416-369-7809. For the most part, however, a single hourly rate is usually determined that is thought to be commensurate with the value of the work that is done. Fee for the Executor of a Will in Illinois Learn More → If you are the heir or beneficiary to a decedent's estate, you have a right to a full accounting of the estate by the executor. 755 ILCS § 5/9-1. It will consider the hours involved, the size of the estate, and any unique circumstances. In addition to the income commission, the executor is entitled to a “corpus commission.” Corpus is a Latin word. Discuss the issue of executor fees with your family and your executor when making your estate plan. 1. answer. Typically, the probate court will find executor fees reasonable if it aligns with what people … Specific information about the attorneys in the Drendel & Jansons Law Group can be obtained on the  individual attorney pages. The Illinois Probate Act is very vague. Your executor must be: at least 18 years old; a U.S. resident, and; of sound mind -- that is, not judged incapacitated by a court. You may also claim a management fee. The other funds were transferable upon death. Creditors of the estate then have three months in which to file a claim against the estate. Thank you. Asked 3/19/10, 11:43 am in United States Illinois Probate, Trusts, Wills & Estates. Executor, must be served with process in the probate proceeding because they are the "distributees". EXECUTOR’S FEES – THE TAXMAN ALWAYS WINS. The executor is in charge of locating the assets that make up the estate, notifying beneficiaries that the deceased has died, paying off the deceased’s debts and transferring the assets that remain to the estate’s beneficiaries. The estate will be settled in chicago, Illinois. The executor is entitled to 6% of the $6,000 of income. In the absence of a statute, reasonableness is determined by the courts, which will take into account the specific circumstances of the trust at hand as well as compensation for similar services that has been deemed to be reasonable in the past. Id. Illinois law provides for "reasonable" compensation for the work your executor must perform in administering your estate. Theoretically, cleaning out a house involves a different kind of skill and expertise than negotiating the sale of property and overseeing the transaction. Executor’s or administrator’s fee: Pay yourself your executor’s fee, which must be reasonable. 1 Answer from Attorneys. Learn More → If you are the heir or beneficiary to a decedent's estate, you have a right to a full accounting of the estate by the executor. The Illinois statute states that the fees must be "reasonable" and that they must be approved by the probate court. (755 ILCS 5/6-3) (from Ch. 1. answer. 111 Flinn St. For some, it is a sliding scale, taking into account complexities and unique circumstances. Since the fees must be submitted to the probate court for approval, the beneficiaries have a right to object to those fees to the court. This is to avoid the appearance of a financial conflict of interest. Aurora, IL 60506 A management fee is not always appropriate or allowed. For example, a typical cost incurred in settling an estate is mileage and gas. Visit us at www.batavialaw.com to learn about the other things we do. Small estates can present very complex and unusual circumstances that require a great deal of effort and time. The executor is entitled to charge a fee that is a percentage of the estate. [Assets] go up in value. You must be able to show you actively managed estate assets. Ultimately, the reasonableness of the fee must be determined by the court. Illinois courts have indicated that fees should be determined based on a number of factors. Illinois law provides for "reasonable" compensation for the work your executor must perform in administering your estate. An executor fee is the portion of a deceased individual’s estate that is paid to the will’s executor. Of course, we also need to consider the hourly rate. From an Illinois Probate Court’s perspective, there is very little difference in serving as an Executor while living in the State of Illinois, or while residing out-of-state. If formal probate is not required, the legal fee can be under $1,000.00. Beyond compensation for services, Illinois law allows executors to receive reimbursement for legitimate out-of-pocket costs. The tariff sets claimable executor’s compensation at 2.5% of the value of each of the capital receipts, income receipts, capital disbursements and income disbursements, and also permits an overall care and management fee of 2/5 of 1% of average annual value of the assets. Since 2011, Thomas has also served as a contributing editor for the "Vermont Environmental Monitor. Here is one common scenario: An attorney is hired to represent the executor of an estate in probate court. Re: executor fees. For various legal resources, visit the Drendel & Jansons Resource Page. Fee for the Executor of a Will in Illinois Executor. But he doesn’t advise that. As with many things in the law, the answer to the question is not simple or straight forward. Illinois Executor Deed. We also discovered from the letter that my brother took an executor fee of $20,000. What Percentage Does the Executor Get in Illinois? Many states agree that the executor of a will is entitled to reasonable compensation for her services. Illinois laws establish the rights and duties of an executor of a will in the state. An executor has the right to request a fee of their choosing and must submit that amount to the probate court for approval. “The executor is entitled to be paid,” Wilson points out. Calculating estate administration tax on an estimated estate value. We use cookies to give you the best possible experience on our website. When people die leaving debts, other obligations and property and funds to be distributed to the rightful beneficiaries, the default mechanism for handling those things is called probate. These factors include the size of the estate, the skill with which the work was performed, and the time involved. On the upside, there is some assurance that the fees that are charged in probate estates are, at least, reasonable in light of the actual value of the work that is done. In these circumstances, you must: Show Less. Some wills name a trust company as executor. It will consider the hours involved, the size of the estate, and any unique circumstances. You establish your fee in one of two ways: The decedent’s will specifies the amount, or state statute fixes the amount based on a fee schedule. All rights reserved. My question is regarding the executor fee. The Illinois Probate Act is very vague. That company is paid, typically up to 5 percent of the value of the estate. Reasonableness is not defined in the law. The bottom line: If probate is required, the cost of probate in Illinois is typically $4,000.00 to $6,000.00 in a relatively simple estate with no disputes and a competent executor or administrator. Like many other states, Illinois also prohibits people who have felony convictions from serving as executor. Special Rules for Executors in Illinois. Answered in 9 minutes by: 7/26/2010. Contingency fees A contingency fee is a percentage of what a client "wins." This type of fee may be appropriate in the case of a contested will, where it is uncertain whether any money will be won. The Illinois Probate Act is very vague. The cost of probate is an expense of the estate, so it is usually paid out of estate assets. This would mean you managed an estate and did not distribute it immediately. The Supreme Court of Illinois does not recognize certifications of specialties in the practice of law and the certificate, award or recognition is not a requirement to practice law in Illinois. Discuss executor fees up front. More . The time by itself, absent any other considerations, cannot be considered alone. B. Illinois Case Law. A person may appoint the executor in their will and that person will be responsible for carrying out the wishes stated in the will. In Illinois, we don’t have the luxury of using a percentage as a guideline. 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