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Questions and Answers about Executor and Trustee Fees in California
- What is the probate process in California?
The probate process is a court-supervised procedure that occurs whether someone dies with a will (testate) or without a will (intestate). It typically takes 12-16 months.
- What compensation is an executor entitled to during the probate process in California?
The executor (personal representative) is entitled to compensation based on California Probate Code § 10800, calculated as:
4% of the first $100,000
3% of the second $100,000
2% of the next $800,000
1% of the next $9,000,000
0.5% of the next $15,000,000
A reasonable amount for estates over $25,000,000.
- How are executor fees calculated?
Using a $500,000 estate example, the executor’s compensation would be $13,000, calculated based on the statutory percentages applied to the estate’s gross value.
- What happens if the deceased created a trust instead of going through probate?
If a trust is created, the estate bypasses probate, saving time and avoiding the statutory executor fees.
- What fees are a successor trustee entitled to when administering a trust?
Successor trustees are not entitled to the same statutory fees as executors. Instead, they are compensated based on the trust document or a reasonable fee according to California Probate Code § 15680.
- How is a “reasonable” fee for a trustee determined?
A reasonable trustee fee is determined by factors like the estate’s value, the responsibilities assumed by the trustee, time spent, and whether the work was ordinary or extraordinary (California Rules of Court 7.776).
- How much can a successor trustee expect to be compensated?
For a $500,000 estate, a trustee can expect compensation of 1-2% of the gross value, which equals $5,000 to $10,000.
- How can creating a trust save on administrative costs and time?
Creating and funding a trust avoids the probate process, saving beneficiaries potentially thousands of dollars and reducing the time spent in court by months.
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