Things can get rather complicated when it comes to handling matters regarding a person’s estate. In fact, even if you do everything right, the entire process can still take months (sometimes even years). This is why it’s vital to do everything you can to make this process easier for all parties involved. Luckily, you can hire executors to help administer an estate.
Now, hiring an executor is completely unlike anything you’ve done before. Executors are entitled to their pains and troubles while administering an estate. This is the executor’s commission and the amount paid differs depending on the situation. If this is your first time encountering this information, then we’ve got something that will help get you up to speed. Here is a brief discussion on everything that you need to know about executor’s commissions.
What is Executor’s Commission?
Due to the amount of work required from the executors, they are generally entitled to a commission due to the time and effort they’ve invested throughout this entire process. This commission is paid as a lump sum and is separate from any other benefit from a will.
Who Decides How Much Executors Get?
Executors’ entitlement to claim commission stems from legislation that is recognised in many of the states in Australia. The following sections detail this in full:
- Section 68 Succession Act 1981 (Qld)
- Section 86 Probate & Administration Act 1898 (NSW)
- Section 65 Administration & Probate Act 1958 (Vic)
As we’ve already mentioned, the amount isn’t set and will depend on the estate. The commission is dependent on the corpus of the estate. Corpus refers to the assets of the estate subtracted by all the liabilities. Executors usually get around 1-3% of the corpus of the estate. Aside from this amount, executors may also earn up to 6% of income earned during the estate administration process.
How Do Executors Claim Commissions?
The first way executors can claim their commission is once the beneficiaries of the estate agree to their claim of commission. If done this way, the commission will be paid via an agreement. Take note that this agreement needs to be signed by all relevant parties.
Alternatively, executors can make a claim to the courts for an order that they receive a commission. This can lead to a rather arduous process so it would be best to attempt to arrive at an agreement before exploring this option.
Is Legal Advice Needed Before Putting a Claim for Commission?
If executors are able to arrive at an agreement then legal advice may not be necessary. However, if an executor is making a claim to the courts to demand that they receive a commission, then hiring a will and estate lawyer is the only option. Having professional legal assistance will go a long way when it comes to helping executors successfully claim their commission through the courts.
Conclusion
We hope this article has helped shed some light on the executor’s commissions. While this topic can get quite complicated, you should have enough information to navigate any issues you may have regarding these commissions. For more specific advice on this, it would be best to speak with a lawyer.
Hiring a reliable legal expert should save you plenty of potential legal altercations about your estate. At Springfield Legals, we keep our clients’ trust with the utmost respect in handling family-related business affairs. If you need to work with wills and estate lawyer in Ipswich, contact us today!