Taking care of the testator’s debts, managing their assets and dealing with beneficiaries for months to a year is no easy task. Not to mention, an executor may be liable for any mistakes. With so much to do, a person appointed as executor might wonder if they will receive compensation for their efforts.
Responsibilities of an executor
The executor’s primary responsibilities are to ensure the proper administration of the estate by:
- Locating and making an inventory of the testator’s assets
- Paying off the estate’s debts and taxes
- Distributing remaining assets to beneficiaries
- Maintaining records and sharing information
- Complying with legal processes and deadlines
There are a lot of people and factors involved in estate administration. As a result, the position demands a significant time commitment.
Moreover, making any mistakes, such as not failing to locate a specific asset, forgetting to notify beneficiaries or causing delays by missing deadlines, can subject the executor to hefty financial penalties.
Compensation for executors in Texas
Various factors affect how much an executor can receive. Typically, the testator specifies an amount or calculation in the will to dictate compensation. If no amount is provided, the court will decide.
Meeting all the estate’s requirements may entitle the executor to up to a 5% commission on all estate financial transactions. However, certain exclusions can reduce the total amount. These are:
- Life insurance proceeds
- Assets set aside for beneficiaries
- Cash on hand or held in a bank account by the deceased at the time of their death
If the executor mishandles the estate or is prematurely removed from duty, the court could lower their compensation or decline it altogether.
What if the fee is too small?
The executor may believe the compensation sum is too low due to the number of deductions or issues stemming from managing a large estate. In that case, the court may allow the executor to petition for a higher amount.
A lot is riding on the shoulders of the executor. It is only fitting that all the work put into settling an estate be adequately rewarded. However, obstacles may render all their efforts in vain. To prevent making any mistakes, it may be wise to consult an estate attorney.