Executor Compensation in Illinois: Fees, Rules & Calculations
In Illinois, executor compensation is governed by state statute and typically ranges from 5% to 10% of the estate's value, with specific percentages varying based on estate size and complexity. Executors may also receive reasonable fees for extraordinary services beyond standard administration duties.
Illinois Statutory Executor Fee Structure
Illinois statute 755 ILCS 5/18-10 establishes executor compensation guidelines based on estate value:
- First $100,000: 5% of value
- Next $100,000: 4% of value
- Above $200,000: 3% of value
Factors Affecting Executor Compensation
| Factor | Impact on Fees | Typical Range |
|---|---|---|
| Estate Size | Larger estates have lower percentage rates | 3-5% total |
| Complexity | Complex estates may justify higher fees | Up to 10% |
| Extraordinary Services | Additional hourly fees possible | $50-150/hour |
Common Executor Fee Scenarios
- Small Estate ($50,000): $2,500 (5% of value)
- Medium Estate ($300,000): $11,000 (5% first $100K, 4% next $100K, 3% remainder)
- Large Estate ($1M): $32,000 (5% first $100K, 4% next $100K, 3% remainder)
Executor Fee Approval Process
Executor fees must be approved by the probate court before payment. The executor submits a detailed accounting of services rendered and proposed compensation. Beneficiaries can object to proposed fees if they believe compensation is excessive.
Tax Considerations for Executor Fees
Executor compensation is taxable income and must be reported on individual tax returns. Unlike inheritances, executor fees are subject to income tax. Executors should consider estimated tax payments if fees exceed certain thresholds.
Executor Fee Waivers
Executors may choose to waive compensation entirely, particularly when serving as a family member or close friend of the deceased. This decision must be documented in court filings to avoid confusion about fee entitlement.