Since administrating an estate can be a laborious process, executors are permitted to receive compensation for their efforts. Sometimes a decedent has already worked out payment methods for an executor in a will, but if this is not the case, Ohio law will dictate how an executor is paid. However, state law also permits a court to revoke the pay of an executor in the event the executor mishandles the duties of the position.
According to state law, the fee an executor receives is calculated as a series of percentages of the assets of the estate as well as percentages derived from income generated by the estate. An executor can earn 4% on the first $100,000, 3% on the next $300,000, and 2% on amounts above $400,000. When it comes to real estate, executors can charge a fee that is 1% of the real estate value. In the event the real estate is sold, a fee derived from the gross proceeds will be taken from the aforementioned percentage scale.
Under certain conditions, an executor may lose out on compensation. In the event an executor fails to carry out duties owed to the beneficiaries of the estate, the executor could be taken to court. If a probate court determines that the executor failed to carry out some or any of the duties of the position, the court may reduce how much the executor receives or outright deny the executor any payment.
The fact that executors can be held accountable in court for their actions means it is important to make sure all aspects of the probate process are all carried out. Even honest mistakes and omissions in making final tax payments or selling property as required may cause beneficiaries to litigate an executor in court. Administrating an estate can involve different tasks depending on the estate, so only read this information for educational benefit and not as actionable legal advice.
