Executor Compensation in Texas

How Much Does an Executor Get Paid in Texas?

Being an executor of an estate is a significant responsibility, requiring time, effort, and attention to detail. In Texas, executors are entitled to compensation for their work, typically calculated as a percentage of the estate’s financial transactions. Understanding how executor fees are determined and the factors that influence compensation is crucial for anyone involved in the probate process.

Executor Fees in Texas

According to the Texas Estates Code, an executor is entitled to receive up to 5% of the total financial transactions of the estate. This means that executors are compensated based on the money that flows in and out of the estate during administration.

Example Calculation

If an executor manages an estate with financial transactions totaling $250,000, they may receive up to $12,500 as compensation for their administrative duties.

What is Excluded from Executor Compensation?

It is important to note that certain assets are not included when calculating executor fees. These include:

Can an Executor Request More Than 5%?

While the 5% limit is a general rule, executors may petition the court for higher compensation if the workload is exceptionally demanding. The court will evaluate the complexity of the estate and the executor’s responsibilities before deciding whether additional compensation is warranted.

Executor Compensation in a Will

If the deceased left a will that specifies executor compensation, the Texas probate court will honor that amount. Testators (the individuals making a will) can set their own compensation terms in consultation with their chosen executor. If a valid will outlines specific executor compensation, that agreement takes precedence over the default state law.

Can an Executor Be Denied Compensation?

Yes, an executor’s compensation may be denied if the probate court finds that the executor:

Executors have a fiduciary duty to handle the estate prudently, ensuring assets are distributed fairly and expenses are managed responsibly.

Waiving Executor Fees

Executors may choose to waive their fees at any time. This is particularly common when the executor is also a beneficiary of the estate. Waiving fees can help reduce conflicts of interest and ensure more assets remain within the estate for distribution to heirs.

Need Help Navigating Executor Fees?

Understanding executor compensation is just one part of the probate process. If you have questions about your responsibilities as an executor or need legal guidance, contact a Texas probate attorney for a free consultation today.