Having your Solicitor as the Executor of your Will ensures their expertise in dealing with the matter in a timely and effective manner. Further, their neutral position ensures your Estate is distributed in accordance with your last wishes, thus reducing the chances of any potential family drama.
Most people ask a family member or close friend. You can also appoint a lawyer, a notary public, or a private trust company as executor. The Public Guardian and Trustee may agree to be appointed executor in some circumstances. You can appoint two or more people to act as your executors.
How much are executor fees? Executors can be paid a flat fee, an hourly rate, or a percentage based on the gross value of the estate. When the fees are based on the estate value, they are usually tiered — like 4% of the first $100,000 of the estate, 3% of the next $100,000, and so on.
No, your executor does not need to be a lawyer, nor do they need to hire one. But they should be a responsible person that you trust and able to make decisions for the benefit of your estate and beneficiaries.
There is no specific amount of commission an Executor is entitled to. However, the court will typically award a commission in a lump sum or percentage of the estate. Here is an estimate of the ranges: 0.25% to 1.25% of the value of transferred assets.
Some probate specialists and solicitors charge an hourly rate, while others charge a fee that's a percentage of the value of the estate. This fee is usually calculated as between 1% to 5% of the value of the estate, plus VAT.
Executor's fees are given in terms of the administration of deceased estates act. Currently the fee is 3.5% on the gross value of the estate. This is the fee the executor charge to wind up the estate of a deceased person.
Many executors and administrators act without a solicitor. However, if the estate is complicated, it is best to get legal advice. You should always get legal advice if, for example: the terms of a will are not clear.
Where the executor has not paid the legacy to the beneficiary within 12 months from the date of death, the beneficiary is entitled to claim interest until the legacy is received.
Inheritance Claims
As this type of inheritance act claim must be made within six months of probate being granted, solicitors often hold onto money owned by the estate until this time-period has elapsed. This ensures the estate has the assets required should an inheritance act arise.
What are the powers of the executor of a Will? Executors carry a heavy burden when someone dies. Not only are they required to manage the estate, but must also plan the funeral, cancel credit cards, gather documentation, and hire lawyers and financial planners who can help them crawl out of the administrative gutter.
Wait Six Months (or sometimes longer)
By law the Executor has to hold onto estate assets for six months from the date Probate is granted, and cannot pay out any money to the beneficiaries before this time is up.
People usually designate one person to serve as the executor of their will, but it is also possible to designate two or more co-executors. Most lawyers advise that one executor is best, as it avoids potential disputes, but there are situations where it may make sense to appoint co-executors.
In many cases, a trusted beneficiary with business skills and/or integrity is seen as a suitable executor. These kind of executors are entitled to an executor's fee and also an inheritance from the estate.
An Executor who finds that the beneficiaries are suspicious of him, despite no wrongdoing, is free to voluntarily file a formal accounting to prove that the books are in order and the proposed distributions are correct. Either way, a formal accounting is a unique, self-contained action in the chancery court.
Typically, asset holders do not require Probate where an asset has a value of less than $50,000, however, sometimes the threshold is $20,000.
Simple estates might be settled within six months. Complex estates, those with a lot of assets or assets that are complex or hard to value can take several years to settle. If an estate tax return is required, the estate might not be closed until the IRS indicates its acceptance of the estate tax return.
If you inherit a property and later sell or otherwise dispose of it, you may be exempt from capital gains tax (CGT). The same exemption applies if you are the trustee of a deceased estate.
Most estate planning attorneys take on the responsibility of holding their clients' original wills and other documents. They do this for two reasons. First, they are often better equipped to keep the originals safe where they can be found when needed.
Having a solicitor assist you with probate is, therefore, the simplest and most effective way to take some of the burden of responsibility off your shoulders and give you peace of mind that you are correctly carrying out your duty to the deceased and their beneficiaries.
Certain assets do not attract executor fees such as: Insurance policies with a beneficiary nomination (unless the policy is paid to the estate) Policies where the deceased is not the owner and the proceeds are not payable to the estate. Usufructs enjoyed by the deceased prior to death.
Fortunately, with a bit of planning, you can reduce some of the costs involved by negotiating the executor's fee with your appointed executor when you draft your will. You should then stipulate this fee in the will or ask the executor to confirm the agreed fee in writing.
Since every estate is different, the time it takes to settle the estate may also differ. Most times, an executor would take 8 to 12 months. But depending on the size and complexity of the estate, it may take up to 2 years or more to settle the estate.