An executor (also known as a personal representative) does a lot during probate, from locating and protecting estate assets to paying debts, filing court documents and distributing inheritances to beneficiaries. It can be a time-consuming role involving significant responsibility, and it’s only fair that they are compensated for their efforts.
That said, how much should an executor be paid? Disputes can arise when fees appear excessive or when an executor takes more from the estate than beneficiaries believe is justified. Understanding how executor compensation works can help you distinguish between fair payment and potential misconduct.
The law in Nevada
Under Nevada probate law, executors are generally entitled to reasonable compensation for the work they perform during probate. If the will does not specify the amount or if the executor chooses not to accept the amount listed, the law provides a statutory fee structure based on the estate’s net value.
These guidelines also apply when a person dies without a will. They are:
- 4% of the first $15,000 of the estate
- 3% of the next $85,000
- 2% of any amount exceeding $100,000
If there’s more than one executor, the probate court will divide the compensation among them according to the work each actually performed. It’s also worth noting that the court may approve additional compensation if the standard fee schedule does not reasonably reflect the time, effort or complexity involved in administering the estate.
Challenging improper acts by an executor
An executor shouldn’t pay themselves unreasonably high fees, charge the estate for tasks that were never performed or engage in self-dealing or other forms of financial misconduct.
If you suspect that the executor of a loved one’s estate is taking excessive fees or otherwise mismanaging the estate, it’s important to take swift action. Your inheritance might be at risk if you wait too long or assume they are acting in good faith. Seeking experienced legal guidance can help you contain the situation and help ensure that the estate is administered properly, fairly and in accordance with the law.