What is the Average Fee for an Executor of an Estate in Maryland?
When a loved one passes away, managing their estate becomes a significant responsibility, often assigned to an executor. If you are tasked with this role in Maryland, understanding the potential compensation for your duties is crucial. The Law Offices of Terri D. Mason, P.C. can guide you through the legal aspects of this responsibility.
Understanding Executor Compensation
In Maryland, the compensation for an executor, also known as a personal representative, is a matter taken with considerable flexibility. This role involves managing the deceased’s final affairs, a responsibility that can vary greatly in complexity. The compensation, therefore, is not fixed but varies with the estate’s size and the complexity of tasks involved.
Maryland law provides a framework to help determine a reasonable fee for an executor, as detailed in the Maryland Estates and Trusts Code. Specifically, compensation for executors is generally calculated as a percentage of the estate’s gross value. According to § 7-601 of the Estates and Trusts Article, the standard compensation scheme is as follows:
- 9% on the first $20,000 of the gross estate.
- 3.6% on the balance of the estate over $20,000.
These percentages serve as a guideline; however, the actual fee can be adjusted based on various factors, including the complexity of the estate, the time spent managing the estate, and any special skills or efforts required by the executor.
The specific details of the estate can necessitate deviations from the standard percentages. For instance, if the estate includes a business that needs managing or complex securities that require special handling, the court or the agreement with the beneficiaries may justify a higher fee. Conversely, if the estate is primarily composed of easily liquidated assets, the compensation might be lower.
Court Approval and Beneficiary Agreements
It’s important to note that while these percentages are guidelines, executor compensation in Maryland often requires approval by the Orphans’ Court overseeing the estate proceedings. Executors must file an accounting that includes the proposed fee, and beneficiaries have the right to object to this fee if they deem it unreasonable. The court then makes a determination based on the fairness and reasonableness of the compensation in relation to the work performed.
The compensation agreement may also be set forth directly in the will. If the decedent specified a particular amount or formula for calculating the executor’s fee in their will, that provision takes precedence, provided it is not contested by the beneficiaries or deemed unreasonably low or high by the court.
The role of an executor involves various responsibilities, from paying off debts and taxes to distributing assets according to the deceased’s wishes. Given the significant legal and financial implications, having a skilled estate planning attorney to guide you is invaluable.
Seeking Guidance from an Estate Planning Attorney in MD
Understanding your entitlement as an executor and ensuring the estate is managed correctly can be daunting without proper legal backing. The Law Offices of Terri D. Mason is here to support you with experienced legal counseling tailored to your unique needs in estate and trust management. For more information or to schedule a consultation, visit our contact page today. Let us help you honor your loved one’s legacy with confidence and legal precision.