Executor Compensation and Fees (MB)Show Table of Contents
If the will does not specify how executor compensation should be calculated, the executor must follow provincial compensation rules (see MB calculator below).
The Manitoba Trustee Act states that estate executors are entitled to fair and reasonable allowances for their services.
Consideration Factors: Courts have interpreted "fair and reasonable" to mean that the following factors should be considered in determining a fee:
- Size of the estate
- Care and responsibility involved
- Time required
- Skill and ability demonstrated by the trustee
- How successful the trustee was
Typical Base Fee: A typical base fee for a standard estate might be 3% of the combined value of the gross assets at death and any income generated by the estate. So, for example, a standard estate with gross assets of $700,000, that generated $50,000 of income during the settlement process, would generate $22,500 in executor fees. This amount should be reduced or increased according to the consideration factors above.
Annual Fee: For estates that take a significant time to settle, the court may also allow an executor to take an annual fee, typically something on the order of 0.4% of assets under management.
Extra Fee The court may also allow an additional fee for extraordinary services, such as overseeing the sale or lease of real estate, running a business, conducting litigation, preparing tax returns yourself, handling tax audits, and so on.
Note that assets which pass directly to named beneficiaries, such as life insurance policies, are generally not included in any of the above calculations.
MB Compensation Calculator
EstateExec provides the following executor compensation estimator for MB estates, but please keep in mind that there are no hard and fast rules for MB estates, and ultimately you (and the courts) 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. See estimation methodology for calculation details.
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 Gross Assets and Income fields below (you can create an estate for free).
See also Compensation for general remarks on executor compensation.