How are executor and administrative fees determined in California?

10800. (a) Subject to the provisions of this part, for ordinary services the personal representative shall receive compensation based on the value of the estate accounted for by the personal representative, as follows: (1) Four percent on the first one hundred thousand dollars ($100,000). (2) Three percent on the next one hundred thousand dollars ($100,000). (3) Two percent on the next eight hundred thousand dollars ($800,000). (4) One percent on the next nine million dollars ($9,000,000). (5) One-half of one percent on the next fifteen million dollars ($15,000,000). (6) For all amounts above twenty-five million dollars ($25,000,000), a reasonable amount to be determined by the court. (b) For the purposes of this section, the value of the estate accounted for by the personal representative is the total amount of the appraisal value of property in the inventory, plus gains over the appraisal value on sales, plus receipts, less losses from the appraisal value on sales, without reference to encumbrances or other obligations on estate property. 10801. (a) Subject to the provisions of this part, in addition to the compensation provided by Section 10800, the court may allow additional compensation for extraordinary services by the personal representative in an amount the court determines is just and reasonable. (b) The personal representative may also employ or retain tax counsel, tax auditors, accountants, or other tax experts for the performance of any action which such persons, respectively, may lawfully perform in the computation, reporting, or making of tax returns, or in negotiations or litigation which may be necessary for the final determination and payment of taxes, and pay from the funds of the estate for such services. 10802. (a) Except as otherwise provided in this section, if the decedent's will makes provision for the compensation of the personal representative, the compensation provided by the will shall be the full and only compensation for the services of the personal representative. (b) The personal representative may petition the court to be relieved from a provision of the will that provides for the compensation of the personal representative. (c) Notice of the hearing on the petition shall be given as provided in Section 1220 to all of the following persons: (1) Each person listed in Section 1220. (2) Each known heir whose interest in the estate would be affected by the petition. (3) Each known devisee whose interest in the estate would be affected by the petition. (4) The Attorney General, at the office of the Attorney General in Sacramento, if any portion of the estate is to escheat to the state and its interest in the estate would be affected by the petition. (d) If the court determines that it is to the advantage of the estate and in the best interest of the persons interested in the estate, the court may make an order authorizing compensation for the personal representative in an amount greater than provided in the will. The trustee is paid according to the terms of the trust which is separate from the compensation of the probate estate. Yes it is all taxable. Disclaimer Although the above response is believed to be accurate, it should not be relied upon as any type of legal advice because the information provided is incomplete. It is intended to educate the reader and a more definite answer should be based on a consultation with a lawyer. No attorney client relation is formed with me without a written contract. Good Luck starts with a strategy and a plan. Robert J. Suhajda, MS,CPA Attorney-At-Law 17721 Norwalk Blvd. #43 Artesia, CA 90701 562-924-8922 Former financial auditor and controller. Admitted to US Tax Court, Income Tax, IRS representation, Fiduciary income tax returns, Estate and Gift tax returns, Homeowner Association Strategist.

If an estate goes through probate, the fee paid to the executor/administrator is based on a fee schedule set forth in the probate code, based on the gross value of the probate estate. The fee will not cover property that is administered through a trust; only what goes through the formal court probate process. The fees paid to a trustee are governed by what is stated in the trust itself, and if there is no provision on point, then the fees are as approved by the probate court, generally a reasonable amount for services rendered. The actual fee will thus depend on what services were rendered, how complex the matters were, and any particular expertise brought into play by the trustee. Professional trustees frequently receive payment measured by a percentage of the assets administered; non-professional trustees typically are awarded compensation on an hourly basis for work actually performed. The payments you receive for your services are subject to income tax at whatever rate applies to you. Disclaimer: This general response is not intended to create an attorney-client relationship. Disclaim