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Eldercare
Reply to "inheritance question and again, family..."
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[quote=Anonymous]The will may stipulate compensation, but even if it didn't, the executor is entitled to reimbursement for their time. That amount can be agreed upon by the beneficiaries or established by the probate court. Some states have established guidelines for what is a reasonable amount of compensation for an executor/trustee. For example, Maryland says that compensation should not exceed 9% of the first $20,000 of the estate and $1,800 plus 3.6% of the excess over $20,000. So if an estate is worth $100k, reasonable compensation in Maryland would be up to $6,480; for an estate of $1M, reasonable compensation would be up to about $39k. NY has different guidelines but the results are similar--by my math, $5k for an estate worth $100k and $34k for an estate worth $1M. So I would look at what your cousin has retained and see if it would meet the definition of "reasonable" in the applicable state (or other states if the applicable state has no set guidelines). If it's reasonable, no court is going to deny it. If it's not reasonable, you'll have to get the court involved. So charging for her time is completely ethical. But it needs to be "reasonable," and she should have declared in writing her intention to claim compensation and the amount. Just doing it on the sly is not acceptable.[/quote]
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