An executor of a New York estate may be entitled to commissions for services rendered, subject to the terms of the decedent’s will. Executor’s fees are set by the New York Statutes. In New York, executor’s fees are calculated based upon the value and income of the estate as follows:
• 5% for receiving and paying amounts not to exceed $100,000
• 4% for receiving and paying out any additional amounts not exceeding $200,000
• 3% for receiving and paying out any additional amounts not exceeding $700,000
• 2.5% for receiving and paying out any additional amounts not exceeding $4,000,000
• 2% for receiving and paying out any additional amounts above $5,000,000
Assets that have named beneficiaries that pass outside the estate are excluded in determining the value of the estate. Examples would be life insurance, pension plans and assets held in a trust for beneficiaries. Trust assets would be administered by the trustee named in the trust. Also, real estate that is distributed simply by changing title is also excluded.
Executor Fees for Two More Executors in NYC
When there are two executors, and the value of the estate is between $100,000 and under $300,000, then each co-executor is entitled to a full single fee. So if the estate is valued at $100,000 each executor gets $5,000 each as their executor fee commission. However, when there are three or more executors, then the fee must be divided amongst them according to the type of services they performed or pursuant to a written agreement.
For New York estates valued at $300,000 or over, if there are three co-executors, each gets a full single executor fee. If there are more than three co-executors, then the fee is divided amongst them according to the type of services performed or pursuant to a written agreement.
Deciding Whether or Not to Take a NY Executor’s Fee
If you are acting as an executor or personal representative of a New York estate and you are also a beneficiary, you might want to talk to your estate attorney or accountant before you decide to take an executor’s fee because executor’s fees are considered taxable income. They are not subject to self-employment/social security taxes though. However, any money received by you as a beneficiary is not taxable. So it might be more beneficial to you to waive the executor’s fee commission depending on your financial situation. Out of pocket expenses are not considered taxable income because they are expenses incurred while administering the estate and not for services rendered by the executor. The executor can submit a written accounting asking for reimbursement by the estate for any out of pocket expenses. The New York Surrogate’s Court has the jurisdiction to approve all estate matters including payment of executor fees, attorney’s fees and accountings.
If you are an executor of a New York estate or an interested party to the estate and have any questions concerning executor’s fees or other estate matters, a New York probate and estate attorney can assist you.
If you wish to speak to a New York estate attorney, call the Law Offices of Albert Goodwin at