A son in Brooklyn calls me. His mother just passed away, and her will names him as the executor of her estate. He is still grieving, yet he’s suddenly faced with a mountain of responsibility—locating assets, notifying beneficiaries, paying the estate’s final bills, and filing taxes. His siblings are already asking when they will receive their inheritance. Amidst it all, he has a practical question that feels almost inappropriate to ask: “Am I supposed to do all of this for free?”
The answer is no. In New York, serving as an executor is a job—a significant one with serious legal and financial duties. The law recognizes the immense work involved and provides for compensation. This isn’t a gift; it is payment for the important stewardship an executor provides.
The Statutory Commission Schedule
Unless a will states otherwise, an executor’s compensation is set by law. We don’t have to guess what’s “reasonable.” The formula is laid out directly in the Surrogate’s Court Procedure Act—specifically, SCPA § 2307. This statute establishes a tiered commission structure based on the value of the estate assets that the executor receives and pays out.
The commissions are calculated as follows:
- 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
- 2% on any amount above $5,000,000
For example, on a $500,000 estate, the executor’s commission would be $19,000. That is calculated as 5% of the first $100,000 ($5,000), plus 4% of the next $200,000 ($8,000), plus 3% of the final $200,000 ($6,000). This statutory formula provides a predictable framework, preventing disputes among beneficiaries over the executor’s pay.
What a Will Can—and Cannot—Change
While SCPA § 2307 provides the default, the person creating the will (the testator) can specify a different arrangement. I have seen clients make several deliberate choices here. Some direct that the executor receive a specific flat fee. Others might state that a family member serving as executor should receive no compensation at all, viewing the role as a final act of love and duty.
However, an executor is not bound by a lower-than-statutory fee specified in the will. The law gives them a choice. Within four months of being appointed, an executor can file a formal renunciation of the compensation specified in the will. If they do, they are entitled to the full statutory commission. This is a crucial protection for someone who may not have realized the sheer volume of work involved when the will was written.
If an estate has more than one executor, they must share a single commission—unless the estate is valued at $300,000 or more. Above that threshold, each executor (up to two) is entitled to a full statutory commission. If there are more than two executors, they must divide two full commissions among themselves.
The “Commissionable” Estate: It’s Not Always What You Think
One of the most common points of confusion is what, exactly, the commission is based on. The percentages apply to the value of the “commissionable estate”—that is, property that the executor actually takes into their custody and distributes. This is a critical distinction.
For instance, if a Manhattan apartment is specifically willed to a daughter and the title passes to her directly without the executor needing to sell it to pay estate debts, its value may not be included in the commission base. The executor didn’t “receive and pay out” the asset. However, if the executor must sell that same apartment to raise cash for taxes and other bequests, the proceeds from the sale are part of the commissionable estate. The work justifies the fee.
Ultimately, the executor’s fee is earned compensation for fulfilling a profound fiduciary duty. It is payment for the time, diligence, and personal liability involved in settling a person’s final affairs and safeguarding their legacy for the next generation.
If you are planning your estate and thinking about who to name as your executor, the question of compensation is a key part of the conversation. It’s a discussion about fairness, family dynamics, and the practical realities of estate administration. To ensure your will reflects your precise wishes on this matter, schedule a meeting with our firm to review the fiduciary appointments and compensation clauses in your plan.
