Executors can apply to the Supreme Court for a payment for their “pains and troubles”. This payment is called commission.
Commission is awarded at the discretion of the Court and based on the complexity of the estate and the value of the assets.
Commission is normally around 2% of capital realized.
If an executor receives a legacy under the will, this is presumed to be sufficient recompense.
To obtain commission, the executor must file estate accounts with the court and affidavits detailing the administration of the estate. This can be costly and can delay the distribution of the estate, so it is advisable for an executor to attempt to negotiate a reasonable commission with the beneficiaries of the estate before seeking an order of the court.
If you appoint an executor who is not a beneficiary, consider gifting them a legacy in lieu of commission to avoid disputes and additional costs to your estate.
If an executor is a solicitor, the solicitor has an obligation to inform the will-maker of their ability to claim commission, in writing, prior to the making of the will.
If you would like Manny to address a particular legal issue, send your request to manny.wood@ticliblaxland.com.au
This article is intended to be for information and educational purposes only and cannot be relied upon as legal advice. The information may not apply to your circumstances or to your particular situation. If you need specific advice or you have any questions, we welcome you to contact us directly.
