Executor Fees California: How Much Does an Executor Get Paid?

One of the first questions people ask after being named executor is: "How much do I get paid?"

California law provides a clear answer: executors are entitled to statutory fees based on the gross value of the estate. For a $1 million estate, the executor fee is $23,000. For a $2 million estate, it's $43,000.

As a Glendale probate attorney who regularly advises executors, I've seen many people surprised by both how compensation works and the strategic decision of whether to take the fee or waive it.

This comprehensive guide explains exactly how California executor fees are calculated, the statutory fee schedule, when executors can request extraordinary compensation, tax implications of taking fees, and the strategic analysis of whether to waive compensation.

California's Statutory Executor Fee Schedule

California Probate Code Section 10800 establishes statutory fees that executors are entitled to receive.

The fees are NOT negotiable—they're set by law.

How Statutory Fees Are Calculated

Executor compensation is based on the gross value of the estate before debts.

Gross estate means:

• Total value of all probate assets
• Before mortgages and debts are subtracted
• Appraised value, not equity

Example: House worth $800,000 with $500,000 mortgage = $800,000 counted for fee purposes (not $300,000 equity).

California Executor Fee Schedule

Gross Estate Value	Executor Fee
First $100,000	4% = $4,000
Next $100,000	3% = $3,000
Next $800,000	2% = $16,000
Next $9,000,000	1% = up to $90,000
Next $15,000,000	0.5% = up to $75,000
Above $25,000,000	"Reasonable amount" determined by court

Fee Calculation Examples

$500,000 Estate:

• First $100K: $4,000 (4%)
• Next $100K: $3,000 (3%)
• Next $300K: $6,000 (2%)
• Total fee: $13,000

$1,000,000 Estate:

• First $100K: $4,000
• Next $100K: $3,000
• Next $800K: $16,000
• Total fee: $23,000

$2,000,000 Estate:

• First $100K: $4,000
• Next $100K: $3,000
• Next $800K: $16,000
• Next $1M: $10,000 (1%)
• Total fee: $33,000

$5,000,000 Estate:

• First $100K: $4,000
• Next $100K: $3,000
• Next $800K: $16,000
• Next $4M: $40,000 (1%)
• Total fee: $63,000

Quick Reference Fee Chart

Estate Value	Statutory Executor Fee
$250,000	$9,000
$500,000	$13,000
$750,000	$18,000
$1,000,000	$23,000
$1,500,000	$28,000
$2,000,000	$33,000
$3,000,000	$43,000
$5,000,000	$63,000
$10,000,000	$113,000

When Executor Fees Are Calculated

Based on Final Inventory Value

Executor fees are calculated based on the inventory and appraisal value filed with the court.

Timing:

• Inventory filed within 4 months of letters issued
• Values determined by probate referee
• Fees calculated on these appraised values

What's Included in Gross Estate

Counted toward executor fees:

• Real property (appraised value)
• Bank accounts
• Investment accounts
• Business interests
• Personal property
• Vehicles
• All probate assets

NOT counted:

• Joint tenancy property (passes outside probate)
• Life insurance with named beneficiary
• Retirement accounts with beneficiary
• Trust assets
• POD/TOD accounts
• Any non-probate assets

Importance of Accurate Valuation

Higher valuations = Higher fees

Example: House appraised at $900,000 vs. $1,100,000 = $4,000 difference in executor fee (2% of $200K difference).

Executors benefit from higher appraisals; beneficiaries benefit from lower appraisals (assuming no estate tax issues).

How Executor Fees Are Paid

From Estate Assets

Executor fees are paid from estate assets before distribution to beneficiaries.

Not paid by executor personally.

Timing of Payment

Two options:

Option 1: Advance payments

• Executor can request periodic payments
• Court approval required
• Must file petition showing work performed
• Typical: After major milestones completed

Option 2: Final payment

• Most common approach
• Fees paid as part of final distribution
• Court approves in final accounting
• Single payment at end of probate

Court Approval Required

California Probate Code Section 10830

Court must approve all executor compensation.

Process:

1. Executor files accounting showing fee calculation
2. Notice provided to beneficiaries
3. Court hearing
4. Judge approves fees
5. Executor receives payment

Objections: Beneficiaries can object if they believe fees are excessive or work wasn't performed.

Extraordinary Fees

Beyond statutory fees, executors can request extraordinary compensation for unusual services.

California Probate Code Section 10811

What Qualifies as Extraordinary

Services outside ordinary executor duties:

1. Litigation

   • Will contests
   • Creditor disputes
   • Beneficiary disputes
   • Defending estate lawsuits

2. Business Operations

   • Continuing decedent's business
   • Managing complex business interests
   • Business sales

3. Tax Issues

   • Complex estate tax returns
   • IRS audits
   • Tax litigation

4. Real Estate Complexities

   • Major property improvements
   • Environmental issues
   • Eviction proceedings
   • Property development

5. Out-of-State Property

   • Ancillary probate proceedings
   • Managing out-of-state assets

6. Family Disputes

   • Mediating complex family conflicts
   • Extensive communication with difficult beneficiaries

How Extraordinary Fees Are Calculated

No set formula. Court determines "reasonable" compensation based on:

• Time spent
• Complexity of work
• Results achieved
• Value added to estate
• Hourly rates for similar services

Typically: $150-$400/hour depending on complexity and executor's expertise.

Requesting Extraordinary Fees

Process:

1. Document extraordinary services performed
2. Track time spent (detailed records)
3. File petition for extraordinary compensation
4. Provide notice to beneficiaries
5. Court hearing
6. Judge determines appropriate amount

Burden: Executor must prove services were truly extraordinary and benefited estate.

Can Executors Waive Their Fees?

Yes. Executors can waive compensation entirely or partially.

Why Executors Waive Fees

Tax Strategy (Most Common Reason)

Executor fees are taxable income to executor. Inheritances are NOT taxable income to beneficiaries.

Example: Executor who is also beneficiary inheriting $500K. Executor fee would be $13,000.

Option 1: Take fee

• Receive $13,000 as taxable income
• Pay ~$4,500 in taxes (35% bracket)
• Net benefit: $8,500

Option 2: Waive fee

• $13,000 added to estate assets
• Inherits $13,000 more as beneficiary
• $0 taxes on inheritance
• Net benefit: $13,000

Savings by waiving: $4,500

When waiving makes sense:

• Executor is also a beneficiary
• Executor is in high tax bracket
• Estate is solvent (no creditor issues)

When waiving doesn't make sense:

• Executor is not a beneficiary
• Executor needs income now
• Executor performed extraordinary work
• Beneficiaries are causing problems

How to Waive Executor Fees

California Probate Code Section 10800

Process:

1. File written waiver with court
2. Include in final accounting
3. Court acknowledges waiver
4. Cannot later claim fees after waiving

Timing: Can waive at any time during probate or at final accounting.

Partial waiver: Can waive portion and take portion.

Multiple Executors: How Fees Are Divided

When multiple executors appointed:

Equal Division Default

California Probate Code Section 10801

Statutory fee is divided equally among executors unless court orders otherwise.

Example: $1M estate, $23,000 fee, two executors:

• Each receives $11,500

Unequal Division

Court can approve unequal division if:

• One executor did significantly more work
• Division is fair based on services rendered
• All executors agree to different split

Petition required to request unequal division.

When One Executor Waives

If one executor waives fees, the other executor can receive the full statutory fee (not split).

Example: Two executors. One waives fees, one takes fees.

• Waiving executor: $0
• Taking executor: Full $23,000 (for $1M estate)

Compensation vs. Reimbursement

Important distinction:

Executor Compensation

• Statutory fees for services
• Taxable income
• Requires court approval

Expense Reimbursement

• Repayment for money spent
• NOT taxable
• Routine reimbursements don't require court approval

Reimbursable expenses:

• Certified copies of death certificate
• Postage
• Filing fees
• Appraisal fees
• Mileage (at IRS rate)
• Office supplies
• Storage costs
• Property maintenance
• Insurance premiums

Keep detailed records and receipts.

Tax Implications of Executor Fees

Executor Fees Are Taxable Income

IRS and California Franchise Tax Board:

Executor compensation is ordinary income subject to:

• Federal income tax
• California state income tax
• Self-employment tax (if executor is self-employed)

Reported on: Form 1040, Line 8 (Other Income)

Estate issues: Form 1099-MISC if fees exceed $600

Tax Rates

Depends on executor's total income and tax bracket.

Federal rates: 10%-37% California rates: 1%-13.3% Combined: Up to 50.3% in highest brackets

Example: $23,000 executor fee, 35% combined tax rate = $8,050 in taxes.

Inheritances Are NOT Taxable

Key point: Money received as beneficiary is NOT taxable income.

This creates the tax incentive to waive fees when executor is also beneficiary.

Deduction by Estate

Estate can deduct executor fees on estate's income tax return (Form 1041).

But: This only matters if estate has taxable income during administration.

Most estates: No significant income, so deduction has little value.

Strategic Analysis: Should You Take Executor Fees?

Decision Matrix

TAKE FEES IF:

• You're not a beneficiary
• You performed extensive work
• You need current income
• Beneficiaries were difficult
• You incurred opportunity costs

WAIVE FEES IF:

• You're a major beneficiary
• You're in high tax bracket
• You want to maximize inheritance
• Estate administration was straightforward
• Family harmony matters

Calculation Example

Scenario:

• $1M estate, $23,000 executor fee
• Executor is 50% beneficiary
• Executor's tax rate: 35%

Option 1: Take fee

• Fee received: $23,000
• Taxes paid: $8,050 (35%)
• Net after tax: $14,950
• Inheritance: $488,500 (50% of $977K remaining)
• Total received: $503,450

Option 2: Waive fee

• Fee received: $0
• Taxes paid: $0
• Inheritance: $500,000 (50% of $1M)
• Total received: $500,000

Wait, taking fee was better?

Actually, no. This example ignores that executor already owned 50% of the fee:

Corrected Option 1:

• Net fee after tax: $14,950
• Cost to executor as beneficiary: $11,500 (50% of $23,000 lost from inheritance)
• Net benefit: $3,450

Corrected Option 2:

• Waive fee, inherit full share: $500,000
• No tax, no fee reduction
• Net benefit: $0 fee taken, but inherited $11,500 more

Complex math, but general rule: If you're a significant beneficiary in a high tax bracket, waiving usually makes sense.

Get Professional Advice

Consult CPA or tax attorney before deciding whether to take or waive fees.

Factors to analyze:

• Your tax bracket
• Your percentage inheritance
• Alternative minimum tax implications
• State tax implications
• Estate's tax situation

Special Situations

Professional Executors

Banks, trust companies, professional fiduciaries:

• Entitled to statutory fees
• Rarely waive fees (it's their business)
• May charge hourly rates if will permits
• Professional fees often higher than statutory

Attorney-Executors

If attorney serves as executor:

Cannot receive both:

• Statutory executor fees AND
• Attorney fees for same work

Must choose:

• Executor compensation for executor duties
• Attorney fees for legal work
• Combination (allocating appropriately)

California Rule of Professional Conduct 1.8.11 governs attorney conflicts.

Out-of-State Executors

Entitled to same statutory fees as in-state executors.

But:

• May have higher expenses (travel)
• May request extraordinary fees for travel time
• May need local attorney (additional cost to estate)

Successor Executors

If original executor:

• Resigns
• Dies
• Is removed

Successor executor:

• Entitled to statutory fees
• Fees calculated on full estate value
• Even though original executor did some work
• Court may prorate if both did substantial work

Frequently Asked Questions

Do executor fees come out of my inheritance?

Yes. Executor fees are paid from estate assets before distribution to beneficiaries, reducing what beneficiaries receive.

Can the will specify different executor compensation?

Yes. Wills can provide for higher or lower compensation. But if will provides less than statutory fees, executor can petition court for statutory amount.

What if beneficiaries think fees are too high?

Beneficiaries can object at court hearing. Court will review work performed and determine if fees are appropriate.

Are executor fees the same as attorney fees?

No. Executor fees compensate the executor. Attorney fees compensate the probate attorney. Both are based on same percentage schedule, but they're separate fees.

Can executor pay themselves without court approval?

No. All executor compensation requires court approval. Taking fees without approval can result in surcharge.

What if executor did a bad job?

Court can reduce or deny fees if executor breached fiduciary duties or failed to properly perform duties.

Can executor fees be negotiated?

Statutory fees cannot be negotiated—they're set by law. Extraordinary fees are subject to court determination of reasonableness.

What if estate can't afford executor fees?

If estate is insolvent, executor may not receive full fees. Creditor claims have priority over executor compensation.

Related Articles

Learn more about California executor compensation:

• California Executor Duties & Responsibilities - Complete checklist of executor duties and how much work is involved.

• How Much Does Probate Cost in California? - Executor fees plus attorney fees and total probate costs.

• How Long Does Probate Take in California? - Timeline for earning executor fees through completion.

• Letters Testamentary California - Authority required before executor can act or receive compensation.

• How to File Probate in Los Angeles County - Starting the probate process to become executor.

Get Help with Executor Compensation

Whether you're an executor trying to determine whether to take or waive fees, or a beneficiary concerned about excessive executor compensation, experienced legal and tax guidance is essential.

Call (818) 291-6217 to schedule a consultation at my Glendale office, or complete our probate questionnaire to discuss your situation.

As a California probate attorney serving Los Angeles County, I help executors understand their compensation rights, perform strategic tax analysis of taking vs. waiving fees, and assist beneficiaries in reviewing executor fee requests for appropriateness.

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About the Author

Rozsa Gyene (State Bar No. 208356) is a California estate planning and probate attorney serving Glendale, Burbank, Pasadena, and throughout Los Angeles County. With extensive experience advising executors on compensation strategy and defending executor fees against beneficiary challenges, Rozsa provides practical guidance on maximizing executor benefits while minimizing tax consequences.

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Disclaimer: This article provides general information about California executor fees and should not be construed as legal or tax advice. Every situation is unique. Consult with a qualified California probate attorney and tax professional about your specific circumstances. Tax rates and laws change regularly, and this article reflects information current as of January 2025.