In California, an executor is paid on a statutory sliding scale set by Probate Code Section 10800, starting at 4% of the first $100,000 of the estate and dropping as the estate grows. So how much does an executor get paid in California on a typical estate? A $500,000 estate pays the executor $13,000; a $1 million estate pays $23,000; a $2 million estate pays $33,000. The percentages are automatic once the court approves the final accounting, and the estate’s attorney is paid the same amount on the same schedule.
The Statutory Fee Schedule
Probate Code Section 10800 sets executor compensation at these tiers:1California Legislative Information. California Probate Code 10800
- 4% on the first $100,000
- 3% on the next $100,000
- 2% on the next $800,000
- 1% on the next $9,000,000
- 0.5% on the next $15,000,000
- A reasonable amount set by the court on anything above $25,000,000
These percentages are a matter of right. You don’t have to justify your hours or prove how hard you worked on ordinary tasks like inventorying assets, paying creditors, or filing the final tax returns. If the estate closes properly, the fee follows.
How the Estate Value Is Calculated
The number plugged into the formula is not the net estate after debts. It’s the total appraised value of the inventory, plus gains on asset sales and income received during administration, minus losses on sales. The statute specifies this is calculated “without reference to encumbrances or other obligations on estate property.”1California Legislative Information. California Probate Code 10800
That rule catches many families off guard. If the decedent owned a home appraised at $900,000 with a $700,000 mortgage still on it, the full $900,000 counts toward the fee calculation. The mortgage is ignored. Car loans, business debts, and other liens are ignored the same way. An asset-rich, equity-poor estate can generate executor and attorney fees that look large compared to what beneficiaries actually receive.
Sample Calculations at Common Estate Sizes
For a $500,000 estate, the fee is $13,000: $4,000 on the first $100,000, $3,000 on the second $100,000, and $6,000 (2%) on the remaining $300,000.1California Legislative Information. California Probate Code 10800
For a $1,000,000 estate, the fee is $23,000: $4,000 plus $3,000 plus $16,000 (2% on the full $800,000 third tier). For a $2,000,000 estate, the executor earns $33,000. Work through each bracket in order and the math falls out quickly; a probate attorney or the court clerk can confirm the figure if you want a second look.
When the Will Sets a Different Amount
If the will specifies the executor’s compensation, that provision controls instead of the statutory schedule. Some wills name a flat dollar amount, a different percentage, or no compensation at all. Under Probate Code Section 10802, whatever the will says is treated as “the full and only compensation” for the executor’s services.2California Legislative Information. California Probate Code 10802
You aren’t completely stuck with an unfavorable provision. Section 10802 lets the executor petition the court for relief from the will’s compensation terms. The court holds a hearing after notice to beneficiaries and heirs whose interests would be affected, and if the judge grants relief, the executor can claim statutory fees instead. This matters most for older wills with fixed-dollar fees that no longer match the estate’s size, such as a 2005 will offering $5,000 to administer what grew into a $2 million estate.
Extra Pay for Extraordinary Services
When administration goes beyond routine work, the executor can petition for additional compensation under Probate Code Section 10801. The court has discretion to award whatever amount it considers “just and reasonable.”3California Legislative Information. California Probate Code 10801
Work that typically qualifies includes selling real property, handling IRS tax audits, operating a business owned by the decedent, and litigating claims against people who owe the estate money. None of this falls within the “ordinary services” the statutory percentage covers. Unlike the fixed schedule, extraordinary compensation is never guaranteed. You have to file a separate petition and show the work was necessary. California Rule of Court 7.703 directs judges to weigh the statutory compensation already awarded, the time and complexity of the extra work, and the results achieved for the beneficiaries.4Judicial Branch of California. Rule 7.703 – Extraordinary Compensation
Splitting the Fee Among Co-Executors
Two or more co-executors split a single statutory fee. The estate does not pay double or triple because multiple people were appointed. Probate Code Section 10805 directs the court to divide the compensation “according to the services actually rendered by each personal representative,” or according to whatever the co-executors agree among themselves.5California Legislative Information. California Probate Code 10805
If the co-executors agree on a split, the court will usually accept it. If they can’t agree, the judge divides the fee based on who actually did the work. A co-executor who handled the paperwork, court filings, and creditor negotiations rarely wants a 50/50 split with someone who barely participated, so keeping records of each person’s work from day one prevents disputes at the end.
The Attorney Is Paid on the Same Schedule
Probate Code Section 10810 gives the attorney for the personal representative compensation on the identical sliding scale. On a $500,000 estate, the executor earns $13,000 and the attorney earns another $13,000, for $26,000 in combined statutory fees. Both sides can also request extraordinary compensation.6California Legislative Information. California Probate Code 10810
When and How the Executor Actually Gets Paid
You can’t simply write yourself a check from the estate account. Compensation requires court authorization. The standard process: file a petition that includes a full accounting of every financial transaction during administration along with the requested fee amount, serve notice on the beneficiaries, and wait for the hearing. If the judge signs the order, you can then withdraw the fee from the estate account. Taking money without court approval can lead to personal liability, an order to return the funds, or removal as executor.
For longer administrations, California Rule of Court 7.701 lets the court approve an allowance of statutory fees on account before final distribution, based on the estimated total compensation payable as of the petition date.7Judicial Branch of California. Rule 7.701 – Allowance on Account of Statutory Compensation That gives you a way to receive partial compensation during a probate that stretches over a year or more, with the final accounting reconciling what was already paid against the full statutory amount.
Taxes on Executor Fees
Executor compensation is taxable income. How you report it depends on whether you serve professionally or stepped in once for a relative or friend.
A nonprofessional handling an isolated estate reports the fee on Schedule 1 of Form 1040 as other income and does not owe self-employment tax. The Social Security Administration has long held that this kind of one-time fiduciary service is not a trade or business, so the fees fall outside self-employment income.8Social Security Administration. SSR 63-46 – Self-Employment, Trade or Business, Administrator or Executor Professional fiduciaries who manage multiple estates report fees on Schedule C and owe both income tax and self-employment tax. The same treatment applies if you actively operate a business belonging to the estate while serving as executor.
Waiving the Fee
You can decline compensation entirely. Family members serving as executor for a parent often waive their fee, especially if they’re also a primary beneficiary. The fee is taxable income to the executor but reduces the estate’s value, so a beneficiary-executor sometimes keeps more money overall by waiving the fee and taking a larger share of the inheritance instead. The right answer depends on your tax situation and your share of the estate, so it’s worth running the numbers both ways before deciding.