Legal Question in Wills and Trusts in Massachusetts

Re: are executors paid in massachusetts?

Unless the Will states you are to serve without compensation, you are entitled to a commission on those assets that are distributable under the Will. Your fee as Executrix is set by statute, but limited to probate assets (not the assets in the trust). In NJ, the current statutory fee is 5% on the first $200,000, 3.5% from $200,000 to $1,000,000 and 2% on assets over $1,000,000. In addition, income commissions of 6% of annual income are allowed. For other states, you can contact the local Surrogate's Court for the commission schedule, or check on-line if they have a website. Similarly, trustee commissions for acting as a trustee under a living trust (not under the Will) are also set by statute, unless the document specifies what fees may be paid. The fees are income and need to be reported in your tax return if taken (as other income with no social security taxes paid) and are also deductions for inheritance or estate tax and estate income tax purposes. Distributions from an estate or trust not consisting of income items are not subject to income taxes. Income distributions from an estate or trust are income for income tax purposes, unless the taxes are paid by the estate or trust. There are special rules if the taxes are paid by the estate or trust, so an accountant or tax attorney should be consulted.