Read the will and appointment papers first
The will may address compensation, and the Probate Division’s orders and current law govern the fiduciary’s authority. A nominated executor should not assume that work performed before appointment, family agreement, or access to estate funds authorizes payment.
Build a contemporaneous work record
Keep dates, tasks, time, complexity, travel, property work, communications, and results in an orderly log. Separate executor work from services performed as a beneficiary, family member, property occupant, contractor, accountant, or lawyer. Avoid duplicate compensation and undisclosed conflicts.
Compensation and reimbursement: what to confirm before paying an executor
| Item | What to confirm |
|---|---|
| The will | Whether it addresses compensation |
| Appointment papers and court orders | The fiduciary's authority |
| Work before appointment | It does not by itself authorize payment |
| Work log | Dates, tasks, time, travel and results |
| Roles | Executor work versus work done as beneficiary, contractor or professional |
| Reimbursement | Supported estate expenses are different from compensation |
| Tax and approval | How the accounting or court process treats it |
Address tax and beneficiary communication
Executor compensation may be treated differently from an inheritance for income-tax purposes. Explain proposed compensation through the appropriate accounting or approval process, preserve supporting records, and obtain advice when the amount, role, will language, family relationships, or professional services create uncertainty.
Does an executor get paid in Vermont?
Yes. The statute allows an executor necessary expenses in the care, management, and settlement of the estate, and reasonable fees for services; the will may set a different amount, and many family executors take no fee.
What if the will sets the executor's pay?
That is treated as full satisfaction for the executor's services, unless the executor files a written renunciation of the will's compensation or the court orders otherwise. The executor cannot add a second fee on top.
Do I need the court's approval to pay myself?
Fees appear in the accounting, and the court can review them. Sharing your plan with the beneficiaries first, and getting their consent in writing, prevents objections; do not pay yourself before you have authority.
Is an executor's fee taxable?
Generally yes, as ordinary income to the executor. An inheritance is treated differently. Talk to a tax adviser about whether a family executor is better off taking a fee or not.
Can an executor who is also a beneficiary waive the fee?
Yes. Some prefer to, because an inheritance is not taxed as income and a fee is; the choice can be made in writing. It should be an informed choice.
Can the executor also charge for legal work?
Only if the executor is a lawyer and the work is legal work, and it must be reasonable and separated from executor duties. Avoid double billing. The court may examine it.
What if beneficiaries object to my fee?
Explain the basis with your log, offer to discuss it, and if needed let the court decide. The fee is part of the account, and an unresolved objection can slow closing.
Can co-executors each be paid?
Each may be entitled to reasonable fees for their own work, but the total should not be unreasonable. Coordinate roles. Beneficiaries look closely at duplicate pay.
What expenses can the executor be repaid?
Necessary ones, such as filing fees, insurance, repairs, publication costs, travel, and postage, supported by receipts. Keep them separate from fees. Do not pay estate bills from your own account without keeping records.
What if I did work as a contractor for the estate?
Disclose the separate contractor role and proposed charge. Paying yourself for extra services is a conflict of interest. Get the beneficiaries' written consent or the court's approval first.
Should I ask a lawyer about my compensation?
If the amount is significant or a beneficiary is upset, yes; a short consultation about fees and tax can prevent a dispute. Present the fee with supporting records.
Sources and further reading