Part of making out a will is appointing an individual to serve as executor, and today we will take a closer look at the executor of estate fees.
As we’ve mentioned in previous blogs, being an executor is a job, and it’s a job not to be taken lightly. Serving as an executor is an honor, but it also requires a significant amount of work over what could be a significant amount of time. There are assets to inventory and secure, bills and taxes to be paid, beneficiaries to accommodate and much more. That being said, it makes sense that executors are entitled to be paid a reasonable fee for their service.
What are executor of estate fees?
By law, executors are entitled to receive a fee for the work they do. Laws, and fees, will vary from state to state, but fees usually range between 2 and 5 percent of the total amount of the estate.
Since The Olear Team is located in New York State, let’s use the fees set by New York Surrogate’s Court as an example:
- For receiving and paying out money from the estate not exceeding $100,000, the executor fee is 5 percent.
- For receiving and paying out money from the estate not exceeding $200,000, the executor fee is 4 percent.
- For receiving and paying out money from the estate not exceeding $700,000, the executor fee is 3 percent.
- For receiving and paying out money from the estate not exceeding $4 million, the executor fee is 2.5 percent.
- For receiving and paying out sums exceeding $5 million, the executor fee is 2 percent.
Additionally, the executor should be aware that there are certain assets that may be part of the estate that are not considered when calculating the executor’s fee. For example, these assets may include proceeds from a life insurance policy, assets in a 401(k) plan and more. An experienced estate attorney can fill you in on these important details.
When will the executor receive payment for his or her services? The executor can expect payment after the estate’s bills are paid and before the estate is distributed to the beneficiaries.
It is also important to understand that the fee paid to an executor is indeed taxable. Again, the best advice to ensure success is to work with an experienced estate attorney and/or professional realty group such as The Olear Team.
Do you have additional questions on – Executor of estate fees: How much is paid, and when? Learn about the Olear Team’s specialized program for assisting executors and those with power of attorney.
No matter what your profession, there’s always a question or two that you hear all the time. In the real estate industry, one of the most frequently asked questions is, who pays the Realtor fees?
In most cases, the Realtor’s commission is paid by the individual selling the house. The following information should be helpful in explaining this situation.
Who pays the Realtor fees?
- First, please note that real estate agents work for a real estate broker, and all fees paid to a Realtor or real estate agent go through the broker.
- Commissions paid to Realtors are negotiable and therefore they vary from agent to agent, brokerage to brokerage and state to state. The rate of commission is usually around 6 percent.
- While all real estate commissions are negotiable, you’ll learn that not every agent will negotiate. The best, most experienced Realtors will often charge more than agents who are relatively new to the real estate profession.
- Your Realtor’s commission must be negotiated before the real estate deal is complete.
- It’s not unusual for the commission to be split evenly between the buyer’s and the seller’s agent, although a contract can stipulate that one agent will receive a greater commission.
- A Realtor earns their commission by working on your behalf and properly marketing your property. This can take many weeks, if not months, of work on your behalf.
- Some agents will work for a flat fee. However, be certain that, in return, you are not receiving limited representation.
- While not common, in some cases the Realtor may represent both the buyer and seller. This is called dual agency, and it’s actually illegal in some states. In states where it is legal, a dual agent is entitled to receive the full commission because they are representing both sides during the transaction.
So, who pays the Realtor fees? Usually the property seller, but not always. The best thing to do is to ask an experienced Realtor for their input. Please feel free to contact The Olear Team for more information!
Michael Olear, a licensed real estate broker from the Olear Team at MJ Peterson Real Estate, will present an educational seminar at Sandra Lane Senior Apartments on Wednesday, November 8 at 1 pm. The Sandra Lane Senior Apartments community is located at 705 Sandra Lane in North Tonawanda.
The seminar is open to the community and focuses on real estate topics relevant to older adults and their loved ones and caregivers, including right-sizing and simplifying a living situation, preparing for a move, legal and regulatory issues to be aware of, and available resources and tools related to these matters.
To register for the event, please contact the Olear Team at 716-880-4442.
Olear is a licensed real estate broker with thirty years of experience. He has specialized in helping older adults with their real estate needs since 1999. The Olear Realty Group, Inc. is organized as a sub chapter S corporation and supports the Olear Team/MJ Peterson Corporation in the sale of residential real estate throughout Erie and Niagara County. The team has decades of experience in meeting the real estate needs of Western New York residents. Visit olear.wpengine.com to learn more about the Olear Team’s work assisting older adults and their families.
Limited power of attorney in real estate occurs when someone gives another individual authority to legally act on his or her behalf. This action occurs quite often in real estate transactions.
Power of attorney is a legal document that is governed by state law, and those laws vary from state to state. But, in general, limited power of attorney in real estate allows an individual to sell a piece of property and handle all legal matters relating to that sale. In many cases, limited power of attorney covers a single real estate transaction such as the sale of a home or property.
An individual with limited power of attorney in real estate can:
- Legally conduct business on behalf of another individual.
- Enter into contracts.
- Change legal documents related to the specified transaction.
In a nutshell, power of attorney allows another individual to take “powerful” actions and make important decisions on your behalf. Therefore, it’s very important to grant power of attorney to an individual who you are confident will be conducting business with your best interests in mind. It is a tremendous responsibility with many legal ramifications.
Power of Attorney can be revoked, terminated or set to expire on a certain date. Durable power of attorney remains in effect even after you die or become disabled, while non-durable power of attorney becomes void should you die or become disabled.
Again, this is a legal procedure and many questions are likely to arise. For more information, please consult an experienced real estate attorney or the real estate professionals that make up The Olear Team.
While the internet has had a huge impact on the real estate industry, it hasn’t diminished the importance of having a Realtor at your side throughout your real estate transaction. In fact, approximately 93 percent of home sales are still conducted with the assistance of a Realtor. With that in mind, we thought we’d give you a little lesson on how to sell your home with a Realtor.
The benefit of working with a Realtor
- An experienced Realtor knows the process because he or she has been through it dozens, if not hundreds of times.
- A Realtor works on your behalf, saving you both time and energy.
- Realtors can help set a fair market price, and should possess top-notch negotiating skills to help you get the best deal.
- Your Realtor should also have a keen understanding of your market and your neighborhood.
- An experienced Realtor should have good contacts throughout the industry, from real estate attorneys to staging companies and estate liquidators.
Realtors work on a commission basis and take on a tremendous amount of responsibility working on your behalf. That being said, be sure to select a Realtor that you are truly comfortable working with. In the end, you want a professional, mutually beneficial relationship.
How do you find this individual? A good place to start is with family and friends who have bought or sold property in the past. How was their experience? Does their Realtor know your community? Has he or she successfully sold multiple properties and hold frequent open house events?
When you’ve found a Realtor with potential, ask a lot of questions.
- What type of services do you offer?
- How do you typically market a property?
- Have you sold homes in my neighborhood?
- How do you determine the sales price?
- How long are your homes typically on the market?
- What is your fee or commission?
The question how to sell your home with a Realtor can be successfully answered by doing your research, asking the right questions, getting straight answers and embarking on a relationship built on trust! If you have questions or we can help you with any of your real estate needs, contact the Olear Team at 716-880-4442 or [email protected].