Understanding How New York Pays the Person Who Settles an Estate
Key Takeaways: SCPA 2307 sets default executor commissions when a will doesn’t specify compensation, governing executors and administrators rather than trustees (covered under SCPA 2308 and 2309). Commissions follow a tiered schedule: 5% on the first $100,000, 4% on the next $200,000, 3% on the next $700,000, 2.5% on the next $4,000,000, and 2% above $5,000,000, a $1 million estate yields $34,000, split half for receiving assets and half for paying them out. Percentages apply to principal received and paid out, excluding specifically bequeathed property, unsold real property, jointly held property, Totten trust accounts, pensions, life insurance, and IRAs payable to named beneficiaries. Where value is $100,000-$300,000, up to two executors may each take full commission; at $300,000 or more, up to three may each take full commission. Special rules cover corporate fiduciaries under SCPA 2307(f) and attorney-executors under SCPA 2307-A. Wills may cap or eliminate compensation entirely. Commissions are taxable income, paid from estate assets, and disclosed in the executor’s accounting.
When a Brooklyn family opens an estate, one question surfaces immediately: what does the executor get paid, and who decides? In New York, statute governs rather than negotiation. SCPA 2307 sets default executor commissions when the will doesn’t specify compensation, sitting within the Surrogate’s Court Procedure Act, which governs estate administration in the Kings County Surrogate’s Court that serves Brooklyn.
If you’ve been named in a will or are serving as a fiduciary, Goldberg Sager & Associates can walk you through how the numbers apply to your estate. Call 718-645-6677 or contact us now to discuss your responsibilities.
What SCPA 2307 Actually Covers
The statute covers executors and administrators, fiduciaries other than trustees. Trustee compensation is handled separately under SCPA 2308 and SCPA 2309, so serving in both roles means navigating two different rules. This distinction matters when a will creates a testamentary trust continuing after the estate closes.
SCPA 2307 sits within Article 23, the article governing costs, allowances and commissions in estate proceedings. Placing fiduciary pay in statute reflects a policy choice: compensation is set by law, not private bargaining. Absent contrary will provisions, an executor is entitled to statutory commission, though courts may reduce or deny commissions for misconduct or breach of duty.
Reading the statutory language directly often resolves scope disputes. The New York executor commission statute addresses situations including corporate fiduciaries. Under SCPA 2307(f), where a will specifies rates for a corporate executor, or the executor agreed to specific rates, or the will references the executor’s published fee schedule, the corporate executor is compensated per those provisions even if not executed with will formalities.
The Commission Schedule in NY at a Glance
New York executor commissions are tiered percentages tied to money and property the fiduciary receives and pays out. Statutory rates decrease as estates grow larger, meaning small and mid-sized Brooklyn estates pay proportionally higher rates than multimillion-dollar ones.
| Portion of the Estate | Commission Rate |
|---|---|
| First $100,000 | 5% |
| Next $200,000 | 4% |
| Next $700,000 | 3% |
| Next $4,000,000 | 2.5% |
| Above $5,000,000 | 2% |
A $1 million estate generally produces $34,000 total commission: $5,000 on the first bracket, $8,000 on the second, and $21,000 on the third. The statute treats one-half as earned for receiving assets and one-half for paying them out. Commissions are taxable income, typically reported on the recipient’s personal income tax return.
💡 Pro Tip: Before accepting commission, compare it against your inheritance share. Family members who inherit may prefer waiving compensation, since inheritances are taxed differently than fiduciary income.
How the Commission Base Is Measured
Commissions are computed on principal the fiduciary actually receives and pays out, not everything the decedent owned. Specifically bequeathed property is excluded, and unsold real property is often outside the commission base. Jointly held property, Totten trust accounts, pension plans, life insurance proceeds, and IRAs payable directly to named beneficiaries don’t pass under the will and are typically excluded. Separate rules may allow additional annual commission on income collected, such as rents. For Brooklyn households whose largest assets are a jointly titled home and retirement account, these exclusions may dramatically shrink the commission base.
This measurement rule explains why identically valued estates can produce different executor pay. Careful asset classification early on helps avoid accounting objections later. Those preparing for first filing may benefit from probate court process tips.
When More Than One Executor Serves
If the value is $100,000-$300,000, up to two executors may each receive full commission; at $300,000 or more, up to three may each receive full commission. When fiduciaries exceed these limits, they generally divide available commissions unless the will provides otherwise; below $100,000, a single commission is divided. Co-executors should discuss division openly at the outset.
Corporate and Professional Fiduciaries
Family executors frequently waive commissions, but institutional fiduciaries generally won’t. Banks and trust companies won’t serve without compensation and may charge more than statutory figures where the will or agreement authorizes those rates. An overview of what an executor does can help testators decide whether professional fiduciaries are worth the cost.
The Attorney-Executor Exception
SCPA 2307-A addresses attorney-executors, who must obtain signed written acknowledgment from the testator or may be limited to one-half statutory commission. This commonly overlooked rule ensures testators understand that the attorney drafting the will may also collect fiduciary commission. Where an attorney or affiliated attorney renders legal services in connection with the executor’s official duties, that attorney is entitled to just and reasonable compensation for such legal services in addition to the executor’s statutory commissions, meaning commissions and legal fees are cumulative rather than mutually exclusive.
Limiting or Waiving Commissions Under SCPA 2307 Executor Commissions New York Rules
A decedent can limit or eliminate executor compensation in the will. If the will caps compensation, the fiduciary is limited to that amount, though named executors finding terms unacceptable may decline to serve. Testators may also specify that executors must waive commissions to be eligible.
Executors retain flexibility when the will is silent. Common approaches include:
- Waiving commissions entirely, often when the executor is also a primary beneficiary
- Accepting a lesser sum than the statute allows
- Documenting alternate arrangements in writing to reduce dispute risk
- Confirming in advance whether co-fiduciaries intend to share or waive portions
💡 Pro Tip: Put any waiver or reduced-commission agreement in writing before the first major distribution. Oral understandings among siblings are often remembered differently once accounting is filed.
Where Commissions Show Up in the Estate Timeline
Commission amounts are typically calculated and disclosed in the executor’s accounting, though fiduciaries may seek advance payment with court approval under SCPA 2311. Accounting may be informal and approved by beneficiary consent, or judicially settled in Surrogate’s Court when consent isn’t available or disputes arise. Accounting will contain commission calculations unless the executor waived compensation.
Commissions are payable from estate assets, reducing what beneficiaries ultimately receive. Beneficiaries occasionally object to claimed amounts, and courts may consider whether the fiduciary properly classified assets or duplicated compensation. Outcomes depend on specific facts and record quality.
Executors anticipating scrutiny should keep contemporaneous records of receipts, disbursements, and asset values. Working with a scpa 2307 executor commissions new york lawyer early helps structure accountings defensibly.
Frequently Asked Questions
1. Does every New York executor automatically receive a commission?
An executor who completes the work is generally entitled to statutory commission absent contrary will provisions or agreement. However, wills may cap or eliminate compensation, many family executors voluntarily waive it, and courts may reduce or deny commissions for misconduct. Whether commission is payable depends on the will’s language and assets involved.
2. Are life insurance proceeds and IRAs included in Brooklyn executor pay calculations?
Typically not. Assets passing directly to named beneficiaries, life insurance, IRAs, pension plans, and in-trust-for accounts, don’t pass under the will and are excluded from the commission base. Jointly held property is likewise excluded, as is specifically bequeathed property and unsold real estate.
3. What happens if three or more people are named as co-executors?
Where value is $300,000 or more, up to three executors may each take full commission, and additional fiduciaries generally divide three commissions unless otherwise specified. Where value is $100,000-$300,000, up to two executors may each take full commission, with more than two dividing two commissions.
4. Is an executor commission taxable income in New York?
Commissions are taxable income, typically reported on the recipient’s personal income tax return. This differs from inheritances, which are taxed under different rules. A tax professional can confirm how the distinction applies to your circumstances.
5. Where are commission disputes resolved for Brooklyn estates?
Disputes over new york executor compensation are addressed in accounting proceedings before the Surrogate’s Court with jurisdiction, typically Kings County Surrogate’s Court for Brooklyn residents. Courts consider the fiduciary’s records, asset classifications, and the will’s terms.
Bringing the Numbers and the Responsibility Together
SCPA 2307 gives New York families a predictable framework: a tiered commission schedule applied to principal received and paid out, with rules for co-fiduciaries, corporate executors, and attorney-executors under SCPA 2307-A. The statute reduces guesswork but doesn’t eliminate judgment calls about which assets count, whether waiver makes sense, and how to present calculations in accountings beneficiaries will accept.
If you’re serving as executor in Brooklyn or anywhere in New York City and want clarity before filing, Goldberg Sager & Associates is ready to help. Call 718-645-6677 or schedule a consultation to review your estate’s commission calculation and accounting obligations.
Disclaimer: This content is for informational purposes only and is not legal advice. Every case is unique, and results may vary. Consult an attorney about your specific circumstances.
