Executing an estate can take a considerable amount of your time. If you live out of the area, it will also require significant travel expenses.
While you may consider it an honor when someone asks you to execute their estate, you may prefer to spend your time and money in other ways. One question you may have is what expenses can you charge to the estate?
An executor can claim expenses and a fee
Nevada law clarifies that executors, also known as personal representatives, can claim back personal expenses incurred when carrying out their duties. It is crucial to keep receipts to prove those expenses.
Personal representatives are also entitled to receive compensation for the work they do. If the deceased person did not set out another payment arrangement in the will, then you must calculate the fee as a percentage of the value of the estate:
● 4% on the first $15,000
● 3% on the next $85,000
● 2% on anything over $100,00
If you have to carry out extra time-consuming tasks, you may be eligible for an increased fee. These tasks include selling property, dealing with the mortgage or running the deceased’s business until a court decides what happens to it. Dealing with litigation or complex taxes may also warrant a fee increase. It is up to a court to determine how much, so if you wish to claim this extra time, make sure you have evidence to show how much time you spent.
While the law sets out how estate executors can claim compensation for their role, it does not oblige you to take the fee. Before you decide on whether to charge or not, it is wise to find out more about what the probate process involves and how much of your time it will require.