What is the executors commission?
Compensation for an executor in Virginia is the sole discretion of the court which has jurisdiction over the estate. As a general guideline, an executor is entitled to whatever fee is fixed by the will. Where a specific fee was not fixed, the courts have considered reasonable a fee equal to 5% of the assets. This could be reduced to a 2.5% commission, where the executor was not entitled to sell the real property of the estate, but only to deliver it in kind.
While there is no specific rate set by statute in Virginia, many jurisdictions have established guidelines for determining an executor’s commission, based on the complexity of the estate, the responsibilities assumed by the executor, and the amount and type of professional services required to administer the estate. For example, the Commissioner of Accounts of Fairfax County has established guidelines for executor commissions, which are published on itswebsite. In general, these guidelines allow for an executor’s commission as follows:
- On income: 5% of income receipts (not including capital gains) realized during each accounting period.
- On principal: A fee based upon the inventory value, including amended inventories, of the decedent’s probate assets in accordance with the following schedule:
First $400,000.00
5%
Next $300,000.00
4%
Next $300,000.00
3%
Balance over $1,000,000.00
2%
Balance over $10,000,000.00
By agreement with the Commissioner
(prior consultation is required)
The Fairfax County website includes further details regarding executor’s commissions. Note that such compensation may be increased or decreased at the Commissioner of Accounts’ sole discretion, based on various factors. Executors are not required to wait until the estate is closed to take their compensation, however, compensation may be forfeited if the proper account is not timely filed.
Reasonable fees for attorneys, accountants and/or investment advisors may be reimbursed if necessary for the proper administration of the estate. However, if an executor chooses to use an attorney or accountant for the basic administration of the estate, this may be deducted from the executor’s commission, depending on a number of factors considered by the Commissioner of Accounts.
