Comments on: The Benefits of a Professional Executor

By: Preet

Preet — Fri, 22 Aug 2008 01:56:57 +0000

@John – thanks for your contribution. Certainly part of the process of choosing an executor would require careful consideration, not only as to whether one will choose someone they know versus a trust company, but also the capabilities of each. Curious as to who the “client” is you are referring to (not the actual identity): do you mean the beneficiaries? or the deceased? If a trust company’s job is to carry out the wishes of the deceased in a timely manner then they will have fulfilled their role I would think.

By: john

john — Thu, 21 Aug 2008 23:44:18 +0000

I am in my 70’s, an engineer by education but have acted as executor for several relatives. I found it to be an easy straight forward task requiring no special expertise but these were not complicated estates. In a few cases a trust company was involved but there primary interest was to wind up the estate as quickly as possible and collect their fee even though it was not in the best interest of the clients in my opinion.

By: Thursday Linkstuff and Rob Carrick is God

Thursday Linkstuff and Rob Carrick is God — Thu, 21 Aug 2008 09:02:07 +0000

[...] Does All My Money Go let us know about the benefits of a professional executor. This sounds like a pretty good service, especially if you don’t have anyone in mind to look [...]

By: Preet

Preet — Thu, 14 Aug 2008 03:08:44 +0000

@ FP - I believe the maximum fee an executor can take is 5% (unless specific provisions are made in the will). Also see this post for why you might not want to take an executor's fee. As for the minimum estate sizes: yes, the younger you are the larger they would like to see the estate to be in general. I have been told by some people that the reason for this is that you can change who your executor is down the road after they have done much of the planning work for you, thereby getting cut out of their fee they were expecting down the road. A larger estate is less likely to change the arrangement (as the estate can be more complex and you may feel that a professional is the only way to go). Conversely, if you are very old or very sick, the minimums DROP. While the fee may be ultimately lower, the chance of them getting it is higher.

By: Four Pillars

Four Pillars — Thu, 14 Aug 2008 02:43:20 +0000

That’s pretty reasonable. I think most people give their executor 5-10% of their estate. We indicated 5% for ours.

Preet – are there minimum estate sizes for this type of service?

By: Preet

Preet — Wed, 13 Aug 2008 19:48:43 +0000

@ CC – No – that would be a one time fee based on the probatable assets in the estate taken when the estate is settled.

If there are any trusts that require trust management going forward there may be an annual fee (negotiated in advance) and generally it would be 0.7% to 1.5% per annum based on the assets in the trust. But this is separate from the executor’s fees.

By: Canadian Capitalist

Canadian Capitalist — Wed, 13 Aug 2008 19:28:18 +0000

2.25% to 4.5% would be an annual fee, right?

By: Preet

Preet — Wed, 13 Aug 2008 17:51:27 +0000

I surveyed some people in the know and they suggest 2.25 – 4.5% (fee starts at the high end and tiers down based on larger estates). The fee is also dictated by the size, complexity and expertise of the executor. The good news is that the trust company will generally sit down and give you a quote and walk you though the process first. There actually are guidelines and the courts can request that the executor provide reason for the fees charged. This can be avoided if the testator makes a specific provision to the executor in the will.

By: MillionDollarJourney

MillionDollarJourney — Wed, 13 Aug 2008 11:41:42 +0000

Question Preet, how much does a professional executor cost on average?

By: My Last Will And Testament…

My Last Will And Testament… — Wed, 13 Aug 2008 10:59:22 +0000

[...] Does All My Money Go provides some “Benefits of a professional executor“. Similar Posts:Smart Couples Finish Rich – Ch. 1 [...]