Have you accepted the role of Executor of a deceased person’s estate?
Depending on the nature, size and value of the assets within the estate, you might quickly learn the role can be quite complex.
It can involve a significant amount of time and effort in:
- Identifying the deceased’s assets and “calling them in”;
- Paying estate debts – including ascertaining what tax liabilities exist; and
- Distributing the estate.
As an added bonus, you might also get to deal with some estate disputes and lawyers along the way!
An Executor is entitled to claim commission for their “pains, trouble and inconvenience” of acting in that role.
The amount of Executor’s commission can be agreed upon between the Executor and the beneficiaries of the estate.
If no agreement can be reached, it will be necessary for the Executor to apply to the Court.
How much commission is paid depends on a number of factors.
In broad terms, the Court will look at the time and effort the Executor has committed to administering the estate and what is “just and reasonable”.
Oh, don’t forget the Tax Man generally considers commission received to be taxable income!
If you’re considering claiming commission, you might want to get some legal advice!