Executor Compensation and Fees (NJ)
If the will does not specify how executor compensation should be calculated, NJ estates must follow state compensation rules (see NJ calculator below).
In New Jersey, the estate executor is known as a "fiduciary".
New Jersey law sets base compensation according to the gross value of the estate:
- 5.0% on the first $200K
- 3.5% on the next $800K
- 2.0% on anything more
So, for example, a New Jersey estate worth $100K would yield $5K in executor fees, and one worth $600K would generate $24K in executor fees.
Note that assets with named beneficiaries (such as an IRA) are not normally included in the above calculations, since they are not considered to be part of the probate estate, and pass directly to the beneficiaries.
You are also entitled to 6% of the income earned by the estate. Portions of income required to be withheld for tax purposes should still be included in this calculation.
Finally, the court can also allow additional compensation for "extraordinary" services. Common interpretations of "extraordinary" include overseeing the sale or lease of real estate, running a business, conducting litigation, preparing tax returns yourself, handling tax audits, and so on.
If the will specifies a particular compensation, you may renounce this compensation in writing to the court, and instead be compensated according to the general statutes described above.
Multiple Executors: If there are multiple executors, the total compensation is increased by 1% of the gross value of the estate per additional executor. In dividing total compensation among executors, no executor may receive greater than the amount a single executor would be due.
NJ Compensation Calculator
EstateExec provides the following executor compensation estimator for NJ estates, but please keep in mind that circumstances may vary, and that there may be special situations addressed by local custom or law. By using this estimator, you acknowledge that EstateExec provides any results as informational input only, not as legal advice, and cannot be held responsible for any inaccuracies for, or misunderstandings about, any given estate.
You can use this calculator now, but if you use EstateExec to help you track the settlement process, it will automatically analyze your estate and suggest values for the Estate Value and Income fields below (you can create an estate for free).
See also Compensation for general remarks on executor compensation.