An executor oversees the distribution of assets of the estate after a person dies. Depending on the size and type of property in the estate, the job of an executor can be relatively simple or very complex. In most cases, the amount paid to an executor varies depending on the value and complexity of the estate.
Family member or friend Executor
With many small farms, family member or friend of the deceased serves as executor of the estate. This is especially true when there are only a few heirs. When you run a small farm, it is common for the executor to work without pay. However, even if it is even a small property, can be a time consuming process and many people choose to pay a fee to a friend or family member who serves as executor.
If a person decides to use a relative, a friend or a professional to serve as executor of an estate, most states limit the size of the fee that the executor can charge. The amount that an executor can charge varies from state to state, but the limit is usually between 1 and 4 percent of the total value of goods. In some states the maximum percentage that an executor can charge varies depending on the size of the farm.
In addition to paying the legal limit, a person can negotiate a lower amount to place a property. The fact that a person has a large estate, it means that the solution of the estate will be complicated. For example, a person may have a significant amount of money in investments , but a company or financial advisor can manage the entire amount. In this case, the company or consultant already familiar with the management of assets and may be willing to serve as executor for less than the standard rate.
When dealing with a complex estate, an executor may have to hire professionals to help in solving it. For example, the executor can hire an accountant, lawyer, financial advisor or other professional to complicated issues. The state pays the costs of these services over the fees paid to the executor. Although laws vary in each state, a person generally can not be an executor charge for and collect other fees. For example, if an accountant serves as executor, you can not charge a fee for being the executor , as well as charge the estate a fee for accounting work.