Our lawyers are often asked by executors whether they can be paid for their work as an executor. While an executor may ask for commission, there is no absolute entitlement to be awarded commission.
The three most common questions appear below:
- What is executor’s commission?
Executor’s commission is the payment made to an executor for their work in an estate administration.
- How is executor’s commission calculated?
Executor’s commission is awarded based on the “pains and trouble” of the executor in undertaking the tasks of an estate administration and usually awarded as a small percentage of the income and a small percentage of the capital. It is not simply the application of an hourly rate to the time spent.
There are a number of factors that contribute to determining the exact rate of commission awarded, including:
a) whether a lawyer or other professionals were engaged to assist the executors;
b) the size of the estate being administered;
c) the time engaged in attending to the affairs of the estate.
- What is the process for claiming executor’s commission?
Usually, we provide an executor with advice about their claim for executor’s commission, with the recommendation that they approach the residuary beneficiaries for their consent to the proposed commission sought. If that consent is forthcoming, then nothing further need be done.
If the consent is not forthcoming, or there are minor beneficiaries, then an application would need to be brought for the Court to approve the commission sought.