Do Executors Get Paid? Yes. Here's How Much, by State.

You're doing 570 hours of unpaid labor across 12+ institutions. The least the estate can do is compensate you.

Let's start with the thing most people are afraid to ask: "Am I allowed to get paid for this?"

Yes. In nearly every state, executors are legally entitled to compensation for their work. This isn't a bonus. It's not a gift. It's payment for a job — one that involves managing assets, navigating probate, filing taxes, coordinating with institutions that don't talk to each other, and keeping detailed records of everything you do. All while grieving because someone you love died.

And yet, most executors don't claim compensation. Some don't know they can. Others feel guilty about it. And some just can't figure out how it works in their state because — surprise — there's no simple, centralized place to look it up.

Until now.

How Executor Compensation Works

There are two basic approaches, depending on your state:

Percentage-based states set a statutory fee schedule — a specific percentage of the estate's value. The percentages are tiered, meaning the rate goes down as the estate gets larger.

Reasonable compensation states don't set a specific number. Instead, the court determines what's "reasonable" based on the size and complexity of the estate, the time you spent, and what executors in your area typically earn.

A few states use a hybrid — a statutory guideline with room for the court to adjust.

Executor Fees by State

Here's what each state allows. These are statutory maximums or guidelines — you can always take less, and in "reasonable compensation" states, the court has final say.

Percentage-Based States

Arkansas 10% of the first $1,000, 5% of the next $4,000, 3% of the rest.

California 4% of the first $100K, 3% of the next $100K, 2% of the next $800K, 1% of the next $9M, 0.5% of the next $15M. Above $25M, the court decides. On a $500K estate, that's $13,000.

Florida 3% of the first $1M, 2.5% of the next $4M, 2% of the next $5M, 1.5% on everything above $10M.

Missouri 5% of the first $5,000, 4% of the next $20,000, 3% of the next $75,000, 2.75% of the next $300,000, 2.5% of the next $600,000. Above $1M, the court decides.

Montana 3% of the first $40,000, 2% of the rest.

New Jersey Up to 6% for estates under $200K; 5% on income received by the estate. The court has discretion for larger estates.

New York 5% of the first $100K, 4% of the next $200K, 3% of the next $700K, 2.5% of the next $4M, 2% above $5M. On a $500K estate, that's $18,000.

Wyoming 10% of the first $1,000, 5% of the next $4,000, 3% of the next $15,000, 2% of the rest.

Reasonable Compensation States

The majority of states — including Texas, Illinois, Ohio, Pennsylvania, Michigan, Georgia, and many others — use the "reasonable compensation" standard. This means there's no fixed formula. The court considers:

  • The size and complexity of the estate

  • How much time you spent

  • Whether you had to deal with litigation or disputes

  • What professionals in your area charge for similar work

  • Whether you had to manage a business, sell real estate, or handle complicated tax situations

In practice, "reasonable" often lands between 1% and 5% of the estate's value, but it varies widely. If you hired a probate attorney and an accountant (which you should, for complex estates), their fees are separate — paid by the estate, not out of your compensation.

States With Specific Rules Worth Noting

Connecticut: Judges rarely approve more than 3–4%, even though it's technically "reasonable compensation."

Hawaii: Typically allows "reasonable" fees but caps at 5% unless the court grants more.

Massachusetts: No statute — compensation is entirely at the court's discretion.

South Dakota: 5% of the first $1,000, 4% of the rest — one of the simpler formulas.

Things Nobody Tells You About Executor Pay

It's taxable income. Executor compensation is reported as income on your personal tax return. It's not an inheritance — it's payment for services. This is important because it means you'll owe income tax (and possibly self-employment tax) on the amount.

You can waive it. Some executors — especially those who are also beneficiaries — choose to skip compensation for tax reasons. If you'd inherit the money anyway, taking it as an inheritance (generally not taxable) might be better than taking it as compensation (taxable). Talk to a CPA before deciding.

Co-executors split the fee. If there are two of you, you typically share the total compensation, not double it. In some states, co-executors can each receive a full fee — check your state's rules.

Extraordinary services get extra pay. If the estate involves litigation, selling a business, managing rental property, or other work beyond the basics, you can petition the court for additional compensation. Keep meticulous records of your time.

You should keep a time log. Especially in reasonable compensation states. Document every hour: phone calls with institutions, court appearances, time spent organizing documents, trips to the property. If anyone challenges your fee, this log is your defense.

How to Actually Claim Your Compensation

The process varies by state, but generally:

  1. Keep detailed records of everything you do, including time spent and expenses incurred. Save receipts.

  2. File an accounting with the probate court showing all estate assets, debts paid, income received, and distributions made.

  3. Include your fee in the accounting. In percentage states, calculate it from the estate's value. In reasonable compensation states, document your time and justify the amount.

  4. Get court approval. The court (and sometimes the beneficiaries) must approve your compensation. If no one objects, this is usually straightforward.

  5. Pay yourself from the estate account. After approval, the fee is paid from the estate — not from any beneficiary's share.

The Bigger Picture

Here's what this comes down to: settling an estate is work. Real, significant, time-consuming work. The average estate takes 570 hours to settle across 12+ institutions. Most people do this twice — once for each parent.

You deserve to be compensated for that. Don't feel guilty about it. The legal system built in executor compensation for a reason: because this job is hard, and someone has to do it.

If you're in the middle of this right now, Good Grief can help you stay organized, track your tasks, and make sense of the process — so when it's time to file your accounting with the court, you have everything in one place.

Start your checklist →

Good Grief is the secure executor portal for death administration. 570 hours of work across 12+ institutions, finally in one place. Because grief is hard. Death admin shouldn't be.

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