Legal Question in Wills and Trusts in New Jersey

Re: Executor Fee

Capital gains on the sale of a house are not subject to income commissions. The house is a principal asset, subject to corpus commissions. Income commissions are payable on things like interest, dividends, rental proceeds, royalties, etc.; not on the sale of a principal asset.

See N.J.S.A 3B:19A-6 for definition of "income" and N.J.S.A 3B:19A-7 for definition of "principal".

Re: Executor Fee

The sale of an estate asset like a house is not income no matter what the sale price. It is simply an asset of the estate and the sale proceeds are cash assets of the estate - there is no income. Same with the sale of personal property. There may be an exception to this if one can show that the asset clearly appreciated in value from the date of death to the sale date (not just that you were able to get a high price for the house when you sold it). That would be income but in the case of a house or personal property it is unlikely to be the case unless years passed from the date of death to the sale. Estimated value or appraisals for tax returns are irrelevant. However interest received on investments is income - as well as dividends and any appreciation of stocks or investments from the date of death to the present or to the sale date - because such appreciation can be objectively measured as income.

Re: Executor Fee

Income is interest, dividends and capital gains. If real estate is sold for more than its estate value, the excess (the gain) is subject to income commission. If personal property is sold over estate value, excess is income. Estate values are solely used to calculate corpus commissions, to which as Executor is also entitled.