Executor fees in Massachusetts aren’t set by a fixed percentage or dollar formula. Under the state’s Uniform Probate Code, a personal representative is entitled to “reasonable compensation for services,” and the actual amount depends on the estate’s size, complexity, the hours involved, and the results the executor achieves. That word — reasonable — is where almost every question and dispute begins.
What the Statute Allows
Massachusetts General Laws Chapter 190B, Section 3-719 is the controlling statute, and it’s unusually short. It says a personal representative is entitled to reasonable compensation for services. No tiered percentages. No cap. No hourly rate.1General Court of Massachusetts. Massachusetts Code Chapter 190B Section 3-719 – Compensation of Personal Representative
The same statute lets an executor renounce compensation entirely, or renounce a fee that the will itself sets, by filing a written renunciation with the court. Family executors frequently waive their fee, often because they’re also beneficiaries and would rather receive the money as an inheritance than as taxable income. Filing the formal renunciation puts that choice on the record and prevents later questions about it.1General Court of Massachusetts. Massachusetts Code Chapter 190B Section 3-719 – Compensation of Personal Representative
How Courts Decide What’s Reasonable
Because the statute leaves “reasonable” undefined, Massachusetts courts have filled the gap through case law. The leading authority is McMahon v. Krapf, a 1948 Supreme Judicial Court decision that lists the factors judges still apply.2Justia. Francis M. McMahon, Executor, vs. George W. Krapf, Trustee
- The size of the estate.
- How marketable the assets are. Publicly traded stocks are far easier to administer than illiquid real estate, business interests, or collectibles.
- Legal and factual complexity, including contested claims, tax disputes, litigation, or assets held outside the country.
- The time reasonably required. Padded hours don’t survive scrutiny.
- The skill and ability the executor brings to the work.
- Amounts customarily paid for similar work in the community.
- The results accomplished, such as assets recovered, disputes resolved, or taxes minimized.
These factors work together rather than in isolation. An executor who spent 200 hours on a modest, straightforward estate will have trouble claiming the same fee as one who spent 200 hours untangling tax issues on a multimillion-dollar estate. Effort and results both count.
What Fees Actually Look Like in Practice
Without a statutory percentage, Massachusetts executor fees vary widely and are evaluated case by case. Some patterns show up in practice.
As a rough illustration, an estate worth around $700,000 that takes roughly 675 hours to administer might generate about $25,000 in executor fees. That works out to around $37 per hour, which is on the lower end for professional services but sits within what courts tend to approve for non-professional executors handling moderately complex estates.
Professional executors — banks, trust companies, and attorneys who serve in the role regularly — generally charge more than family members. Some bill hourly; others charge a percentage of the estate’s total value. Either structure still has to pass the Section 3-719 reasonableness test.
Family executors have more flexibility. Many take nothing, especially when they’re also inheriting. Others charge a modest hourly rate. Both approaches are legally fine, but the choice has tax consequences that are worth working through before deciding.
When the Will Sets the Fee
Some wills specify what the executor should receive — a flat amount, a percentage, or an hourly rate. When the will does that, the executor usually just takes what the decedent authorized, and beneficiaries can’t easily challenge the figure unless it’s so excessive it suggests fraud or undue influence in the drafting.
Executors aren’t locked in, though. Under Section 3-719, an executor who hasn’t signed a separate compensation contract with the decedent can renounce the will’s fee provision and claim reasonable compensation instead. That option matters when a will drafted years ago sets a fee that’s now well below market, or when the estate turns out to be far more complicated than the decedent expected.1General Court of Massachusetts. Massachusetts Code Chapter 190B Section 3-719 – Compensation of Personal Representative
Timing is the catch. The renunciation has to happen before the executor formally qualifies, meaning before the court issues letters of appointment. Once you’ve accepted the role under the will’s terms, that window closes.
How Executor Fees Are Taxed
Executor fees are taxable income. The IRS requires every personal representative to include fees received from an estate in gross income, whether they’re a professional fiduciary or a family member handling a single estate.3IRS. Are the Fees I Receive as an Executor or Administrator of an Estate Taxable
Self-employment tax depends on who you are. Professional executors — attorneys, accountants, trust companies serving regularly in that role — owe self-employment tax on their fees. Non-professional executors, meaning family or friends serving in an isolated instance, generally do not, unless the estate contains a business the executor actively helps run and the fees relate to operating it.
On the estate side, executor fees are deductible as administration expenses on the federal estate tax return, as long as the amount meets the usual standards for estates of similar size in the jurisdiction. A bequest left to an executor in lieu of compensation, however, is not deductible.4eCFR. 26 CFR 20.2053-3 – Deduction for Expenses of Administering Estate
That sets up a planning decision for anyone who is both executor and beneficiary. Taking a $25,000 fee means paying income tax on $25,000. Receiving $25,000 more as a beneficiary generally does not create taxable income for the recipient. On the other hand, if the estate is large enough to owe federal estate tax, paying the fee reduces the taxable estate, which can save money overall. The right answer depends on the specific numbers, and both scenarios are worth running before you commit.
Expenses Are Separate from Compensation
Fees and reimbursements are two different things. Compensation pays the executor for time and effort. Expenses cover out-of-pocket costs incurred while administering the estate: court filing fees, appraisals, postage, travel, storage, and professional services the executor hires.
An executor is entitled to reimbursement for reasonable expenses regardless of whether they take a fee for their time. Even executors who waive compensation should track and submit their out-of-pocket costs. Mixing the two categories, or failing to document them separately, creates confusion in the accounting and invites challenges from beneficiaries who can’t tell what they’re actually paying for.
When Beneficiaries Challenge the Fee
Fee disputes are among the more common flashpoints in Massachusetts estate administration, and they land in the Probate and Family Court. The typical complaint is that the executor is charging too much, or that specific tasks weren’t necessary.
When a beneficiary challenges a fee, the court weighs the request against the McMahon v. Krapf factors. The executor carries the practical burden of showing the fee is justified, which is where detailed records earn their keep. Executors who tracked their hours, noted what they did and why, and kept receipts for the professionals they hired have a far easier time defending a fee than those who submit a lump sum with little explanation.
Judges have broad discretion. They can approve the fee as requested, reduce it, or in rare cases deny compensation entirely if the executor breached fiduciary duties. Courts may also consider expert testimony about what executors typically charge for similar estates in the area, which brings the “amounts customarily paid” factor directly into play.
A lot of disputes never reach a full hearing. Open communication between executor and beneficiaries from the start, including a conversation about the expected fee before the work is done, heads off most conflicts. An executor who surprises beneficiaries with a large fee at the end of administration is almost asking for a fight.
Protecting Your Fee as the Executor
The single most important thing an executor can do to protect compensation is keep contemporaneous records. Log hours as the work happens, not from memory weeks later. Note what the task was, why it was necessary, and how long it took. Keep every receipt, every bill from an attorney or accountant, every appraisal.
A few other habits reduce friction:
- Tell beneficiaries early what you expect to charge and how you’ll calculate it. Transparency upfront prevents resentment later.
- Benchmark against similar estates. Courts look at community standards for comparable work, so your fee should too.
- If you’re also a beneficiary, run the numbers on taking a fee versus waiving it. The better answer isn’t always obvious.
- If you decide to waive the fee, file the formal written renunciation with the court. Don’t just skip billing.
- Hire professionals when the estate needs them. Paying an attorney or accountant from estate funds for complex legal or tax work is expected and reasonable; handling everything yourself to justify a bigger personal fee rarely holds up.
Executors who treat compensation with the same transparency and documentation they bring to the rest of estate administration rarely face serious challenges. The disputes that reach the Probate Court almost always involve an executor who either didn’t document the work or didn’t communicate with the beneficiaries, and often both.