What is an "executor’s commission"?

An executor's commission refers to the compensation paid to an executor for the services they provide in administering a deceased person's estate. This commission is intended to recognize the time, effort, and expertise required to properly execute the duties of an executor, which can include managing estate assets, settling debts, and distributing property to beneficiaries. The commission may be set by state law or specified in the will itself.

This payment is important because it ensures that individuals who take on the responsible role of executing a will are compensated for their work, as serving as an executor can involve significant responsibility and a considerable investment of time. Understanding the concept of an executor's commission is essential for those involved in estate planning and administration, as it underscores the financial aspects of managing a deceased person's estate.