How can you ensure that an executor is fair in their oversight of an estate?
Full Question:
My brother is the executor of our father's estate. I want to make sure everything is fair. I heard there is an executor's fee. Is it a percentage? I've heard $10K.
11/16/2007 |
Category: Wills and Estates |
State: Texas |
#12407
Answer:
The following are Texas statutes:
§ 241 PROB. CODE. Compensation of Personal Representatives
(a) Executors, administrators, and temporary administrators shall be
entitled to receive a commission of five per cent (5%) on all sums they
may actually receive in cash, and the same per cent on all sums they may
actually pay out in cash, in the administration of the estate on a
finding by the court that the executor or administrator has taken care of
and managed the estate in compliance with the standards of this code;
provided, no commission shall be allowed for receiving funds belonging to
the testator or intestate which were on hand or were held for the
testator or intestate at the time of his death in a financial institution
or a brokerage firm, including cash or a cash equivalent held in a
checking account, savings account, certificate of deposit, or money
market account; nor for collecting the proceeds of any life insurance
policy; nor for paying out cash to the heirs or legatees as such;
provided, further, however, that in no event shall the executor or
administrator be entitled in the aggregate to more than five per cent
(5%) of the gross fair market value of the estate subject to
administration. If the executor or administrator manages a farm, ranch,
factory, or other business of the estate, or if the compensation as
calculated above is unreasonably low, the court may allow him reasonable
compensation for his services, including unusual effort to collect funds
or life insurance. For this purpose, the county court shall have
jurisdiction to receive, consider, and act on applications from
independent executors. The court may, on application of an interested
person or on its own motion, deny a commission allowed by this subsection
in whole or in part if:
(1) the court finds that the executor or administrator has not
taken care of and managed estate property prudently; or
(2) the executor or administrator has been removed under Section 149C
or 222 of this code.
(b) Definition. In this section, "financial institution" means an
organization authorized to do business under state or federal laws
relating to financial institutions, including banks and trust companies,
savings banks, building and loan associations, savings and loan companies
or associations, and credit unions.
§ 242 PROB. CODE. Expenses Allowed
Personal representatives of estates shall also be entitled to all
necessary and reasonable expenses incurred by them in the preservation,
safe-keeping, and management of the estate, and in collecting or
attempting to collect claims or debts, and in recovering or attempting to
recover property to which the estate has a title or claim, and all
reasonable attorney's fees, necessarily incurred in connection with the
proceedings and management of such estate, on satisfactory proof to the
court.
§ 243 PROB. CODE. Allowance for Defending Will
When any person designated as executor in a will or an alleged will, or
as administrator with the will or alleged will annexed, defends it or
prosecutes any proceeding in good faith, and with just cause, for the
purpose of having the will or alleged will admitted to probate, whether
successful or not, he shall be allowed out of the estate his necessary
expenses and disbursements, including reasonable attorney's fees, in such
proceedings. When any person designated as a devisee, legatee, or
beneficiary in a will or an alleged will, or as administrator with the
will or alleged will annexed, defends it or prosecutes any proceeding in
good faith, and with just cause, for the purpose of having the will or
alleged will admitted to probate, whether successful or not, he may be
allowed out of the estate his necessary expenses and disbursements,
including reasonable attorney's fees, in such proceedings.
§ 244 PROB. CODE. Expense Accounts
All expense charges shall be made in writing, showing specifically each
item of expense and the date thereof, and shall be verified by affidavit
of the representative, filed with the clerk and entered on the claim
docket, and shall be acted on by the court in like manner as other claims
against the estate.
§ 245 PROB. CODE. When Costs Are Adjudged Against Representative
When a personal representative neglects to perform a required duty or
if a personal representative is removed for cause, the personal
representative and the sureties on the personal representative's bond are
liable for:
(1) costs of removal and other additional costs incurred that are not
authorized expenditures, as defined by this code; and
(2) reasonable attorney's fees incurred in removing the personal
representative or in obtaining compliance regarding any statutory duty
the personal representative has neglected.
