Executor Compensation and Fees (RI)
If the will does not specify how executor compensation should be calculated, RI estates must follow state compensation rules (see RI calculator below).
Rhode Island statute merely states that executors shall be compensated whatever the probate court considers "just".
In practice, this means that the following factors are often considered:
- Nature of the work involved (time, effort, difficulty, skills required)
- Compensation customarily charged (in the community for similar services)
- Size of the estate (and the results obtained)
- Any time limitations
- Experience and capabilities of the person
It's common in RI to use a "services-rendered" approach, and bill by the hour (the hourly rate can be determined according to the factors above). Executors have also traditionally set fees as a percentage of the overall estate value.
So for example, a $500K estate which required 700 hours of work might generate $19K in executor fees (see calculator below)
Whatever approach you decide, it is important that you keep detailed records of your efforts in case you need to justify your fee in court:
- Nature of the task (e.g., Drove to bank to get medallion stamp for IBM stock)
- Amount of time spent (e.g., 2 hours)
- Hourly rate for the task (e.g., $35/hour)
- Results (e.g., sold the car for Blue Book value)
While compensation varies greatly according to a variety of factors, the calculator below indicates that a typical fee for a $100K estate that required 200 hours of standard work might be around $5K, and for a $1M estate that required 550 hours of standard work and 80 hours of professional labor, $34K might be appropriate.
Reference Rhode Island General Laws § 33-14-8.
RI Compensation Calculator
EstateExec provides the following executor compensation estimator for RI estates, but please keep in mind that there are no hard and fast rules for RI estates, and ultimately you must determine what would be reasonable for your particular circumstances. 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.
Below EstateExec provides two compensation approaches: you can decide which, if either, is appropriate for you. The first uses a sliding percentage scale based on the total estate gross value (the larger the estate, the smaller the percentage); the second simply compensates the executor for the value of his or her time. See estimation methodology for details.
You can use this calculator now, but if you use EstateExec to help you track the settlement process, it will automatically calculate the inputs for you based on the estate and suggest those values in the fields below (you can create an estate for free).
See also Compensation for general remarks on executor compensation.