When someone takes on the responsibility of being an executor of a will, it often involves a significant commitment of time and energy.
Many wonder, “Does the executor of will get paid for this effort?” The answer is generally no, but the details depend on multiple factors.
This guide will explore the roles of an executor and discuss the concept of executor’s commissions, breaking down when and how an executor might receive payment for managing an estate.
Get ready to gain clarity on this essential topic.
Table of Contents
What Does an Executor a Will Do in QLD?
The role of an executor in Queensland involves a range of responsibilities related to managing and distributing a deceased person’s estate as per their will. Here are some critical duties involved:
- Locating the Will: The executor must first find the deceased person’s will and understand its provisions.
- Applying for Probate: If required, the executor must apply to the Supreme Court of Queensland for probate, which is the court’s recognition of the will’s validity.
- Gathering Assets: The executor is responsible for identifying and collecting the deceased person’s assets, including property, bank accounts, investments, and personal belongings.
- Paying Debts and Taxes: The executor must use the estate’s assets to pay off any debts and taxes the deceased owed.
- Distributing the Estate: After debts and taxes are paid, the executor distributes the remaining assets to the beneficiaries according to the instructions in the will.
- Maintaining Records: Throughout this process, the executor must keep detailed records of all transactions related to the estate.
The role of an executor can be complex and time-consuming, and it’s carried out in a fiduciary capacity, meaning the executor has a legal obligation to act in the estate’s and its beneficiaries’ best interests.
Does The Executor Of Will Get Paid?
No, in most situations executors do not receive a commission for administering an estate.
You could be paid as an executor if the will specifically says you should be. This might be in a situation where the executor is a legal professional, accountant, or someone else who has a professional relationship with the deceased.
The executor’s commission is intended to compensate them for the time, effort, and expenses they’ve put into managing and distributing the estate’s assets.
The specific amount of the commission can vary. It might be set out in the will itself, or if it doesn’t mention it, the executor may apply to the court for a commission.
How Much Does an Executor Get Paid in Queensland?
There is no set commission amount that an Executor can be entitled to. In most cases, the court will award a commission as a fixed sum or a percentage of the estate. Here is an approximate range:
| 0.25% to 1.25% | Transferred assets value |
| 0.5% to 2.5% | Capital gains |
| 1% to 5% | Collection of income by the estate |
| 3% to 5% | Larger, more intricate estates |
The court will then decide whether to award a commission and, if so, how much, based on factors like the size and complexity of the estate and the amount of work involved.
The executor’s commission is paid out of the estate’s assets. Therefore, executors should keep detailed records of their time and expenses for managing the estate.
Alternatively, the will may stipulate a set figure for the amount the executor should receive for their services as an executor.
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What Factors Influence the Fee of an Executor?
Several factors can influence the remuneration of an executor:
Will’s Provisions
The will itself may stipulate the executor’s remuneration. Some wills may provide a fixed amount, a percentage of the estate’s value, or a specific asset as payment.
Size and Complexity of the Estate
Larger or more complex estates often require more work, so executors might receive more remuneration in such cases. The nature of the assets, whether the deceased owned a business, and if there are assets in other jurisdictions can all add complexity.
Time and Effort Spent
The amount of time and effort the executor needs to devote to administering the estate can affect the remuneration. This might encompass tasks like locating and valuing assets, dealing with creditors, preparing tax returns, and managing court proceedings.
Professional Skills or Expertise
If the executor uses their professional skills or expertise (e.g., legal, accounting, real estate), this can influence their remuneration.
Potential Conflicts of Interest
If the executor is also a beneficiary, there might be a potential conflict of interest. The executor may decide not to claim a commission to preserve the estate’s value for all beneficiaries, especially if the executor stands to inherit a significant portion of the estate.
Court Determination
If the will does not specify the executor’s remuneration, the executor can apply to the court for a commission. The court will consider factors like those above to determine fair compensation.
When it comes to paying an executor’s commission in Queensland, there are several legal considerations to bear in mind
Reasonableness of the Commission
The commission must be reasonable. Even if the will specifies a particular amount or percentage, a beneficiary could challenge it in court if it’s excessively high.
Tax Implications
The commission received by an executor is generally considered taxable income. Executors should consult with a tax professional to understand the implications.
Does the Executor of Will Get Paid?
As an executor, understanding your role and entitlements is crucial.
At Walker Pender, we are here to shed light on your responsibilities and rights. Don’t let uncertainty rule; let our expertise work for you. Reach out today for a complimentary consultation!
