Executor Compensation NJ

[Sarah Ann]

In 4/2000 my cousin, who lived in NJ, died & I was the Executor. Her wishes were many, her assets not known, & I spent a great deal of time driving 150 miles one way to her house & stayed in motels. I could not work during this time because of my duties.The Estate was 700,000$. My attorney says my compensation as Executor is 3.5 % for the first $200,000 and then 2% for the remains. He states that the value of the house she owned, along with her posessions, and car do not factor into the fee as a %. The vast majority of the Estate goes to charity.

I would be very thankful for any information with regards to the Executor's compensation. Thank you very much in advance.

 

[advisor10]

3-25-2002

DEAR SARAH ANN:

Unless there has been a recent change in the New Jersey Probate Law, then it seems as if you were given incorrect information (although it was perhaps an innocent mistake) from that attorney about executor fees in New Jersey.

EXECUTOR FEES IN NEW JERSEY:

5% OF THE FIRST $200,000 ESTATE VALUE, plus
3.5% OF EXCESS UP TO $1,000,000; plus
2% OF THE BALANCE OVER $1,000,000

In most states, the house and the car ARE INCLUDED as estate assets for valuation, so you really do need to get a second opinion from at least 2 other probate attorneys about this matter.

There is QUITE A SUBSTANTIAL DIFFERENCE in an executor fee of $17,000 (computed under the first method you were given) as opposed to $27,500 (computed under the RATE I FURNISHED TO YOU)!!!!!

If a local library carries your state law books, you could even look up the law yourself, but it would be preferable to get a professional opinion on a matter of such importance as this.

Thank you for your devotion and effort in getting your cousin's estate affairs taken care of.

SINCERELY,

advisor
[email protected]