People often ask; what are the Executor fees in New Jersey? Serving as Executor, Administrator, or Personal Representative requires a lot of work and is a big responsibility. Let’s take a look at the landscape of fees for serving in this important fiduciary role of a New Jersey estate.
Unlike neighboring Pennsylvania, the answer can be simple. The New Jersey legislature has enacted a series of statutes detailing an acceptable executor fee for an average estate when the testator has not specified otherwise. Keep in mind that, for drawn out, or complex estates, an executor may be entitled to greater compensation. As well, if an executor performs deficiently or if an estate is substantially easier than typical for its size, the court can reduce the claimed fee. With that in mind, let’s look at what the New Jersey legislature views as an acceptable fee for an estate of average difficulty.
Fair Executor Fees for an Average Estate in New Jersey
Corpus Commission
The total fee for an Executor in New Jersey is comprised of two sources: corpus commissions and income commissions. Corpus includes all the assets received by the executor upon the death of the decedent. The executor is entitled to charge a percentage-based fee scaled to the size of the estate. The commissions and percentages are as follows (N.J.S.A. 3B:18-14).
Minimum Marginal Value |
Maximum Marginal Value | % fee allowed | Total Per Row |
| $0.00 | $200,000 | 5% | $10,000 |
| $200,000 | $1,000,000 | 3.5% | $28,000 |
| $1,000,000 | up | 2% | Varies |
Hence, using this chart for an estate of average difficulty with a corpus of $1,000,000, the executor would be entitled to a $38,000 commission. ($38,000= (200,000x.05)+(800,000 * .035))
It follows that if you have an estate worth $4 million, an appropriate corpus commission would be $98,000. ($98,000= (200,000 * .05)+(800,000 * .035)+($3,000,000 * .02))
Income Commission
Income commission is earned on the income generated by the estate. An executor is entitled to receive 6% of all income received. (N.J.S.A. 3B:18-13) For example, if an estate receives $50,000 income from stocks and bonds held in a brokerage account. The executor would be entitled to $3,000.
So, in the $4 million estate example above, let’s assume that that $3 million is held in a brokerage account, receiving an annual return of 7%. In that case the executor’s compensation would be $98,000 + $12,600 = $110,600! ($12,600 = (3,000,000 * .07) *.06))
Additionally, for estates that last longer than one year, an executor may charge at the bare minimum 1/5th of 1% of the trust corpus each year as corpus commission.Remember that these guidelines are for regular estates, administered correctly. If an estate is difficult and time-consuming, an executor may be entitled to greater compensation. Or, if there is mismanagement of an estate, the court has authority to surcharge the executor for an excessive fee.
As you can see, various factors come into play when determining an appropriate commission. We will update our blog with examples of cases where Executor of Estate fees in New Jersey have been challenged and upheld, or reduced as we find them.
If you have questions about executor fees in New Jersey or any other estate planning concerns contact our office for a free consultation.
New Jersey Estate Administration Fees
- Overview
- NJ Probate Attorney Fees
- NJ Executor Fees
- NJ Trustee Fees
- NJ Agent & Power of Attorney Fees
- NJ Guardianship Fees
Peter Klenk is the founding member of Klenk Law, a seven attorney boutique estate planning law firm. We serve clients in Pennsylvania, New Jersey, New York, Minnesota and Florida. Peter Klenk received his Masters in Taxation LL.M. from NYU Law School and his J.D. from the University of Minnesota Law School. He served his country in the Navy JAGC during Desert Storm. Easy to talk to, feel free to call Peter for an appointment. We will make the process as easy as possible!
Free Consultation
Client Review
"I worked for Peter Klenk for 4 wonderful years. I can’t speak highly enough of everyone at the firm. Everyone truly cares about their clients and has a strong sense of responsibility to get things done right. I would highly recommend Klenk Law!"
Flora Novick
What Our clients are saying
Susan W.
Tremendous firm with bright, kind and tenacious people. Great representation for our family.
Sharon A.
We recently used Peter's firm to update our wills and trusts. We found he and his staff to be well-informed, professional and highly efficient. And equally valuable, Peter explains the law in terms that a layperson can readily understand.
Darryl J.
Answered my question quickly and referred me to a colleague that could handle my problem
Kevin K.
I was referred to Peter after my divorce to put documents together to protect my assets. He suggested a number of documents that would help protect my children and their future. Also, he put together wills, power of attorney and living wills. I initially spoke with him on the phone, he took 30-40 minutes to understand my situation and explain the benefits of having such documents. After a week or two, I met with him in his office and signed the documents. Everything else was remote phone calls and emails. He re-explained these documents and what whom to share. I am in good hands.
Brian M.
Peter explained a complex subject very clearly, helped us to decide the best approach to managing our estate and then made it very easy for us to execute the required documents. He will be a valuable resource for years to come and clearly has a great understanding of estate law that will lead to innovative solutions for us. I would unhesitatingly recommend him for estate planning.
Let us put our expertise to work for you.
Free consultation within 24 hours.
