Texas Executor Fee Calculator
In Texas, an estate executor is legally entitled to compensation from the estate for the work they do to settle the estate. By state law, the executor should receive at least 5% of all assets transferred into and out of the estate during probate. Use the calculator below to estimate fees for your family’s estate.
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Texas Executor Fee Calculator – Input Guide
This calculator helps determine a reasonable executor fee based on guidelines from the Texas Estates Code. Executor compensation is typically up to 5% of all cash received and paid out by the estate, excluding exempt items. The court may also consider special circumstances like business management or unusual efforts when approving compensation.
Please input the following into the calculator:
Total Cash Received by the Estate
Include all incoming estate funds such as account transfers, sale proceeds, and collected debts.
Exclude exempt assets like life insurance payouts, joint accounts with survivorship rights, and payable-on-death accounts.
Total Cash Paid Out by the Estate
Include all disbursements made by the executor to creditors, vendors, taxes, and administrative expenses.
Exclude direct distributions to heirs (those are captured separately).
Gross Fair Market Value (FMV) of the Estate
Provide the total value of all estate assets at the time of death (e.g., real estate, investments, vehicles).
Cash on Hand at Death
Report the amount of cash the decedent had in bank or brokerage accounts at the time of death.
This is excluded from the executor fee calculation.
Life Insurance Proceeds Collected
Include life insurance proceeds received by the estate or beneficiaries.
Direct Distributions to Heirs or Legatees
Include amounts distributed directly to heirs that were not paid as part of the estate’s general disbursements.
Additional Considerations
Court-Approved Expenses
Enter any extraordinary expenses that were approved by the court, such as litigation or asset recovery costs.
This may influence court judgment but is separate from executor compensation.
Attorney’s Fees
Report the total amount of attorney’s fees paid by the estate.
This may influence court judgment but is separate from executor compensation.
Did the Executor Manage a Business?
Answer Yes or No. If the executor managed an active business owned by the estate, this may qualify for enhanced compensation.
Were Unusual Efforts or Alternate Compensation Requested?
Answer Yes or No. Indicate if the executor performed unusual or extraordinary work, or if a non-standard compensation arrangement is being proposed.
Once all fields are completed, click “Calculate” to determine the estimated executor fees based on the provided estate information.
How the Fees are Calculated
Calculation | Value Amt | Fee |
---|---|---|
4% of the first $100,000 | ||
3% of the next $100,000 | ||
2% of the next $800,000 | ||
1% of the next $9,000,000 | ||
.5% of the next $15,000,000 |
Enter Total Value Of Assets
Total Fees
Enter Total Value Of Estate
Total Fees
Overview of Executor Compensation in Texas
An executor plays a crucial role in the administration of an estate, fulfilling several responsibilities. This role may take several months to a couple of years to complete, which means that the executor must dedicate considerable time and effort to fulfill their responsibilities. In Texas, an executor has a legal right to reasonable compensation for the work they conduct.
In the state, the executor is entitled to 5% of all amounts they receive or pay out in cash throughout the administration of the estate. This amount should not exceed 5% of the estate’s gross value. Our Texas executor fee calculator helps you prepare for what expenses you might expect prior to receiving approval at the court’s discretion.
Why Executor Fees Are Necessary
An executor handles many crucial responsibilities in the administration of an estate, and carrying out all the necessary functions is often a significant time commitment. Many of these responsibilities involve complex financial and legal tasks that require dedication and tact to complete.
Some of these tasks include:
- Marshaling and inventorying assets
- Paying debts
- Selling assets
- Filing taxes
- Protecting estate investments
- Distributing assets to beneficiaries of the estate.
Compensation in the form of executor fees helps ensure that executors are not overly financially burdened and receive fair payment for the work they put into fulfilling their responsibilities. Financial compensation also helps verify that the sensitive nature of this role receives the careful attention to detail that it deserves so that the executor can act responsibly and in the best interests of the estate.
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What Assets and Transactions Are Included in the Calculation?
For an accurate calculation, it’s important to understand which assets and transactions are included in the 5% value and which are not based on state statute. Based on Texas Estate Codes, this calculation accounts for both cash received by the estate and cash paid out by the estate.
Together, the included assets and transactions are:
- Sale of property
- Estate income
- Tax refunds to the estate
- Debt payments from the estate
- Tax payments by the estate
Meanwhile, assets not included in the base calculation are those that already have identified beneficiaries or do not have to pass through probate, such as:
- Life insurance proceeds payable to a named beneficiary
- Cash on hand or stored in a financial institution at the time of death
- Direct distributions to heirs
- Exempt property, like those with joint owners
The total fair market value (FMV) of the estate will also be considered as an important part of the calculation, as 5% of this value will serve as the statutory limit for the executor commission. The court may also approve a greater payout for the executor in cases that involve complex work, such as farm, ranch, or other business management, which should be later factored into the original estimate.
Steps by Step Guide: How the Texas Executor Fee Calculator Works
The Texas Executor Fee calculator works by adding all total cash received and paid out by the estate. Then, once the fee is accounted for, this amount will be compared to the statutory limit to guide the proper payout for the estate. Our calculator does all of this work for you.
Our calculations take the following steps:
Step 1:
Adding total cash received + total cash paid out by the estate
Step 2:
Multiplying the total of the estate by 5%
Step 3:
Calculating 5% of the gross estate Fair Market Value, which will serve as the statutory cap of the fees
Step 4:
Using the lesser of the two amounts to proceed
Step 5:
Adding any court-approved extraordinary compensation
An important note: The court may approve additional expenses and attorney’s fees, which are optional additions to the overall fees. If this is the case, then these can be added to the standard amount provided by the calculator.
Example Executor Fee Calculation
The following example calculation demonstrates how our calculator works for an estate, given an estate with the details below:
First, the estate would have a gross fair market value of $1,100,000, because $100,000 in on-hand cash is excluded from the total $1,200,000 based on Texas laws. Thus, the statutory cap for the estate would be 5% of $1,100,000, or $55,000.
To calculate the total commission, you will need to account for all income received in addition to all expenses paid out. In this case, this will require adding $400,000 + $150,000, for a total of $550,000. Then, 5% of $550,000 is $27,500. Because $27,500 is below the statutory limit of $55,000, this will be the approved executor payout.
However, the executor is also entitled to payment for court-approved estate expenses and estate administration attorney fees. In the above case, the executor paid $8,000 + $12,000 respectively, adding an additional $20,000 to the final payout.
This total breakdown provides a final total of $47,500.
*In a case where an executor managed a business, the court may approve an amount higher than a 5% fee to account for the added complexities. This amount would be added onto the $47,500.
- Total assets: $1,200,000
- On-hand cash: $100,000
- Income received by the estate: $400,000
- Total expenses paid out from the estate: $150,000
- Court-approved expenses: $8,000
- Attorney’s fees: $12,000
How to Use the Texas Executor Fee Calculator
To use our executor fee calculator, you should start by gathering all the necessary information you will need to complete the calculator.
Optional values include assets like life insurance policies, cash on hand, and assets owned jointly by other beneficiaries. The calculator will exclude these values from the end result, but they may be beneficial to include for your own accounting purposes.
Once you plug in all these values into the calculator, the result will then provide you with the standard fee based on Texas state law. However, this number could be higher if the court finds that the work conducted by the executor was above and beyond the typical responsibilities of the role, such as is the case when managing a business.
Keep in mind that the executor fee provided by our calculator is only an estimate based on the numbers you provide—the final fee will have to be approved by the court.
The following values are most necessary:
- Total values for cash received by the estate
- Total values for cash paid out
- Gross fair market value of the entire est
Why Choose RMO Lawyers for Texas Probate and Executor Disputes
Whether you are facing questions about how to administer an estate or disputes exist between multiple parties surrounding executor compensation, the team at RMO may be able to help. With a skilled team of attorneys in both Dallas and Houston, RMO is well-equipped to support our Texas clients with an empathetic, person-first approach to every case that brings results sooner.
If disputes arise in the process, the team of probate estate litigation attorneys at RMO is well-equipped to handle them, minimizing stress, protecting legacies, and preserving the best interests of the family. With decades of experience in probate estate administration, we have a deep understanding of the intricacies of Texas probate laws that influence the administration process and probate disputes.
Schedule a consultation with our team at RMO to begin discussing your case.
FAQs About Texas Executor Fees and the Calculator
What is the standard executor fee in Texas?
The standard executor fee in Texas is 5% of the total value of all assets and transactions involving the estate. For example, if the estate received $125,000 in assets and paid out $75,000, then the executor’s compensation would be 5% of the total $200,000, or $10,000.
Can an executor be paid more than 5%?
The probate court can decide to pay an executor more than 5% of the share of an estate if the court deems the compensation to be unreasonably low under Texas Estate Codes Sections 352.003 and 352.002. For example, if an executor is responsible for managing an estate that also features a business, the court may approve a higher payout to account for the added responsibility.
What happens if beneficiaries dispute the executor’s fee?
If beneficiaries dispute the executor’s fees, the court can decide to override the executor’s fees if it finds the executor to have failed to execute their duties properly. Under Texas Estates Code Section 352.004, the court can rule to either partially or fully deny compensation to the executor if the court finds that the executor has failed to prudently manage the estate property or if they were removed from their role.
Does the executor have to accept compensation?
No, an executor does not have to accept compensation. An executor may choose to waive their fee if they wish to leave those assets to the overall value of the estate instead. This is more common in cases where the executor is a close friend or family member to the deceased.
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