Serving as an executor is real work — often months of it — and most places recognize that with a right to reasonable compensation, usually called a commission or executor's fee. Whether you take it, waive it, or share it with a co-executor, it is a decision that belongs in the estate's paperwork. Here is how commissions generally work and how to record them properly in the accounting.
Executors are commonly entitled to compensation for administering an estate, but how much depends heavily on where the estate is being administered. Some jurisdictions publish a percentage schedule tied to the size of the estate; others apply a broad reasonableness standard that a court weighs case by case; still others leave it largely to what the will says or what the beneficiaries will accept. There is no universal number, so treat any figure you read online as a starting point for a conversation, not an entitlement. A court clerk's office, an official probate guide for your jurisdiction, or a short conversation with a local lawyer can usually settle what applies to you.
Before you look at your jurisdiction's default rules, read the will. A will can commonly override the default — it might set a specific fee, direct that the executor serve without compensation, or leave the executor a gift expressed to be in place of a commission. If the will is silent, the jurisdiction's default approach usually applies. If the will's terms and the default rules seem to conflict, that is worth clarifying with a local professional before you pay yourself anything, because a commission taken without clear authority is one of the easier things for an unhappy beneficiary to challenge.
Wherever a reasonableness standard applies — and even where a schedule does — your best protection is a simple log of what you actually did. Note the date, the task, and roughly how long it took: meetings with the lawyer, trips to the bank, clearing out the house, chasing account closures, preparing the accounting itself. You do not need anything elaborate; a running list is fine. If a court or a beneficiary ever asks why the commission is fair, a contemporaneous record of the work answers the question far better than memory. It also helps you separate reimbursable out-of-pocket expenses, which are a different line item, from compensation for your time.
An executor's commission is money leaving the estate, so it belongs in the estate accounting as a disbursement line, plainly labeled — not netted against a distribution or quietly folded into another figure. Beneficiaries and, where required, the court should be able to see exactly what was paid, to whom, and when. Timing matters too: many jurisdictions expect court approval or beneficiary consent before an executor pays themselves, so check what your process requires before moving money. Whenever the payment happens, record it the day it happens, with the date and amount, so your accounting always matches the bank statements.
Here is a distinction that surprises many first-time executors: an inheritance and a commission are treated differently. A commission is payment for work, and it is commonly taxable income to the executor, while an inheritance is often treated more favorably. That difference sometimes makes waiving the commission the better financial move for an executor who is also a major beneficiary — but the details depend entirely on your tax rules and your situation. We are not tax advisers and this is not tax advice; before you decide to take or waive a commission, it is genuinely worth a quick check with a tax professional in your jurisdiction.
In family situations, many executors simply do not charge. That is a perfectly good choice, and often the right one for keeping the peace. But treat a waiver as a decision, not a default: note in your records that you considered the commission and chose to waive it, ideally with a short written note or email to the beneficiaries. That way nobody later wonders whether a fee is still coming, and if circumstances change — the estate turns out to be far more work than expected — you have a clear record of what was decided and when. In EstateLedger, you can record the commission as a disbursement line when you take one, or add a zero-amount note documenting the waiver. Either way, the accounting tells the whole story — which is exactly what a good accounting is for.
No. Compensation is a right you can waive, and waiving is common when the executor is a close family member or a major beneficiary. If you waive it, put the decision in writing and note it in the estate records so beneficiaries are not left guessing.
Commonly, yes — it is payment for work, so it is typically treated as taxable income to the executor, unlike an inheritance, which is often treated differently. The specifics depend on your jurisdiction, so check with a tax professional before deciding whether to take or waive the fee.
It varies. Many jurisdictions expect court approval or beneficiary consent before an executor takes a commission, while others allow payment at set stages of administration. Check your local process first, and whenever the payment happens, record it immediately as a clearly labeled disbursement in the estate accounting.
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