Executor Compensation and Fees (VI)
If the will does not specify how executor compensation should be calculated, VI estates must follow state compensation rules (see VI calculator below).
By statute, an executor for a Virgin Islands estate is entitled to "just" compensation. 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 VI 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 $400K estate which required 700 hours of work might generate $16K 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)
In the Virgin Islands, even if a will specifies the compensation for the executor, the executor may renounce the relevant provision within 10 days of being assigned executor, and be entitled to "just" compensation (as determined by the court).
VI Compensation Calculator
EstateExec provides the following executor compensation estimator for VI estates, but please keep in mind that there are no hard and fast rules for VI 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.
See also Compensation for general remarks on executor compensation.