Executor Resources

Executor Compensation in New York

An executor can generally receive payment for administering a New York estate, even when the executor is a family member or also inherits under the will. This compensation is usually called an executor’s commission. New York uses a graduated statutory schedule, but calculating the payment involves more than applying a percentage to everything the deceased person owned. The will, the assets administered, the number of executors, and the payment process all matter. For families in Buffalo and Western New York, discussing compensation early can help prevent misunderstandings about what the executor receives and how it affects the remaining inheritance. NYSenate.gov

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What’s on This Page

New York executor commission rates
Assets included in the calculation
Payment timing and documentation
Taxes, expenses, and legal fees
Common executor compensation situations
Executor compensation FAQs

New York Executor Commission Rates (last updated 10/22/2026)

SCPA § 2307 establishes the following graduated schedule:

Commissionable amount rate:

First $100,000 > 5%
Next $200,000 > 4%
Next $700,000 > 3%
Next $4,000,000 > 2.5%
Amount above $5,000,000 > 2%

Each rate applies only within its bracket. The combined rates cover receiving and paying out; they are not charged in full twice. NYSenate.gov

Assets Included in the Calculation

The commission base is not necessarily the deceased person’s total wealth or the taxable estate.

Specifically bequeathed or devised property is generally excluded under the statute. Real estate requires analysis of how it passes and is administered. Multiple executors and compensation provisions in the will can also change the result. NYSenate.gov

Before calculating payment, organize:

The will and any codicils
The court appointment documents
Asset ownership and beneficiary information
Records of property collected, sold, or distributed
Any compensation agreements or prior payments

Do not assume that locating paperwork for an account means its value belongs in the calculation. Have the estate’s attorney identify the appropriate treatment before relying on an online calculator or making a payment.

Payment Timing and Documentation

An executor should not treat access to the estate bank account as permission to pay themselves.

Coordinate compensation with the accounting

The accounting and settlement process should clearly identify the proposed commission, its calculation, and any payments already made.

An estate may be settled through appropriate informal accounting documents or a judicial accounting, depending on the circumstances. Beneficiaries should receive the information needed to understand the proposed settlement before signing releases. nycourts.gov

Advance payment requires a proper process

New York provides court procedures for requesting payment on account of commissions before final settlement. SCPA §§ 2310 and 2311 address different application procedures and conditions.

An executor considering an early payment should obtain advice before withdrawing money. A rough estimate of the eventual commission is not a substitute for authorization. NYSenate.gov

Keep the payment traceable

Maintain a written calculation and identify compensation separately from expense reimbursements and beneficiary distributions. Record the date, amount, and basis for each payment.

Clear records are particularly helpful when the executor is also receiving an inheritance: the accounting should explain which payments represent compensation and which represent distributions.

Taxes, Expenses, and Legal Fees

These payments serve different purposes and should not be combined into one unexplained withdrawal.

Executor compensation is taxable income

The IRS requires personal representatives to include estate-paid fees in gross income.

A person handling a relative’s estate is not automatically subject to the same reporting treatment as a professional executor. Self-employment treatment can depend on whether serving as executor is a trade or business and whether the executor actively operates an estate business.

Discuss reporting and any estimated tax obligations with a tax adviser before payment. Internal Revenue Service

Expense reimbursement is separate

Reasonable, necessary expenses actually paid may be reimbursable separately from commissions. Keep receipts and obtain advice about questionable items. NYSenate.gov

For example, document an estate-related invoice you paid personally rather than simply increasing your commission withdrawal. Travel, mileage, meals, and other mixed-purpose expenses should be reviewed rather than assumed reimbursable.

Legal fees pay for legal services

Hiring an attorney and serving as executor involve different work. Ask for an explanation of each proposed charge so the estate records distinguish professional services from executor compensation.

When the will’s drafting attorney, an affiliated attorney, or certain employees are named executor, SCPA § 2307-a imposes disclosure requirements. Failure to obtain the required acknowledgment can reduce commissions. Attorney-executor arrangements deserve review before payment. NYSenate.gov

Common Executor Compensation Situations

The following examples are illustrative rather than accounts of particular client matters.

One sibling does most of the work

One child coordinates the bank records, house maintenance, and professional appointments. Other beneficiaries question why that child should receive compensation in addition to an inheritance.

Discuss the proposed calculation early. Separating compensation from inheritance—and showing the supporting figures—can make the conversation more productive than debating who “deserves more.”

Two executors assume they split one commission equally

Co-executors should obtain a calculation specific to their situation. New York has special multiple-fiduciary rules; an equal division of one commission is not always correct. NYSenate.gov

Clarify responsibilities, maintain shared records, and discuss compensation before making promises to each other or the beneficiaries.

The executor lives outside Western New York

An executor travels to Buffalo to address an inherited house and pays several expenses personally.

Keep a separate expense log with receipts and descriptions. Review reimbursement independently from commissions. Being busy, traveling, and paying estate bills are different considerations that should not be collapsed into an informal hourly charge.

The executor wants to waive payment

An executor who also inherits may prefer to decline compensation.

Discuss the decision with legal and tax advisers before payment and document any waiver properly. Compare the personal tax consequences, the effect on other beneficiaries, and the estate’s circumstances rather than assuming one choice is always better.

Executor Compensation FAQs

Can an executor receive both an inheritance and compensation?

Generally, yes. They represent different things: the inheritance arises under the estate plan, while compensation relates to administration. Review the will and proposed accounting before payment.

Is executor compensation always 5%?

No. The standard schedule is graduated. Five percent applies only to the first bracket, and determining the commissionable base is a separate step.

Can an executor charge an hourly rate instead?

Do not assume so. Review any compensation provision or agreement with the estate’s attorney before substituting an hourly charge or adding one to a commission. Keeping a work log does not itself authorize hourly payment.

Can beneficiaries question the proposed commission?

Yes. They can ask for the calculation and raise concerns through the appropriate accounting or court process. Identify the disputed assets, figures, payments, or conduct rather than relying solely on a general objection to compensation.

Does hiring a lawyer eliminate the executor’s responsibilities?

No. An executor remains a fiduciary even when professionals assist. The executor should stay informed, supply records, and understand decisions and payments made during administration. www.nycourts.gov

Guidance on Executor Compensation in Western New York

Questions about compensation often arise when an estate is nearly ready for distribution—after months of work and before beneficiaries understand the proposed deductions.

Eldon Trust & Estate Law helps executors and families review compensation questions alongside the estate’s assets, records, accounting, and remaining obligations.

Schedule a consultation to discuss executor commissions, reimbursements, or a proposed estate accounting.

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