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Christopher B, Esq
Christopher B, Esq, Attorney
Category: Estate Law
Satisfied Customers: 2677
Experience:  Litigation Attorney with education focus on estate planning and tax
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How much money does executor receive on a final 70000.00 estae?Aren't

Customer Question

How much money does executor receive on a final 70000.00 estae?Aren't there exemtion's to the 5% rule?
Submitted: 1 year ago.
Category: Estate Law
Expert:  Christopher B, Esq replied 1 year ago.
What state are you located in?
Expert:  Christopher B, Esq replied 1 year ago.
My name is***** and I will be helping you with your question today. This is for informational purposes only and does not establish an attorney client relationship.
In Texas, there is no requirement that an executor or trustee has to be paid a commission or be compensated for their work, but if you are not going to pay them, you have to say so in the instrument that appoints them (i.e., the Will or the trust agreement). If you do not make any reference to compensation, the Texas Probate Code (for executors) or Texas Property Code (for trustees) provides for compensation.
Section 241 of the Texas Probate Code provides that Executors are entitled to a commission of five per cent (5%) on all sums that actually receive in cash, and five per cent (5%) on all sums they pay out in cash. According to Section 241, you will find that “sums received” does not include cash received that was on deposit in a financial institution, life insurance proceeds, certificates of deposit and similar items. In addition, “sums paid out” does not include distributions to beneficiaries of the estate.
If the executor conducts a sale of property of the estate, the five per cent (5%) will apply unless a broker was used who is also being paid a commission. Thus, on the sale of a home where a broker was used and was paid a commission, the executor is not entitled to a commission as well. Where publicly-traded stock is sold in a brokerage account, and the broker receives a commission on the transaction, the executor receives no compensation.
The general rule of thumb is that the compensation will equal 5% of the income and 5% of the expenses of the estate. Sometimes this is adequate compensation, and sometimes it is not. If the executor feels the compensation is too low, he can always petition the probate court to consider additional compensation to be paid under Section 241.
Please let me know if you have any further questions or require any additional guidance. Please do not forget to positively rate my answer as this is the only way that I am compensated for my work.
Expert:  Christopher B, Esq replied 1 year ago.
I see you have reviewed my answer, please let me know if you have any further questions and if not please positively rate my answer as it is the only way I am compensated for my time.

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