Executor Fees Explained: What Attorneys Need to Know in 2026

The Executor Fee Question Every Attorney Faces

Whether you represent the executor, a beneficiary, or the estate itself, executor compensation is one of the most frequently litigated issues in probate. Executors want to be paid fairly for what is often a difficult, time-consuming job. Beneficiaries want assurance that fees are reasonable and not eroding their inheritance. And attorneys are caught in the middle, advising on a topic where the rules vary dramatically from state to state.

This article covers the three primary models for executor compensation, highlights key state-specific rules, and provides practical guidance for attorneys advising fiduciaries in 2026.

Model 1: Statutory Percentage Fees

A number of states set executor compensation by statute as a percentage of the estate. California, the most well-known example, uses the same tiered schedule for executor fees as it does for attorney fees: 4% on the first $100,000, 3% on the next $100,000, 2% on the next $800,000, and so on under Probate Code §10800.

New York follows a statutory schedule under SCPA §2307: 5% on the first $100,000, 4% on the next $200,000, 3% on the next $700,000, 2.5% on the next $4,000,000, and 2% on amounts above $5,000,000. For a $2,000,000 estate, the statutory executor commission is $59,000. When the decedent names multiple executors, the statute provides for apportionment—two executors each receive the full commission, but three or more split according to a different formula. Courts retain discretion to adjust these amounts in extraordinary circumstances.

Missouri uses a percentage-based guideline rooted in case law rather than explicit statute, with courts typically approving 5% on the first $5,000, 4% on the next $20,000, 3% on the next $75,000, and 2.75% on amounts above $100,000. These are guidelines rather than mandates, and courts retain discretion to adjust compensation based on the complexity of the administration.

Model 2: Reasonable Compensation

Most states follow a reasonable compensation model, where executor fees are determined by the court based on factors such as the size and complexity of the estate, the time and effort involved, the skill required, and the results achieved. Texas is a leading example: under the Texas Estates Code, an executor may receive up to a 5% commission on all amounts received and a 5% commission on all amounts paid out in cash, subject to court approval and adjustment based on reasonableness. Importantly, executor compensation in any state may be waived by the executor, is generally subject to court approval, and may be modified or limited by the governing instrument (e.g., the will).

The reasonable compensation model creates both opportunity and risk. An executor who manages a complex, multi-asset estate through contested litigation and tax audits can petition for enhanced compensation. Conversely, an executor who mismanages assets or causes unnecessary delay may see fees reduced or denied entirely.

For attorneys advising executors in reasonable-compensation states, documentation is essential. Maintaining detailed time records, even when not strictly required, creates a defensible basis for the fee petition and protects against beneficiary objections.

Model 3: Court-Approved and Hybrid Approaches

Some jurisdictions require advance court approval of executor fees, regardless of whether a statutory schedule exists. Others use a hybrid approach where the statute sets a presumptive fee but permits deviation on court approval.

Florida takes a statutory approach for personal representative fees under Florida Statute §733.617, providing a schedule similar to attorney fees. However, the personal representative may also receive additional "extraordinary" fees for services beyond ordinary administration—such as managing active litigation, operating a business, or handling complex tax matters—subject to court approval.

In practice, hybrid approaches require careful attention to procedure. An executor who takes compensation without following the required approval process risks surcharge, removal, or both. Because executor compensation frameworks differ substantially among jurisdictions, attorneys should always verify the specific compensation rules, approval procedures, and any limitations imposed by the governing instrument in their jurisdiction before the executor draws fees.

Common Pitfalls in Executor Fee Disputes

Fee disputes arise from a predictable set of circumstances:

• Executor pays themselves before obtaining court approval in jurisdictions that require it
• Executor takes a percentage fee in a reasonable-compensation state without documenting the work performed
• Multiple executors disagree on how to split compensation
• A beneficiary believes the fees are excessive relative to the work done

Another frequent issue involves the distinction between executor compensation and attorney fees. An executor who is also an attorney may be entitled to both executor fees and attorney fees for legal work performed on behalf of the estate—but not all jurisdictions permit this dual compensation. California allows it under Probate Code §10804 if the executor provides legal services beyond ordinary executor duties. New York generally allows it as well, but the combined compensation is subject to scrutiny.

Tax treatment adds another layer. Executor fees are taxable income to the recipient and deductible by the estate (as an administration expense), while bequests are generally not taxable income. An executor who is also a beneficiary may prefer to waive fees and take a larger bequest instead. Attorneys should model both scenarios for their clients.

How to Estimate Executor Fees Accurately

Manual executor fee estimation requires pulling up the relevant statute or case law, identifying whether the state uses a statutory schedule or reasonable-compensation standard, determining the gross estate value (since most statutory schedules are based on gross value), and running the percentage calculation—accounting for any tiered breakpoints.

Our executor fee calculator automates this entire process for all 50 states plus DC. Enter the estate value and state, and you receive a detailed breakdown of estimated executor compensation, along with the applicable statutory or case law basis. For states that use reasonable compensation, the calculator provides a range based on prevailing court-approved rates.

The calculator is available for free at madeforlaw.com, and can be embedded directly into your law firm website. Pro users get unlimited calculations, white-label branding, lead capture, and PDF fee reports they can share with clients—all starting at $49/month or $42/month billed annually ($499/year).

Practical Advice for 2026

Executor fee law does not change frequently, but when it does, the changes can be significant. Attorneys should monitor legislative updates in their practice states and verify that any estimation tools they use are current. Our calculator is updated continuously as states revise their fee schedules and filing costs.

If your practice includes advising executors, having an accurate fee estimation tool is essential for setting expectations at the outset of the engagement. Disputes over compensation are far easier to prevent than to resolve. Start the conversation early, document the basis for the fee, and provide a clear, defensible estimate from day one.