Skip to Content

We are a Veteran Owned Business, providing 20% discounts for Veterans, First Responders, Elementary and High School teachers. Please contact us to set up a phone or Zoom meeting. Taking care of you and your family, It's What We Do!

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 allowedTotal Per Row
$0.00$200,0005%$10,000
$200,000$1,000,0003.5%$28,000
$1,000,000up2%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.

What Our clients are saying

Klenk Law Logo
Stars

Gwen Hinrichs

I can't tell you how satisfied I am with this law firm. They were competent and helped me with a very difficult situation. They got the job done in a timely fashion and I am so happy I found them. If you find yourself in a difficult and contentious probate situation I highly recommend this firm. There is just no way I could have had this positive outcome without them. I worked with 2 different lawyers prior to hiring them and neither of them could get the job done like Klenk. Daniella Horn was a pleasure to work with and highly competent.

Klenk Law Logo
Stars

Joseph Atencio

I've been through the process of creating and revising estate documents several times over the years and it's never been easier than it was with Peter Klenk. Always available and a master at explain arcane tax and legal issues in plain English for "dummies". I recommend the firm without reservation.

Klenk Law Logo
Stars

Denise Lowmaster

Our experience with Klenk Law has been exceptional. We’ve had help with estate planning and pre-nuptial agreements. They really take the time to explain everything and let us know our options. All of the staff are very professional, courteous and knowledgeable. They are very prompt with responding to calls and messages. We will continue to use them and recommend to friends and family.

Klenk Law Logo
Stars

Jim Yannessa

A very friendly knowledgeable experience. I would recommend and use them again.

Klenk Law Logo
Stars

Chris Kurdelski

Transparent approach and pricing, with prompt and professional response. They understand the various sensitivities of estate planning. Cannot recommend the firm more highly., go with Klenk

Let us put our expertise to work for you.

Free consultation within 24 hours.