Executor’s Commission – What Is It?
Administering an estate can be a tedious and time-consuming task that can impact the executor in many ways, potentially limiting their ability to earn an income and spend quality time with family. It can also be detrimental to their mental health and wellbeing. This is where an executor’s commission may come into play. Robert Wood and Associates are the family law specialists Melbourne trusts for a wide range of professional legal solutions. Read on to learn more about the executor’s commission and how it works.
An Executor May Be Entitled to Claim ‘Executor’s Commission’
This refers to a payment to the executor from the estate for their “pains and troubles” in administering the estate. There is often a large amount of work required from an executor, and this work may go on for months or even years, significantly impacting the executor’s personal life.
The responsibility of an executor and/or administrator may include:
- Arranging the funeral and burial or cremation
- Obtaining a grant of administration
- Calling in the assets of the deceased, which often involves extensive investigation into the affairs of the deceased
- Quantifying and paying the deceased’s debts
- Defending any claims brought against the deceased’s estate
- Distributing assets in accordance with the deceased’s Will
- Maintaining accounts of the administration of the Estate
Due to the time and effort that must be invested throughout the process, executors may be entitled to claim a lump sum payment from the estate, that is separate from any other benefit from a will.
Is an Executor Automatically Entitled to Executor’s Commission?
There is not an automatic entitlement for an executor to receive commission from the estate.
There are several matters which may impact whether an executor can receive commission, these include:
- The nature of the work involved in the estate.
- If the executor has not carried out their role in a timely manner.
- If the executor has not adhered to their duties in administering the estate.
- If the executor is a beneficiary under the Will, the Court will consider what interest the executor has when determining the amount of the commission.
It is important for the executor to receive professional legal advice before any claim or notice of an intended claim is communicated to the beneficiaries.
How Does an Executor Make a Claim?
The executor may approach the beneficiaries of the estate directly. If all the beneficiaries agree to the claim for commission, then the payment can be made by way of an agreement. Alternatively, an executor can make a claim to the Court for an order that they receive commission in a certain amount.
It is important for the executor to attempt to reach an agreement with the beneficiaries of the estate before applying to the court. Depending on the size of the estate, the cost of making an application to the Court may outweigh the actual amount of commission.
To How Much Commission is an Executor Entitled?
The amount of commission payable to an executor will vary depending on the estate. Executors usually receive around 1-3% of the corpus of the estate. Executors may also earn up to 6% of income earned during the estate administration process.
Seeking Legal Advice
If executors are able to arrive at an agreement, then legal advice may not be necessary. However, if a claim is being made to the Court for commission, then hiring a will and estate lawyer is essential.
For an Experienced Will and Estate Dispute Lawyer, Melbourne Can Trust Robert Wood & Associates
With decades of experience, our team can provide expert legal advice in relation to Wills and Probate matters. Whether you want to challenge or contest a will, need guidance on estate planning or if you are an executor or administrator seeking to be paid commission, our friendly team is here to help. To speak with a professional wills and probate solicitor or a will dispute lawyer, Melbourne residents should contact us online now or make an appointment by calling (03) 9762 3877 today.
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