When someone passes away, the executor handles the estate’s affairs. Executors often receive compensation for their time and effort, known as executor fees. These fees come from the estate itself, and sometimes, family members may question the amount requested. Disputes over executor fees can arise if beneficiaries feel the fees are too high or not justified.
What counts as reasonable compensation?
Maryland courts define reasonable compensation based on the time, effort, and complexity of the work performed. The state places limits on executor fees, usually allowing up to 9% of the estate’s value. However, what qualifies as reasonable depends on the specific duties completed. For larger estates or complex cases, courts might permit higher fees.
How family members can challenge fees
If a family member wants to challenge executor fees, they can raise their concerns in probate court. They need to provide evidence that the fees charged exceed what the work required or show that the executor did not perform duties properly. The court then reviews the executor’s records, including time logs, receipts, and any other documentation.
Possible outcomes of a fee dispute
When a family successfully contests executor fees, the court can adjust the compensation to a lower rate. This helps ensure that the estate’s assets go toward beneficiaries as intended. If the court finds the fees reasonable, the executor keeps the original amount. In rare cases, ongoing disputes may lead the court to remove the executor and appoint a new one.
Protecting the estate’s value
Disputes over executor fees can affect both family relationships and the estate’s value. By understanding guidelines, families can make informed decisions, ensuring fair compensation while protecting the estate’s assets.