How does an New York Executor or Administrator get paid?
Administering an estate can be a complex and time-consuming task. As an executor or administrator,
you deserve to be compensated for your efforts. In New York, the fees paid to estate administrators
vary depending on state laws and the overall value of the estate. This guide will help you understand
how executor fees are calculated and what you need to consider before collecting your commission.
Calculating Executor’s or Administrator’s commissions may be complicated and have unintended
tax consequences. It is best to consult an experienced estate attorney before proceeding.
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Learn about New York executor and administrator fees, how they are calculated, and the
factors that can affect the commissions you receive for administering an estate.
How Executor Fees Are Calculated in New York
In New York, under the Surrogate's Court Procedure Act (SCPA) § 2307, executor commissions are
calculated based on a tiered percentage system applied to the estate's value as follows:
1. 5% of the first $100,000
2. 4% of the next $200,000 ($100,001 - $300,000)
3. 3% of the next $700,000 ($300,001 - $1,000,000)
4. 2.5% of the next $2,000,000 ($1,000,001 - $3,000,000)
5. 2% of any amount over $3,000,000
To calculate the executor commission, apply the relevant percentages to each tier and sum the results.
For an estate valued at $1,000,000, executor commissions under New York SCPA 2307 can be
calculated as follows:
1. 5% of the first $100,000: 5% * $100,000 = $5,000
2. 4% of the next $200,000: 4% * $200,000 = $8,000
3. 3% of the next $700,000: 3% * $700,000 = $21,000
Now, sum the results of each tier:
$5,000 + $8,000 + $21,000 = $34,000
The estimated executor’s commission for an estate valued at $1,000,000 would be $34,000.
Commission Adjustments for Multiple Executors
In New York, under the Surrogate's Court Procedure Act (SCPA) § 2307, commission adjustments for
multiple executors are as follows:
A. Split Fees:
For estates valued at less than $100,000 with more than one executor, the full commission allowed to a
single executor must be divided among all executors according to the services rendered by them
respectively. This means that the commission should be allocated based on each executor's specific
contribution to the estate administration.
B. Equitable Fees:
For estates valued between $100,000 and $300,000, each executor is entitled to the full commission
allowed to a sole executor, unless there are more than two executors. In cases with over two executors,
the full commission allowed to two executors must be divided among them according to the services
rendered by them respectively. This ensures that the commission is distributed fairly based on each
executor's individual contributions to the estate administration.
C. Negotiated Fees:
For estates valued at $300,000 or more, each executor is entitled to the full commission allowed to a
sole executor, unless there are more than three executors. In such cases, the commission that three
executors would be entitled to must be divided among them according to the services rendered by
them respectively. However, the executors may agree in writing among themselves to distribute the
commission differently, allowing for negotiation and consent to determine the allocation of fees based
on their unique circumstances and contributions to the estate administration.
In summary, NY SCPA 2307 outlines commission adjustments for multiple executors based on the
estate's value, the number of executors, and their respective services or written agreements.
Preparing to Collect Your Executor Fee
Before collecting your executor fee, it is essential to consider the following:
Exclusions: Some assets, such as trust funds, joint assets, or real estate not sold by the executor,
may be excluded from the estate's total value when calculating fees.
Tax Liability: Executor commissions are considered taxable income, while inheritance is not. Keep
careful records of your assets and payments to manage your tax liability.
Legal Consultation: Consult with a New York probate attorney to ensure you correctly navigate the
complex rules surrounding executor fees.
Frequently Asked Questions - FAQ
How are executor fees calculated in New York?
Executor fees in New York are determined based on the estate's combined value of assets and income,
according to the Surrogate's Court Procedure Act 2307. The fees are calculated as a percentage of the
estate value, with specific percentages for different value ranges.
How do multiple executors affect commission fees?
If there are multiple executors, New York law outlines specific rules for dividing fees among them.
These rules include split fees for estates valued under $100,000, equitable fees for estates valued
between $100,000 and $300,000, and negotiated fees for estates valued at $300,000 or more.
Are executor fees considered taxable income?
Yes, executor fees are considered taxable income. In contrast, funds inherited as a beneficiary are not
considered taxable income. Keep careful records of your assets and payments to manage your tax
Are there any assets excluded when calculating executor fees?
Yes, certain assets may be excluded when calculating the estate's total value. Excluded assets include
trust funds, joint assets with rights of survivorship, payable on death accounts, and real estate that is
not sold by the executor.
When can an executor collect their fees?
Executor fees are typically paid during the creditor portion of probate proceedings. After the estate's
bills are paid, the executor can collect payment before the rest of the estate is distributed to the
beneficiaries. However, it is crucial to proceed with caution, as beneficiaries can take legal action
against executors for requesting too much from the estate.
Should I consult a lawyer about executor fees?
It is recommended to consult with a New York probate attorney before collecting any fees for your
work as an executor or administrator, as the rules surrounding executor fees can be complicated. An
attorney can help you navigate the process and ensure you receive fair compensation for your efforts.
I. How Executor Fees Are Calculated in New York
A. Fee Percentages Based on Estate Value
B. Surrogate's Court Procedure Act 2307
II. Commission Adjustments for Multiple Executors
A. Split Fees
B. Equitable Fees
C. Negotiated Fees
III. Preparing to Collect Your Executor Fee
A. Exclusions in Calculating Estate Value
B. Tax Liability Considerations
C. Legal Consultation
IV. Frequently Asked Questions
V. Commission Calculator App