Legal Question in Wills and Trusts in Colorado
I am the executor of both of my parents' estates in Colorado. All bills have been paid and I am getting ready to distribute the remaining assets to the beneficiaries #of which I am one#. Am I allowed to pay myself a fee for the duties of executor? Can I estimate the number of hours I have spent on these duties and pay myself at my normal hourly rate #I make about $56/hour#? Or can I pay myself a flat percentage of the estate? My parents did include a clause in their wills that the executor could be paid a reasonable fee, but they did not indicate an amount.
2 Answers from Attorneys
You are entitled to compensation. The compensation must be "reasonable," though that is not well defined in the case law. You cannot take a flat percentage of assets. $56 per hour likely would be viewed by the courts as being on the high end of reasonable. However, to the extent you took time off from work, paying yourself $56 would be reasonable for those hours. If you have not done so, it is best to keep detailed records of tasks you performed and the time spent to justify your fees. To avoid issues with the beneficiaries, if you are concerned that they might object, you could discuss your rate with them and seek their agreement. Hope this helps.
Under Colorado law, the Personal Representative is entitled to claim a "reasonable fee" The Courts have interpreted that on a case by case basis.
You should not claim a percentage fee. Also, you should have available detailed records about the work actually performed and not attempt to relay on an estimate of your time. Absent this, all estate beneficiaries could enter into an Estate Settlement Agreement where the fee is agreed to.
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