Can an executor be paid? Yes. In Maryland, Washington, D.C., and Texas, the person who settles an estate is generally entitled to compensation for their work, and to be reimbursed for reasonable out-of-pocket expenses. How much, and who approves it, depends on the will and on the state where the estate is handled.

Can an executor be paid for settling an estate?

Yes. In most cases an executor (called a “personal representative” in Maryland and D.C.) is entitled to reasonable compensation for their time and effort, paid from the estate before the remaining assets go to beneficiaries. Each jurisdiction sets its own rules for how that pay is calculated and reviewed.

Being an executor is real work: gathering assets, paying bills, filing inventories and accounts, and keeping beneficiaries informed. The law recognizes that. Many people who serve, especially family members, choose not to take a fee, but that is a choice, not a requirement.

For more, see: What Does an Executor Actually Do? Duties, Deadlines, and Personal Liability

Does the will decide how much the executor gets paid?

The will is the starting point. It may set a specific fee, ask the executor to serve without pay, or say nothing. When it says nothing, state law fills the gap. A will’s fee provision is not always the final word, though: Maryland and D.C. both allow the personal representative to seek more than the will provides in some circumstances.

If you are writing your own will, it can be worth deciding this upfront. A clear compensation clause can reduce questions later among family members.

How much is an executor paid in Maryland, D.C., and Texas?

The short answer: Maryland uses a capped percentage schedule, D.C. uses a “reasonable compensation” standard, and Texas uses a 5% commission on certain cash received and paid out. The details matter, so here is each one.

Maryland

Maryland law caps personal representative commissions at 9% of the first $20,000 of property subject to administration, plus 3.6% of anything above $20,000, unless the will provides a larger amount (Md. Code, Est. & Trusts § 7-601). The orphans’ court may allow commissions up to that cap on a detailed petition; it is a ceiling, not an automatic amount.

For example, on an estate with $200,000 of probate property, the maximum commission under the table would be $1,800 plus $6,480, or $8,280. The actual amount allowed may be lower.

Attorney fees are handled separately under § 7-602, but the court looks at them together with commissions. When it allows a legal fee, the court considers what a fair and reasonable total cost of administering the estate would be. Maryland law also allows commissions and attorney fees to be paid without a court petition when all interested persons and any creditors with open claims consent in writing, within the statutory limits (§ 7-604).

A practical point: the percentages apply to property that goes through probate. Assets that pass outside probate, such as jointly owned accounts or accounts with named beneficiaries, generally are not part of the calculation.

For more, see: Assets That Skip Probate: Joint Accounts, Beneficiary Designations, and Trusts

Washington, D.C.

D.C. law entitles a personal representative to “reasonable compensation for services” (D.C. Code § 20-751). There is no fixed percentage. The personal representative may decline a fee set in the will and claim reasonable compensation instead, or waive compensation entirely.

In a typical (unsupervised) D.C. estate, reasonable compensation can generally be paid without advance court approval. Any interested person can ask the court to review whether the fee is reasonable, and the court may order a refund of any excess (§ 20-753). The court weighs factors such as the work performed, time spent, complexity, results, and whether deadlines were met, so a detailed time record is valuable.

Texas

Under the Texas Estates Code, an executor or administrator who manages the estate properly is entitled to a 5% commission on amounts actually received or paid out in cash during administration (Tex. Est. Code § 352.002). The total may not exceed 5% of the estate’s gross fair market value.

Several things are excluded: cash the decedent already had on hand or in bank or brokerage accounts at death, life insurance proceeds collected, and cash paid out to heirs or beneficiaries. In practice, commissions often come from things like selling property or paying the estate’s debts. A court may allow reasonable compensation instead when the executor runs a farm, ranch, or business of the estate, or when the 5% figure would be unreasonably low (§ 352.003). It may also deny a commission if the estate was mismanaged (§ 352.004).

Many Texas estates are handled through “independent administration,” which means the executor acts with far less court supervision. Wills commonly address executor compensation, and independent executors can apply to the court for alternate compensation when appropriate.

Comparison at a glance

Can an executor decline the fee?

Yes. Maryland, D.C., and Texas all allow an executor to serve without taking compensation, and Maryland and D.C. law expressly allow the personal representative to renounce all or part of the fee. Many family members do this, especially when they are also a main beneficiary.

The reason is often practical. If you are inheriting from the estate anyway, taking a fee may simply shift money from one pocket to another and add income tax (see below). If other beneficiaries are involved, or the work is heavy, taking a reasonable fee can be entirely fair. It helps to decide early and communicate the decision openly.

Are executor fees taxable?

Generally, yes. The IRS says personal representatives must include fees paid to them from an estate in their gross income. An inheritance, by contrast, is generally not taxable income to the person who receives it under federal law.

That difference is why some family executors who are also beneficiaries waive the fee. Estate or inheritance taxes, and the estate’s own income tax return, are separate issues. A tax professional can help you weigh the effect in your situation.

Can an executor be reimbursed for expenses?

Yes. Reasonable, necessary expenses of administering the estate are generally reimbursed from the estate, separately from any fee. Common examples include:

• Court filing fees and costs of publishing required notices

• Appraisals of real estate, vehicles, or valuables

• Premiums for a probate bond, if one is required

• Reasonable travel to manage property or attend hearings

• Professional fees, such as an attorney, accountant, or appraiser

• Costs of securing, insuring, or maintaining estate property

Texas law, for example, allows necessary and reasonable expenses for preserving and managing the estate plus reasonable attorney fees, and requires expense charges to be itemized and verified when they are submitted to the court (Tex. Est. Code §§ 352.051, 352.053).

What records should an executor keep?

Keep every receipt, and write down the date, amount, and purpose of each expense. If you plan to take a fee, keep a simple log of the time you spend and what you did.

Good records protect everyone. They make court accountings smoother, answer beneficiary questions before they become disputes, and support your fee if anyone asks the court to review it. Paying expenses from a dedicated estate bank account, rather than personal funds, also makes the trail much clearer.

For more, see: When Family Members Disagree About an Estate

Frequently asked questions

Can an executor pay themselves before the estate is settled?

It depends on the jurisdiction and the circumstances. In Maryland, commissions generally require a court petition or the written consent of interested persons and open-claim creditors. In D.C. and in Texas independent administrations there is typically less upfront oversight, but the fee can still be reviewed later, so it is wise to be cautious and document everything.

Is the executor fee the same as the lawyer’s fee?

No. The executor’s compensation is pay for serving in that role. Attorney fees are a separate administration expense for legal services to the estate. In Maryland, the court considers both together when judging the total cost of administration.

Can a beneficiary challenge the executor’s fee?

Generally, yes. Interested persons can object to commissions in Maryland, petition for review of reasonableness in D.C., and ask a Texas court to deny or reduce a commission in certain situations, such as mismanagement.

Does a co-executor get a separate fee?

Not necessarily. How compensation is shared among co-executors depends on the will and state law, and courts often look at the total reasonable amount rather than doubling it. This is worth confirming early if two or more people will serve.

Talk it through with us

Whether you are serving as an executor for the first time or trying to understand how an estate is being handled, clear answers make the process easier. We help families in Maryland, D.C., and Texas settle estates with flat-fee pricing where possible, and simple probate with a will starts from $3,000.

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This article is general information, not legal advice. Reading it does not create an attorney-client relationship.