New York Executor Fee
Are you familiar with the fact that executors are entitled to recover compensation as part of the role they play? An executor is an individual appointed by a will to step in and settle the decedent's estate when the decedent passes away.
If you are a beneficiary and wonder what kinds of information you’re entitled to as the estate is closed you, you should get your own attorney to represent you. This person should be familiar with probate and the Surrogate Court procedures for the New York court.
Each closing out of an estate requires very specific steps, even though some mistakes may be more complicated than others. Recognizing this, states all around the country enable executors to recover compensation as part of the role that they play. In New York this is based on the value of the overall estate. Common questions asked of a New York City executor fee lawyer include:
- What rights do I have in the event of executor theft?
- What indicates executor malfeasance?
- Are executor commissions the same for each estate?
- How much do executors get paid?
- Can I challenge the executor if he or she does something wrong?
All of these are important questions for beneficiaries to consider as they move forward with the legal case and retain the services of an attorney. New York laws stipulate how much executors can be paid based on the total size of the estate. New York Surrogate Court Procedure Section 2307 outlines executor fees based on the probate estate's value.
Fees range from 2% all the way up to 5%, of the total amount of money that the executor receives and pays out. Bear in mind that the executor's fees are indeed taxable income which is different from some of the assets that pass to beneficiaries of the estate such as funds from life insurance policies.
Furthermore, if the beneficiary challenges the will or if the beneficiary alleges that the executor has been involved in executor theft, this can further delay the proceedings and can lead to the executor being removed from the case. Executor fees are calculated at:
- Receiving and paying out sums above $5 million at the rate of 2%.
- Receiving and paying out additional money no higher than $4 million at the rate of 2.5%.
- Receiving and paying out additional money no more than $700,000 at the rate of 3%.
- Receiving and paying out additional money no more than $200,000 at the rate of 4%.
- Receiving and paying out money not exceeding $100,000, the fee is 5%.
If more than one executor is appointed to serving that role, then there may be additional questions asked of your New York executor fee attorney. Your New York executor fee lawyer will explain to you that this is based on the individual services provided by each executor. This can also raise further concerns about whether or not an executor has broken the law or crossed the line with regard to the management of estate assets.
The best way to identify whether or not this has happened is to retain an attorney who can request a formal accounting of the estate. The formal accounting details exactly what happened to all of the assets and inventory and often proves as the most important evidence when you need to challenge an executor status and have him or her removed from serving in this role as an executor. No matter what type of questions you have, if you believe that the executor has acted improperly or paid themselves too much money, it is imperative to get legal representation immediately.