Executor Compensation and Fees (TX)

If the will does not specify how executor compensation should be calculated, TX estates must follow state compensation rules (see TX calculator below).

In Texas, an executor is entitled to 5% of all amounts the executor actually receives or pays out in cash in the administration of the estate, not to exceed 5% of the estate gross value.

This calculation does not apply to receiving funds that, at the time of the decedent's death, were on hand or stored in a financial institution (e.g., cash, certificate of deposit, money market account, etc.), or to paying out cash to heirs. It also does not normally apply to collecting the proceeds of a life insurance policy, unless the collection proves unusually burdensome.

Assets with named beneficiaries (such as IRAs) are also not included in these calculation.

So for example, a Texas estate with a gross value of $600K at death, with $100K in cash, that incurs $25K in estate expenses, would generate $26,250 in executor commissions (see calculator below).

The court may allow additional compensation for managing a business, or if the normal calculations would generate an unreasonably low fee.

See Texas Estates Code § 352.002, which became effective in 2014 and slightly modifies the old Probate Code § 241.

TX Compensation Calculator

EstateExec provides the following executor compensation estimator for TX 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 perform the sometimes complex calculations to provide inputs for the fields below (you can create an estate for free).

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See also Compensation for general remarks on executor compensation.

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