When you are named as the Executor in another’s Will, there are many duties, obligations and rights associated with that designation. One of those rights is Executor remuneration.
Executor’s remuneration in BC is guided by s. 88 of Trustee Act. An executor can receive a maximum of 5% of the gross aggregate value of the estate for his or her care, pains, trouble and time spent in and about the executorship. The Executor can also receive a fee of .4% of the average market value of the assets on a yearly basis for the care and management of the assets by the Executor.
In addition to the principles found in s.88 the Will itself could designate the amount of remuneration for the Executor.
In either scenario, the amount of remuneration still must be fair and reasonable and bear some reasonable relationship to the work and responsibility of the Executor. If there is a dispute amongst the beneficiaries and Executor as to how much remuneration an Executor is entitled to, the court will have to intervene and determine the appropriate level of remuneration. The factors that a court will consider when determining Executor remuneration include:
- the magnitude of the estate;
- the care and responsibility involved;
- the time occupied;
- the skill and ability displayed; and
- the success achieved in the final results.
An Executor can also be reimbursed for expenses he or she may have incurred as a result of fulfilling his or her duties as Executor. For example, an Executor may have to seek the aid of lawyers or accountants when handling the estate. The fees that the Executor pays to these various professionals can be recovered as long as they related to the estate and for services that the Executor could not have performed themselves.