Legal Question in Wills and Trusts in Massachusetts

Re: estate law in mass. usa

I think charging a reasonable hourly fee for your services, plus expenses, etc. is acceptable practice.

You should look at the will to see what it authorizes. If you would like, I would be happy to review the will as an unbiased third party and set a reasonable fee for the executrix.

Please feel free to contact me.

Re: estate law in mass. usa

It is impermissible for an executrix to receive a fee based on a percentage of the estate. An executrix is entitled to receive a fee based on the services she provides to the estate and for her expenses incurred in administering the estate. These fees can include time spent in meeting with attorneys, accountants, etc., travel costs from CT, copying and mail expenses and the like. The hourly rate, especially where the executrix is a family member, is usually a fairly small amount.

Your wife is entitled to receive a fee, but she is also required to file with the probate court an account of any funds the estate has received and all funds paid out on behalf of the estate before the estate can be closed. This account must include any fee/expenses received by the executrix. This account must be reviewed by the remaining heirs, who have an opportunity to contest the account, before it is allowed by a judge.

This office has represented many executors in contested matters. I would be happy to discuss this with you and your wife.

Re: estate law in mass. usa

Typically, unless they are professionals providing professional services, family executors do not charge a fee. Part of the rationale is that the fee is considered ordinary income, on which income tax will be payable, and the beneficiary is paying a portion of the fee out of money which they would otherwise receive tax free. (On top of which, the other siblings may object if the fee is considered too large.)

Expenses, on the other hand, are typically reimbursed because they are only incurred because of the role the executrix is carrying out.

While corporate fiduciaries such as banks and trusts companies do charge on a percentage basis (plus additional fees for this and that just because they can get away with it!), you would have to negotiate with the siblings if you intended to charge a percentage fee, and justify why that would benefit the siblings (as opposed to the executrix.)

Likewise, if you want to charge an hourly rate, that should be (preferably) agreed upon in advance so that the siblings don't feel short-changed. In any event, meticulous records should be kept of expenses, time, etcetera, and especially so if the estate will exceed $1,000,000 including nonprobate property including life insurance. Estates in excess of $1,000,000 in Massachusetts are subject to estate taxation.