What Should an Executor Be Paid in Texas?

Yes, executor fees are considered taxable income to the executor. The estate can deduct the payment as an administrative expense. Some family member executors choose to waive their fee to avoid the income tax, especially if they are also beneficiaries.

Yes, executors can waive compensation entirely or accept a reduced fee. This is common when the executor is a family member who is also a beneficiary. Waiving the fee increases the amount available for distribution to heirs.

An executor who is also a beneficiary is still entitled to executor compensation. However, they may choose to waive the fee since the fee is taxable income while inheritances generally are not. This decision depends on the individual's tax situation and preferences.

Executor fees are typically paid from estate assets after debts and expenses are settled but before final distribution to beneficiaries. Some courts allow interim fee payments during lengthy administrations. The executor must keep records of time spent and tasks performed.