Legal Question in Wills and Trusts in Illinois
What % is considered ''Resonable Compensation'' for Executors Fee?
How much is considered 'resonable compensation' for an estate worth about $100,000 (not including atty fees being taken off the back end)? There are 3 of us listed to inherit from the estate, our executor not being one. She is nonetheless expecting 25% (or an amt equal to our share of the estate), plus her out of pocket expenses. She had gone as far as to let the house start foreclosure proceedings to extort 25% from us. According to her, she hasn't handled anything herself, everything is supposedly being handled by her atty.
Any guidelines/direction as to how to determine what is resonable or how to handle this is greatly appreciated.
1 Answer from Attorneys
Re: What % is considered ''Resonable Compensation'' for Executors Fee?
Most attorneys charge an hourly fee for probate work. Most executors also charge an hourly fee based on what is the "going rate" in the community, or, if the executor is a corporate entity, what that bank or institution normally charges. However, when the estate is being closed, the judge generally reviews the fees of the executor and the attorney. If he/she believes they are excessive, he/she may require that fees be reduced, or even refunded if they have already been paid.
If this estate is in probate, you will want to bring this to the attention of the judge. The main function of the court in a probate estate is to protect the assets so that they can be distributed to the proper beneficiaries.
If this estate is not in probate (most estates over $50,000 must be probated in Illinos), you may want to have an attorney review your situation to see if an estate should be opened.
Keep in mind that the answer given above is based solely on the information you have provided. The answer might be different if there are other facts that you have not provided.
Good luck to you.
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