Executor Appointment

• When a will designates an executor, the court will normally follow the decedent's wishes and confirm the executor. However, if there is no executor designated or if an estate is particularly large and complex, the court will appoint an executor to handle the transfer and protection of assets. Although the court can appoint a family member, the court can also appoint a financial institution, such as a bank or a law firm. The executor is responsible for the identification and distribution of the assets of the estate.
  
  

Estate

• The estate refers to all the items the decedent left. An estate consists of both debt and assets. Before the transfer of asset items, creditors must be notified of the death of the decedent and given time to submit their claims for payment from the estate. As there may not be sufficient cash assets for payment of claims, the value of assets must be predetermined before selling the assets for income to pay off creditor's claims.
  
  

Executor Compensation

• Financial compensation for executors varies from state to state. Compensation normally set by a state's probate code. Some states, such as Virginia or California, regulate the executor fees as a set percentage of an estate, which can lower as the estate value rises. Other states, such as Florida, designate a specific monetary amount of compensation based on the value of the estate. Most states allow an increase or decrease in fees based on a motion or objection to the fees. Expenses are normally payable in addition to the compensation.
  
  

Monthly Fee

• Most executor compensation is due at the conclusion of the probate. The executor and attorney present bills to the court detailing the services provided and expenses paid during probate. The court then issues an order for payment, providing no objection is received. However, some courts, such as Virginia, allow an advance on executor compensation, annual payment of executor fees or a monthly payment of compensation if the executor account is set up with monthly valuations of assets and monthly calculation of fees. These special services require a court order. For information specific to your state, consult with a local attorney.