The other funds were transferable upon death. Executor’s or administrator’s fee: Pay yourself your executor’s fee, which must be reasonable. Other provinces, like where I live in Ontario, have higher probate fees. Learn how your comment data is processed. For example, if in the last year, executor fees were typically 1.5%, then 1.5% would be considered reasonable and 3% may be unreasonable. The executor must mail out notices and publish notice in the newspaper, file documentation with the court, secure, preserve and maintain the property of the estate, liquidate assets that need to be liquidated and prepare an inventory and an accounting of everything that the executor does. However, even the definition of reasonable compensation differs between states. 0 users found helpful. Who Pays for Probate? When you die, an executor must collect your remaining assets, pay your creditors, and distribute your property according to a will -- or if you do not leave a will, according to state law. Find the laws governing the probate administration of real estate at 755 ILCS 5/20. § 5/6-13.) Administrators and executors do essentially the same job and have several duties as part of the probate process. The handling of a probate administration can take nine months or more. This type of fee may be appropriate in the case of a contested will, where it is uncertain whether any money will be won. Theoretically, cleaning out a house involves a different kind of skill and expertise than negotiating the sale of property and overseeing the transaction. Contingency fees A contingency fee is a percentage of what a client "wins." In these circumstances, you must: Category: Estate Law. In this article we explain the responsibilities of an executor in Illinois probate cases. Percentages done in Illinois or is it hourly? If the executor waives the compensation, each beneficiary would be entitled to $50,000. If formal probate is not required, the legal fee can be under $1,000.00. When you can’t, you should still be reimbursed for essential expenses. The tariff sets claimable executor’s compensation at 2.5% of the value of each of the capital receipts, income receipts, capital disbursements and income disbursements, and also permits an overall care and management fee of 2/5 of 1% of average annual value of the assets. Batavia, IL 60510 Id. What is the Executor/Administrator Fee in Illinois? Illinois laws establish the rights and duties of an executor of a will in the state. For additional articles on various topics of law, visit the general Drendel & Jansons Law Group Blog. If you don't name someone in your will or if you don't leave a will, the court appoints someone, who's called an estate "administrator." This accounting is a requirement of the probate court before the executor or administrator may distribute remaining estate assets to heirs and beneficiaries. Illinois law therefore provides that administrators and executors are entitled to "reasonable" compensation from the estate. Would that percentage be 3%? How Well Can You Answer Some Common Estate Planning Questions? Share this conversation. The Probate Representative. Any fees paid to an individual executor are subject to income tax. Like many other states, Illinois also prohibits people who have felony convictions from serving as executor. The Illinois statute states that the fees must be "reasonable" and that they must be approved by the probate court. As a practical matter, however, its always best to try to reach agreement with the beneficiaries of the estate. An executor has the right to request a fee of their choosing and must submit that amount to the probate court for approval. 6-3) Sec. These factors include the size of the estate, the skill with which the work was performed, and the time involved. Submitted: 9 years ago. 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