When a Brooklyn family reads a parent’s will and discovers the eldest sibling is named executor, the initial reaction is usually a sense of honor. That feeling lasts exactly until the first trip to Surrogate’s Court. Suddenly, the honor transforms into a demanding, months-long job. There are final tax returns to file, a house to clear out, creditors to negotiate with, and beneficiary expectations to manage. Naturally, the person carrying this administrative burden eventually asks a practical question: am I getting paid for this?
The role of an executor is one of profound stewardship—but it is also a massive commitment of time and energy. Compensation for this work is not an arbitrary bonus or a tip left by the beneficiaries. It is a strict legal entitlement based on the value of the assets under management.
The Statutory Math of Executor Commissions
In New York, fiduciary compensation is not left to guesswork, nor is it billed at an hourly rate. The Surrogate’s Court Procedure Act (SCPA) § 2307 dictates exactly how much an executor is paid. We refer to this as a statutory commission. The math operates on a tiered percentage based on the size of the probate estate.
The current fee schedule breaks down as follows:
- 5% on the first $100,000 of the estate
- 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
If you are managing a $1 million estate, you do not simply take a flat 3% of the total. You calculate the fee progressively through the brackets. The first $100,000 yields $5,000. The next $200,000 yields $8,000. The remaining $700,000 yields $21,000. The total commission for a $1 million probate estate is exactly $34,000.
What Actually Counts Toward the Estate Value?
This is where newly minted executors often miscalculate. The statutory commission is based strictly on the probate estate—the assets passing directly through the will that require the executor’s active management.
If the deceased had a $2 million life insurance policy paying directly to a sibling, that money bypasses Surrogate’s Court entirely. It does not factor into the executor’s fee. Similarly, property held in an intentional living trust, or bank accounts with payable-on-death designations, are excluded from the commission math.
Furthermore, specific legacies do not generate a commission. If a will states, “I leave my vintage Rolex to my nephew,” the executor does not take a percentage of that watch’s appraised value simply for handing it over. The fee compensates for the actual liquidation, consolidation, and distribution of general estate assets. It does not cover the mere transfer of a specifically identified object—unless the executor is forced to sell that item to satisfy the estate’s debts.
Co-Executors and the Dilemma of Shared Duty
Parents often name two or three children as co-executors, assuming it forces collaboration and prevents any one child from feeling left out. From a compensation standpoint, this introduces a new layer of arithmetic and potential friction.
If the probate estate is valued at less than $100,000, co-executors must split a single commission. If the estate is valued at $100,000 or more, New York law allows for up to three full commissions. Two executors would each receive a full commission. Three executors would each receive a full commission. If a will names four or more executors, the total value of three full commissions is apportioned equally among them.
I frequently advise clients to think carefully before naming multiple executors. Not only does it drain the estate’s financial resources through duplicate commissions, but it creates heavy administrative drag. Every check requires multiple signatures. Every decision requires consensus. This often turns a straightforward process into a bureaucratic ordeal.
To Accept or Waive the Commission?
Just because you are entitled to a fee does not mean you must take it. Many executors choose to waive their commission entirely. Why turn down money?
Taxes.
Executor commissions are considered ordinary income, subject to federal and state income tax. Inheritances, by contrast, are generally income-tax-free to the recipient. If you are the sole beneficiary of an estate, taking a $34,000 commission means paying income tax on that money out of your own pocket. Inheriting that same $34,000 as part of the residuary estate costs you nothing in income tax.
Taking the commission generally makes the most sense when you are one of several beneficiaries doing the entirety of the work. In that scenario, your siblings are effectively paying you for your time, labor, and fiduciary risk out of the general estate funds before final distributions are made.
Before you begin drafting checks from an estate account—or if you are currently writing your own will and want to understand how administrative fees will impact the wealth you leave behind—we should review the exact numbers. Request a fiduciary fee analysis with our office to project the statutory commissions and structure your estate to eliminate unnecessary administrative waste.
