Key Takeaways
- Executors in Victoria can receive payment through reimbursement of expenses and executor's commission, which are governed by legal rights and agreements.
- Executor's commission is not automatic and can be determined by provisions in the will, agreements among beneficiaries, or through court approval if disputes arise.
- Typical commission percentages awarded by courts range from 1% to 3% for standard estates, with up to 5% for exceptionally complex cases.
- Disputes over executor fees often arise between executors and beneficiaries, necessitating transparent communication and, if needed, mediation or court intervention.
- Executors must act in good faith, maintain detailed records for claims, and seek legal guidance to navigate their responsibilities and rights effectively.
Executor fees, probate duties, will execution in Victoria, and estate administration are common sources of questions for families in Victoria. A key concern is: does the executor of a will get paid?
This comprehensive guide explains executor rights, available payment options, commission claims, and common disputes. Whether you are acting as an executor or are a beneficiary wanting clarity, this article provides practical, legally accurate insights into executor compensation under Victorian law.
Understanding the Role of an Executor
An executor is a trusted individual named in a will to manage the deceased’s estate. This role carries significant legal responsibilities, which may include:
- Applying for a Grant of Representation or probate
- Locating, securing, and valuing estate assets
- Paying outstanding debts, taxes, and expenses
- Managing ongoing estate administration obligations (e.g., property maintenance)
- Finalising accounts and distributing assets to beneficiaries
Estate administration can take months or even years depending on complexity. Executors face personal liability for mistakes, requiring careful diligence and transparency.
The role also involves managing family dynamics, potential beneficiary disputes, and complex finances, adding emotional and practical pressures to will execution in Victoria.
For a broader overview of executor responsibilities, see our Executor of a Will in Victoria guide.
Does the Executor of a Will Get Paid in Victoria?
In Victoria, executor fees fall into two categories: reimbursement of expenses and executor’s commission.
1. Reimbursement of Expenses
Executors are legally entitled to recover reasonable out-of-pocket expenses incurred while managing the estate. These may include:
- Court filing fees for probate and other probate duties
- Professional advice (legal or accounting services)
- Travel and accommodation costs for estate management
- Property upkeep expenses (insurance, repairs)
These reimbursements are not discretionary; they are a right under Victorian succession law. Executors should keep receipts and maintain transparent records to support claims.
2. Executor’s Commission
Executor’s commission is not automatic. Unlike expense reimbursement, commission compensates executors for their time, skill, and effort in administering the estate. This payment reflects the significant responsibilities involved in estate administration.
Executors may receive commission through:
- Provision in the will – The will may specify a fixed payment or percentage of the estate.
- Beneficiaries’ agreement – Beneficiaries can consent to a proposed payment without court involvement.
- Court-approved commission – If no agreement is reached, the Supreme Court of Victoria can determine an appropriate commission amount.
How Much Commission Can Executors Claim?
Court Assessment Criteria
When executors seek commission via court application, judges consider several factors:
- The overall size and complexity of the estate
- Level of responsibility and risk undertaken by the executor
- Skill and time spent during estate administration
- Any disputes or litigation handled
- The outcome achieved (e.g., preserving or increasing estate value)
Typical Commission Percentages
Courts have historically awarded commissions in the range of:
- 1% to 3% of the estate’s value for standard administration
- Up to 5% for exceptionally complex or demanding estates
For example:
- A straightforward $1 million estate may attract ~$20,000 commission (2%).
- A large $5 million estate involving multiple properties, international assets, and legal disputes might justify 3%–5% ($150,000–$250,000).
This process ensures that executors are rewarded in proportion to their responsibilities while protecting beneficiaries from excessive claims.
Professional Executors: Fees and Commission Rules
Professional executors — often lawyers or accountants — may charge professional fees for specific services, such as:
- Drafting legal documents
- Managing estate tax obligations
- Facilitating complex property transfers
However:
- These fees must be fully disclosed to beneficiaries
- The professional cannot double-dip by charging full legal fees and claiming full executor’s commission for overlapping tasks
- Courts may adjust commission claims if substantial professional fees have already been charged
These safeguards prevent excessive deductions and protect beneficiaries’ interests. In some cases, appointing a professional executor can save time and prevent costly mistakes in complex estates, even after considering their fees.
Applying for Executor’s Commission: Step-by-Step
When beneficiaries do not agree to pay commission voluntarily, executors can apply to the Supreme Court of Victoria. The process includes:
- File an Application – Prepare a detailed affidavit outlining your work as executor, hours spent, responsibilities undertaken, and any challenges faced during probate duties.
- Provide Estate Accounts – Submit full accounting of estate assets, liabilities, distributions, and expenses to the court.
- Justify the Claim – Demonstrate why compensation is fair and necessary, referencing complexity and personal contribution.
- Court Assessment – The judge evaluates the evidence, considering fairness to beneficiaries and estate size.
- Award of Commission – If approved, the court orders payment, usually as a percentage of the estate’s value.
For official guidance, see Supreme Court of Victoria – Probate and Administration.
Executors should seek legal assistance when preparing these applications, as incomplete documentation can lead to delays or reduced compensation.
Disputes Over Executor Fees
Disagreements between executors and beneficiaries are common. Typical issues include:
- Beneficiaries objecting to commission as excessive
- Multiple executors disputing how payment is split
- Concerns about professional fees and double charging
To resolve disputes:
- Executors should maintain open communication and transparent records
- Mediation can help achieve agreement without litigation
- If unresolved, the Supreme Court provides an impartial determination
Having clear, early conversations about expected payments often prevents disputes and promotes smoother estate administration.
Need help resolving executor fee disputes or understanding your payment rights? Contact our Wills and Estates Lawyers today for clear advice and practical solutions.
Real-World Example: Court-Approved Commission
Consider an executor managing an estate involving:
- Three properties across multiple states
- Complex tax liabilities
- Multiple contested beneficiary claims
Over 18 months, the executor worked full-time, managing litigation and preserving estate value. The Supreme Court awarded 3.5% commission, equating to $70,000 on a $2 million estate, recognising the workload and risks involved.
This example highlights how courts assess both estate value and executor effort when determining commission. It also shows that courts can award amounts higher than standard rates when the role requires exceptional commitment.
Important Legal Considerations
When navigating executor payments and duties, it is crucial to understand the broader legal principles that protect both executors and beneficiaries.
Below are key considerations to keep in mind:
- Acting in Good Faith – Executors must avoid conflicts of interest and act in beneficiaries’ best interests.
- Transparency & Record-Keeping – Detailed logs of tasks and costs strengthen commission claims and defend against objections.
- Tax Implications – Executor commission is usually taxable income under Australian law. Professional tax advice is recommended.
- Seek Legal Guidance – Expert advice ensures compliance with Victorian succession laws and helps avoid costly errors.
Unsure about your legal obligations or potential commission? Speak with our expert Wills and Estates team for tailored advice on will execution in Victoria and estate administration.
Practical Steps for Executors
To help executors manage their role effectively and avoid common pitfalls, consider these practical steps:
- Review the Will – Check for any commission or fee provisions.
- Track Expenses and Time – Maintain accurate records to justify claims.
- Communicate Early – Disclose commission intentions to beneficiaries upfront.
- Apply to Court if Needed – Seek judicial approval if agreement cannot be reached.
- Engage Professional Support – Lawyers and accountants can assist with complex estate issues.
Frequently Asked Questions
Can an executor refuse payment in Victoria?
Yes. Executors can waive commission, which is common in family-administered estates.
How do I apply for executor commission?
File an application with the Supreme Court of Victoria, including records of duties performed and time spent.
Can multiple executors receive commission?
Yes. The court can divide commission based on each executor’s level of involvement.
What if beneficiaries dispute fees?
Disputes can be resolved through negotiation or mediation; unresolved issues go to court for final determination.
Are executor fees taxable?
Yes. Executor commission is considered taxable income and should be reported accordingly.
Can professional executors charge more than family executors?
Yes, provided fees are disclosed and there is no double charging. Courts oversee fairness and proportionality.
Is it better to appoint a professional executor?
For complex or high-value estates, appointing a professional executor can ensure smoother administration and legal compliance. However, it incurs higher costs than appointing a family member or trusted friend.
Executor Payments: Protecting Your Rights and Duties
Serving as an executor is both a privilege and a significant legal responsibility. While expense reimbursement is straightforward, securing fair executor commission often requires clear will provisions, beneficiary consent, or court approval. Victorian courts carefully assess claims to ensure executors are compensated appropriately without diminishing beneficiaries’ entitlements.
At Pentana Stanton Lawyers, our experienced Wills and Estates Lawyers can guide you through executor payments, commission disputes, probate duties, and all aspects of will execution in Victoria.
Book a confidential consultation today and ensure your executor duties and will execution in Victoria are fulfilled while your rights remain fully protected.
