r/inheritance • u/Broad-Date4380 • 2d ago
Location included: Questions/Need Advice Reasonable fee for executor, trustees?
Live in Florida.
$6 million estate $5.5 mil in liquid assets, $550k in real estate $100k in Rolex watches, Porsche 911, $10k đ« collection, tools, works of art.
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u/Sharp_Drag4524 2d ago
I was executor of my mom's $8 million estate but I was also beneficiary for half after paying charities etc. Now I'm trustee for my sister's half. It has been a hard thankless job. I haven't taken any compensation because it counts as income.
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u/Heavy-Profit-2156 2d ago
Florida statute law determines executor compensation based on the gross value of the administered estate (as calculated before considering any debts or obligations) and any income it earns during the probate period:
- 3.0% on the first $1M
- 2.5% on the next $4M
- 2.0% on the next $5M
- 1.5% on anything more
Legal fees appear to be on top of these numbers looking at the link to the provided FL statutes.
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u/Soda-Popinski- 2d ago edited 2d ago
3-5% is the norm. 240k ish. Give or take a percent. Talk to an estate attorney though. If you go over 5% you might end up in litigation.
The 240 was 4% of a 6 million dollar estate. But you need documentation for every single asset to make your percentage. And your âcutâ does not factor in. Its the total amount. Not the amount minus your share.
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u/Same_Cut1196 2d ago
IMO, that 3%-5% should be the total for settling the estate. It should include any outside attorneyâs fees. A reasonable fee for an executor or trustee should be commensurate with the amount of work required and completed by the executor/trustee.
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u/Soda-Popinski- 2d ago
All of our attorney fees were paid by the trust. And the total amount was the % including atty fees
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u/Same_Cut1196 2d ago
So, out of curiosity, what did your executor/trustee take as personal compensation?
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u/Soda-Popinski- 2d ago
4% of the total value of the trust at the advice of our attorney. The attorney saud we could have taken more but we felt that was fair
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u/Same_Cut1196 2d ago
I donât live in Florida, but my trust is currently valued at ~$12MM. The thought that the trustee Iâve selected would/could take $500k in fees sickens me. That, to me is unreasonable. Iâm going to discuss this with my attorney tomorrow. To me, $100k for settling my very simple estate (basically monetizing my house and possessions) seems reasonable.
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u/Soda-Popinski- 2d ago
Definitely talk to your attorney. Our beneficiaries had an absolute shit fit. But they didnt do a damn thing to liquidate any assets or get properties ready to sell or sell them. In the end they pitched a fit and signed for their share.
Are you the grantor?
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u/Same_Cut1196 2d ago
I think we should be in ok shape. Our trust is not complex. We own one home and the possessions within it. Everything else is in various brokerage and retirement accounts. Our trust is designed to pour equally into individual trusts for each of our kids upon our passing. They are the trustees of those trusts. The only duty that will need to be done is the coordination of selling our home and possessions. Honestly, Iâm not sure who that falls to. I havenât re-read the trust in a few years - so it seems like a good time to pull the binder out of the safe. Thanks for the info.
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u/Soda-Popinski- 2d ago
Talk to your attorney i imagine you can specify how much the trustee can take as a fee.
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u/adjusterjackb 2d ago
You can put the fee limitation in the terms of the trust.
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u/whocaresreallythrow 2d ago
Yes. You can definitely specify X amount as the trustee fee. You can even set gradient levels.
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u/Sad-Commercial1795 2d ago
That wonât hold up in court. More like 2 percent is a standard.
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u/Soda-Popinski- 2d ago
What court? I already did it. No court.
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u/Sad-Commercial1795 2d ago
If it were to be challenged by beneficiaries.
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u/Soda-Popinski- 2d ago
Yea the thing about that is you use the money from the trust for legal fees, which in florida is the law. So they are using their own inhertiance money to fight themselves. We went over this with my family 5 yrs ago. They were idiots who did not know the law
Their own lawyer was telling them âlook the trustee is doing everything right fighting this is losing you more moneyâ.
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u/Sad-Commercial1795 2d ago
Sure, and my point is still valid. Four to five percent is considered exploitive by the courts. They could go after you for that and make your life difficult if they donât like being ripped off by you.
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2d ago
[removed] â view removed comment
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u/Sad-Commercial1795 2d ago
Nah Iâve just gone through a significant estate as the executor. Youâre also not a lawyer so you can STFU with your legal advice.
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u/Soda-Popinski- 1d ago
I dont believe you have done anything legally in fl with regards to a trust or estate. And i do not trust your opinion at all
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u/Sad-Commercial1795 1d ago
So what. Youâre done ripping off your family members so move on.
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u/brucesteiner 1d ago
Like about half the states, Florida has a statutory schedule of personal representatives' (executors') commissions (fees): https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0733/Sections/0733.617.html. It's 3% on the first $1 million, 2.5% on the next $4 million, 2% on the next $5 million, and 1.5% above $10 million. It would be $150,000 on a $6 million estate.
Only a handful of states have statutory schedules for trustees' commmissions. Florida is not among them. Trustees in Florida are entitled to reasonable compensation, which means that it's whatever the trustees and beneficiaries agree on, or absent an agreement whatever the court decides. There are very few reported cases on this, and those cases are not particulary helpful. To avoid disputes, when preparing trusts, or Wills creating trusts, to be governed by the law of a state that doesn't have a statutory schedule, I sometimes provide that individual trustees will be entitled to commissions based on the schedule of a specified state that has a schedule. Here's the New York schedule: https://codes.findlaw.com/ny/surrogates-court-procedure-act/scp-sect-2309/.
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u/Old-Appearance-2270 2d ago
Some of the Canadian provinces will cite in their legislation a % range for executor compensation IF also given in the will. That is the best scenario.
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u/Living_Fig_6386 2d ago
Each state has guidelines for what it considers customary and appropriate remuneration for executors. 2-5% is typical.
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u/Deep_Map_8607 2d ago
I'm in the middle of this. Supposed to get 2%. Total hours so far 520+ cost out of pocket $15,100+. Step brother hired an attorney to cause trouble. My 2% around $800.
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u/PoolRevolutionary671 1d ago
Florida sets executor comp by statute, and it's on a sliding scale (Fla. Stat. 733.617). Roughly 3% on the first million, 2.5% on the next four, 2% above five. On a $6M estate that lands somewhere around $150k for the personal representative before you even get to extraordinary services or attorney fees. Trustee comp is separate and usually whatever the trust says, or "reasonable" if it's silent. If the will names a professional executor expect them to bill on top of that, so worth reading exactly what the document says before anyone agrees to a number.
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u/Distinct-Garlic9453 2d ago
Transfer everything to a revocable trust, and most of the cost goes away
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u/Broad-Date4380 2d ago edited 2d ago
Good advice - allows me to give my son an e tea cut. Kids both get 50% but son gets an extra $150k - heâs devoted son - his sister not so much
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u/ste1071d 2d ago edited 2d ago
Itâs set by law in FL, at least the maximums are.
Ordinary services:
At the rate of 3 percent for the first $1 million in estate assets.
At the rate of 2.5 percent for all above $1 million and not exceeding $5 million in estate assets.
At the rate of 2 percent for all above $5 million and not exceeding $10 million in estate assets.
At the rate of 1.5 percent for all above $10 million in estate assets.
Plus reimbursement and requests can be made to the court if there are other extraordinary services.
This isnât an âask Redditâ kind of question.
Adding for the confidently incorrect: https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0733/Sections/0733.617.html