Being an executor or an administrator isn’t easy. It takes a lot of responsibility and time. Often it is a thankless task!
Can you be compensated for your time and effort?
- the Will (if there is one) authorises payment to you; or
- the beneficiaries authorise a payment;
you are only entitled to be remunerated for your time and effort in managing the estate if you obtain an order from the Supreme Court of Western Australia for compensation (known as an ‘executor’s commission’).
How much can you be paid?
The Court will award an amount depending on various factors including:
- the complexity of the work involved in the administration;
- the time spent by the executor in connection with the administration;
- the value of the estate and the nature of the assets;
- the length of the administration;
- whether work was done by the executor personally or delegated to professionals; and
- whether the estate has benefited from the executor’s management.
The Court may take into account lengthy delays, lack of communication and inappropriate conduct by the executor to reduce or extinguish any claim for a commission.
The maximum amount that the Court can grant is 5% of the gross value of the estate.
Practical tips for claiming a commission
You can maximise your prospects of claiming an executor’s commission by:
- keeping detailed records of your management of the estate, including the time you spend;
- undertaking your duties efficiently, transparently and timeously; and
- seeking professional assistance where necessary in the course of the administration.
How do I obtain an order for an executor’s commission?
You must apply to the Supreme Court of Western Australia. If you want to make or are considering making such an application, you should seek legal advice on your prospects and the procedure.