Does Executor Commission Come Out of the Gross Estate?

Executor commission comes out of the gross estate, not out of the net estate in New York. If you want to know how much an executor gets paid in NY, here are the commission percentages:

• 5% of the first $100,000
• 4% of the next $200,000
• 3% the next $700,000
• 2.5% of the next $4 Million
• 2% of the rest of the value of the estate

This calculation instruction is written out in SCPA 2307.

Here is our interactive calculator for how much is an executor paid in NY out of the gross estate:

[CP_CALCULATED_FIELDS id=”6″]

We hope the NY executor commission calculator has been helpful to you.

Executors of Estates in NY are not expected to carry out their responsibilities free of charge. They are usually entitled to compensation, which comes out of the gross estate, not the net estate. This compensation is called “commissions.” The amount an executor is paid in NY is set by law, in SCPA 2307.

To calculate how much is an executor paid in NY, seek the advice of an estate attorney. The calculation can be trickier than people think.

Keep in mind that the statute requires that commission be split between receiving and paying out. The amount of the executor fees will be the same as above, but listing it will look different, as the “receiving” fee and “paying out” fee will be specified, each being half of the total executor commission calculated.

Actually using the percentages can be a bit confusing. Even though the NY executor commission calculator above does the math for you, you should still be able to double-check and do the math yourself.  Here is an additional explanation, which will help you understand how the calculation works:

• 5% of the first $100,000
• 4% of the next $200,000 (so $5,000 plus 4% of estate value up to $300,000)
• 3% the next $700,000 (so $5,000 plus $8,000 plus 3% of estate value up to $1 million)
• 2.5% of the next $4 Million (so $5,000 plus $8,000 plus $21,000 plus 2.5% of estate value up to $5 million)
• 2% of the rest (this is an estate that is worth more than $5 Million, so $5,000 plus $8,000 plus $21,000 plus $100,000 plus 2% of estate value over $5 Million)

The percentage is based on the value of the estate’s assets plus income derived from those assets. For example, interest received from property of the estate is included in when you calculate the executor commission, but the property itself may not be included because the executor is not involved in the property’s sale. This is sometimes counterintuitive, because the executor usually is involved in retitling the property from the decedent to the beneficiaries. As you can see, it is now always easy to determine which assets are included in the calculation, so an executor is well advised to consult with a NY estate attorney before taking their fees. It is likely that a preliminary account of the estate will be required when filing for a request for an advance commission.

The executor may be entitled to additional reasonable compensation in connection with property management (5% of gross rentals), litigation or tax matters or management of the decedent’s business matters.

If you need to calculate executor commission in NY as per SCPA 2307, and other help in an estate, you can get in touch with New York estate attorney Albert Goodwin at [email protected] or by calling (212) 233-1233.