Your executor will perform crucial duties. From managing your estate to keeping beneficiaries and interested parties reasonably informed. Thus, it’s crucial to reimburse them for their services. This can be a no-brainer if you hire a professional executor. But you can also pay a loved one who accepts the role.
Here is how you can do this:
Consider factors related to your estate
Your executor deserves reasonable compensation, which will depend on the circumstances related to your estate. Some of the factors to consider include how much time they will spend executing your estate, the complexity of the estate and the estate’s uniqueness.
For example, if you have unique assets like digital ones, your executor will have to find experts to determine their values and learn how to manage them, which can take time. Thus, you need to compensate them accordingly.
Consider the estate’s expenses
Your executor will handle some expenses before the probate process is complete. These include funeral expenses, debts, bills, taxes, closing costs of property sales, attorney fees, court fees and so on.
Consider leaving enough cash for them to cover these expenses. If you choose not to do so, your executor will pay these costs out-of-pocket. Therefore, you need to reimburse them.
Further, you can help your executor avoid certain expenses. For example, your will can waive the surety bond requirement. Working closely with your executor to help them understand your estate in-depth and connecting them with professionals on your team can also be beneficial, as it may reduce the time they spend executing the estate.
The amount you reimburse your executor will depend on your estate and the state laws. Learn more about the circumstances surrounding your estate to compensate your executor reasonably.