How Much Does Executor Get Paid in Virginia
Do Executors Receive Compensation in Virginia?
How much does an executor get paid? This is a common question asked by persons who have been appointed executors. In Virginia, executors receive reasonable compensation based on the value of the estate. The standard rate is 5% of the first $400,000, 4% of the next $300,000, 3% of the next $300,000, and 2% of amounts over $1 million. For example, an executor managing a $700,000 estate would receive approximately $32,000.
The Commissioner of Accounts approves all executor fees. Compensation may vary if specified in the will or if extraordinary circumstances apply.
Being named an estate executor means handling someone’s final affairs; managing accounts, selling property, and filing court documents. At Kevin C. Martin, Attorney at Law, PLLC, we help executors understand their compensation rights and navigate Virginia’s probate requirements.
Virginia’s Legal Framework for Executor Compensation
Virginia Code § 64.2-1208 entitles executors to reasonable compensation for estate administration services. The law doesn’t set a fixed rate; instead, fees are evaluated on a case-by-case basis and approved by the Commissioner of Accounts.
How Much Do Executors Get Paid in Virginia?
The specific amount an executor may receive largely depends on several factors, including:
If the Will Mentions a Specific Fee Figure
If the decedent’s will specifies how much the executor should be paid, that is typically the exact amount the executor is entitled to receive.
However, if the will provides for hourly compensation, the reasonableness of the hours, activities, and total fee will be reviewed by the Commissioner.
If the Will is Silent on Fees
If the will is silent on executor compensation, the Commissioner of Accounts generally applies a standard tiered schedule based on the probate assets’ value:
- 5% of the first $400,000
- 4% of the next $300,000
- 3% of the next $300,000
- 2% of amounts over $1 million.
For estates exceeding $10 million, compensation is determined by agreement with the Commissioner.
Additionally, the executor may receive 5% of the income earned by the estate during each accounting period, excluding capital gains.
Calculating Executor Fees Following the Commissioner’s Guidelines
Certain assets are excluded when calculating executor fees, including:
- Non-Probate Assets: Life insurance proceeds, retirement accounts, or jointly held property that pass directly to a beneficiary are excluded.
- Real Estate: Unless the executor is tasked explicitly with selling or managing real estate, its value is not included.
To calculate your specific fee, it’s essential to correctly identify excluded assets, know the value of included assets, and apply the guidelines accordingly.
Example:
For an estate with $700,000 in probate assets and $20,000 in estate income, compensation according to the guidelines is calculated as follows:
- 5% of $400,000 = $20,000
- 4% of the next $300,000 = $12,000
- 5% of $20,000 income = $1,000
Total Compensation: $33,000
The calculated amount must still be submitted to and approved by the Commissioner of Accounts.
If There’s More Than One Executor
When there are co-executors, the fee of one executor, whether specified in the will or calculated using the above guidelines, is typically divided equally between them. However, if the co-executors agree, a different division method may apply.
If there is a primary executor and a successor executor, compensation is prorated between them by the Commissioner.
When Executors Outsource Their Duties
If an executor hires a professional, such as an attorney or accountant, to perform their statutory duties, those professional fees will be deducted from the executor’s allowed compensation.
However, reasonable fees paid for tax work, litigation, or other necessary legal services generally are allowed in addition to the executor’s fee. Similarly, reasonable fees for investment advisors hired by the executor typically are not deducted from the executor’s compensation.
Can the Commissioner Adjust Fees?
In exceptional circumstances, the Commissioner may increase or decrease compensation based on:
- Nature of the assets
- Complexity of the work
- Difficulties encountered
- Time and expertise required
- Responsibilities and risks assumed
When Executors Forfeit Their Fees
Under Virginia Code § 64.2-1217, executors forfeit compensation if they:
- Fail to file a complete annual account within four months after the year-end
- Omit assets that should have been reported
This forfeiture applies automatically unless the Commissioner allows fees for good cause or the circuit court overturns the decision upon review.
Get Help Understanding Your Executor Compensation
Executor fees in Virginia are more than just a benefit. They’re a legal recognition of the time, effort, and responsibility involved in managing someone’s estate. But earning and securing that compensation isn’t automatic. Executors follow strict reporting rules, meet deadlines, and act in full compliance with Virginia law to avoid delays, disputes, or even forfeiture of their fees.
At Kevin C. Martin, Attorney at Law, PLLC, we help Virginia executors understand their rights, meet their obligations, and navigate the complexities of the probate process with clarity and confidence. Whether you’re planning to serve or are already appointed, we’re here to protect your role — and the compensation you’re entitled to.
Schedule a consultation today to ensure your executor’s duties are fulfilled properly and your fees are preserved.
Common Questions About Virginia Executor Fees
What if Beneficiaries Disagree with the Executor’s Requested fees?
Virginia courts have the final say if a dispute arises. If a beneficiary objects, the executor may need to justify the amount based on hours worked, management duties, and other relevant factors. Thorough documentation is essential.
What is a Reasonable Hourly Rate for an Executor?
Virginia doesn’t set a standard hourly rate for executors. If the will provides for hourly compensation, the Commissioner of Accounts reviews the reasonableness of the hours, activities, and total fee before approval.
Do Executors Who are Beneficiaries Get Paid?
Yes, executors who are also beneficiaries are entitled to receive executor fees in addition to their share of the inheritance. They can choose to serve without compensation, but Virginia law allows them to claim reasonable fees for their services.
What is the Maximum Executor Fee?
Virginia doesn’t cap executor fees at a specific maximum amount. Compensation is based on a tiered percentage schedule for the estate’s value; however, the Commissioner of Accounts can adjust fees based on the complexity and circumstances of the estate administration.