executor fees?

[moeskeeter]

What is the name of your state (only U.S. law)? Washington

I am the executor of my Aunts estate. Everything has been settled except for a small house that is being rented, have not been able to sell it. I split the yearly income from the rental equally with 3 siblings. I have never taken anything additional to cover my time. What should or could I charge for the time?

 

[anteater]

RCW 11.48.210
If testator by will makes provision for the compensation of his or her personal representative, that shall be taken as his or her full compensation unless he or she files in the court a written instrument renouncing all claim for the compensation provided by the will before qualifying as personal representative. The personal representative, when no compensation is provided in the will, or when he or she renounces all claim to the compensation provided in the will, shall be allowed such compensation for his or her services as the court shall deem just and reasonable. ...

Have you kept track of your hours? Usually, the hourly rate that you receive in your full time job would be considered reasonable and will fly with the court. Remember that the compensation is taxable income.

 

[tranquility]

Have you kept track of your hours? Usually, the hourly rate that you receive in your full time job would be considered reasonable and will fly with the court. Remember that the compensation is taxable income.

But, unless you do this regularly, just put it under other income and don't apply self employed income tax to it.

 

[moeskeeter]

Have you kept track of your hours? Usually, the hourly rate that you receive in your full time job would be considered reasonable and will fly with the court. Remember that the compensation is taxable income.

I have kept track of the expenses but not the time I have put in managing the rental and estate, this includes several weekends cleaning the house and property which is located 4 hours away. I have been doing this over a 20 year period. I think I could come up with a good guestimate.

 

[tranquility]

I have kept track of the expenses but not the time I have put in managing the rental and estate, this includes several weekends cleaning the house and property which is located 4 hours away. I have been doing this over a 20 year period. I think I could come up with a good guestimate.

Ballpark guestimates are not evidence. Work done in previous years would probably not be a part of your fees as they should usually be paid at least yearly. An "executor" who has been doing this for 20 years? If there was not a trust funded, you should not be doing this for that long. The house should have been distributed to the beneficiaries and any separate agreement would rule. I find it highly unlikely a court would allow any "executor" fees after 20 years absent profound reasons not even hinted at here. Close the estate.

 

[anteater]

An "executor" who has been doing this for 20 years? If there was not a trust funded, you should not be doing this for that long. The house should have been distributed to the beneficiaries and any separate agreement would rule. I find it highly unlikely a court would allow any "executor" fees after 20 years absent profound reasons not even hinted at here. Close the estate.

I was tempted to ask what exactly was going on and why wasn't the property distributed to the beneficiaries if it could not be sold. But I didn't really feel like wading into that swamp.

Little did I realize that it was a 20-year swamp. (That just doesn't sound right.)

 

[moeskeeter]

Ballpark guestimates are not evidence. Work done in previous years would probably not be a part of your fees as they should usually be paid at least yearly. An "executor" who has been doing this for 20 years? If there was not a trust funded, you should not be doing this for that long. The house should have been distributed to the beneficiaries and any separate agreement would rule. I find it highly unlikely a court would allow any "executor" fees after 20 years absent profound reasons not even hinted at here. Close the estate.

I don't know if all this was handled properly and yes I am sure I have made some mistakes. After the estate cleared probate I tried to sell the house several times but it is a very old house that lacks a proper foundation so banks would not finance it. So I have been stuck with it untill it sold recently.

 

[tranquility]

I don't know if all this was handled properly and yes I am sure I have made some mistakes. After the estate cleared probate I tried to sell the house several times but it is a very old house that lacks a proper foundation so banks would not finance it. So I have been stuck with it untill it sold recently.

What did the IRS say when you filed the returns for the rental in the estate? I'd forget about the fees. I suspect you want this to just go away.

 

[anteater]

Pulling on the waders...

After the estate cleared probate... So I have been stuck with it untill it sold recently.

What exactly does that mean?

Who exactly owned the property until it was recently sold?

"Cleared probate" is a very inexact phrase. But, when somebody says something like that, I assume that they mean that any claims against the estate were paid, the remaining assets distributed to the beneficiaries, and the probate case closed.

 

[moeskeeter]

Pulling on the waders...



What exactly does that mean?

Who exactly owned the property until it was recently sold?

"Cleared probate" is a very inexact phrase. But, when somebody says something like that, I assume that they mean that any claims against the estate were paid, the remaining assets distributed to the beneficiaries, and the probate case closed.

When probate was settled all claims were paid we were left with the house, I assume equall ownership to those named in the will.

 

[tranquility]

When probate was settled all claims were paid we were left with the house, I assume equall ownership to those named in the will.

Probate is done. If the house has not been titled to all parties, you may need a court order and should get one immediately. If the house is titled to all parties, you are not an executor and deserve no fees for your work beyond your agreement with the other owners.

 

[moeskeeter]

Probate is done. If the house has not been titled to all parties, you may need a court order and should get one immediately. If the house is titled to all parties, you are not an executor and deserve no fees for your work beyond your agreement with the other owners.

Nothing was changed on the title to the house it was still in my aunts name at the time of the sale.

 

[anteater]

Nothing was changed on the title to the house it was still in my aunts name at the time of the sale.

Let me ask a couple things.

Did you really mean to say that your aunt passed away 20 years ago? And that probate was initiated more or less 20 years ago?

Did you retain an attorney to assist you with probate?

 

[tranquility]

Nothing was changed on the title to the house it was still in my aunts name at the time of the sale.

See an attorney. It is unlikely you had the power to keep the estate open this long. I am uncertain as to if you could even sell the property as fiduciary at this time without getting your letters reissued. You should have been filing fiduciary tax returns for all the years the house was earning income and I suspect you were not because you would have received repeated contact from the IRS demanding an answer why the estate was kept open for such a long time. The representations on your disclosure were most likely of the type an executor would make (As if you had no direct knowledge of the facts.) when, from the amount of time you controlled the property, a warranty deed would have been appropriate.

I don't want to scare you as all this may just be nothing and everyone is going to go away happy, but, you almost assuredly placed yourself at risk from any of a number of people. I would be interested in how you will report the capital gain on a property held for 20 years in an estate that really should not be open in any event. See an attorney. I suspect he will advise you not to seek any compensation for your acts for any of a number of reasons. Frankly, a lot of this does not make sense to me and I suspect we are, at least a bit, talking past one another. But, take all the paperwork, including probate documents to an attorney for him to review and advise you. Maybe it's nothing and all you're out is a couple hundred dollars for the consultation. Or, maybe it's something and early representation will help you from a lot in damages and hassle down the line.

Attorney, attorney, attorney.

 

[moeskeeter]

Let me ask a couple things.

Did you really mean to say that your aunt passed away 20 years ago? And that probate was initiated more or less 20 years ago?

Did you retain an attorney to assist you with probate?

yes she died in 1992, an attorney handled the probate, he passed away a while ago.

When the probate was settled who had ownership of the house? Is it still considered part of the estate or should we have had it put in our name?