Executor’s commissions are exactly that – commissions paid to the executor of an estate for their services in completing their duties. In Bucks County, the fee is paid out of the estate and the amount can vary. There are several variables that determine the amount and whether or not the executor should take the commission.
Other states make this determination via statute, with set amounts delineated for each circumstance. However, Pennsylvania PEF 3537, Section 9.7 state, The Court shall allow such compensation the personal representative as shall in the circumstances be reasonable and just, and may calculate such compensation on a graduated basis.”
Executors’ commissions can be paid as a deduction taken on PA Inheritance Tax Return and the Federal Estate Tax Return. Some of the variables or factors in determining executors’ commissions concern taxation – this payment is considered ordinary income. As such, the amount received by the executor is added to employment income and taxed accordingly. When there is more than one executor, the commission should be allocated based upon the percentage of work that was performed by each individual.
Executors commissions in Bucks County can be challenging to approach and to calculate. With so many factors and variable guidelines, consulting an experienced Bucks County estate lawyer is the best way to find out how much an executor can receive in commissions. Call the Law Offices of Michael Kuldiner, P.C., at (215) 486-8171 today to schedule a consultation or complete an inquiry form and a member of our team will contact you shortly.