Legal Question in Wills and Trusts in New Jersey

Re: Executor Fees

Executor fees are based upon the entire probate estate, not individual assets. Probate estate are the assets covered by the Will, not those that may pass by asset registration (such as a joint account) or beneficiary designation (like an insurance policy with named beneficiaries). The fees allowed are 5% of the first $200,000; 3.5% on the next $800,000 and 2% on the balance is the estate is over $1,000,000. In addition, the Executor is allowed 6% on all income received by the estate (if the house sold for more than its basis as determined for estate/inheritance tax purposes, the excess is considered income), interest, dividends, etc. Additionally, you may be eligible to be reimbursed for all costs and expenses you incurred as Executor, such as probate costs, reasonable travel costs (mileage) and any costs incurred for funeral and related expenses, repast costs, etc. If you have specific questions, contact me directly. You need not charge the full fee, if you so desire, and can charge anything less than the maximum. Executor fees are income to be reported in your personal return, but are not subject to social security contributions.