Serving as executor of a loved one’s estate is real work. It can mean months of gathering records, dealing with banks and creditors, managing property, filing court documents, and answering questions from family members. It is reasonable to ask whether Nevada law compensates the person who takes it on.
It does. Nevada sets a statutory fee for personal representatives, allows additional compensation for unusually demanding work, and requires the court to approve what is paid. Here is how it works and what executors should consider before taking a fee.
Executor, administrator, personal representative
Nevada uses personal representative as the general term for the person who administers a probate estate. An executor is a personal representative named in a will, and an administrator is one appointed by the court when there is no will or the named executor cannot serve. The compensation rules described here apply to both.
The statutory fee schedule
Under NRS 150.020, a personal representative’s ordinary compensation is a percentage of the value of the probate estate, less liens and encumbrances:
- 4% of the first $15,000
- 3% of the next $85,000
- 2% of everything above $100,000
For example, for a probate estate with a net value of $400,000, the calculation is $600 on the first $15,000, $2,550 on the next $85,000, and $6,000 on the remaining $300,000, for a total statutory fee of $9,150.
Only the probate estate counts
The fee is based on the probate estate, not everything the decedent owned. Assets that pass outside probate are generally not part of the calculation, including:
- Property held in a funded living trust
- Accounts with a payable-on-death or transfer-on-death beneficiary
- Life insurance and retirement accounts with named beneficiaries
- Property held in joint tenancy with right of survivorship
The calculation is also based on net value after liens. A house worth $500,000 with a $350,000 mortgage contributes $150,000, not $500,000. As a result, an estate that looks large on paper can produce a modest executor fee if most of it passes outside probate or is heavily encumbered.
Extraordinary compensation
Some estates demand far more than routine administration. NRS 150.030 allows the court to award additional compensation it considers just and reasonable for extraordinary services, such as:
- Managing, selling, or mortgaging real or personal property
- Handling contested or litigated claims against the estate
- Adjusting and paying extensive or complicated estate taxes
- Litigation concerning estate property
- Running the decedent’s business under a court order
Extraordinary compensation is not automatic. The personal representative must show the court what was done and why it went beyond ordinary administration. Keeping a contemporaneous record of time and tasks makes that showing far easier.
The court must approve the fee
A personal representative cannot simply pay themselves from estate funds. Compensation is requested from the court, typically as part of the petition to approve the final account and distribute the estate, and interested persons receive notice and an opportunity to object.
Taking a fee without court approval, or paying it early without authority, can expose a personal representative to claims for breach of fiduciary duty. Our article on Nevada’s statute of limitations for breach of fiduciary duty explains how those claims work.
Separately from compensation, a personal representative is generally entitled to reimbursement of reasonable expenses paid on behalf of the estate, such as filing fees, publication costs, appraisals, and property upkeep. Keep receipts for everything.
Should a family executor take the fee?
Many family members serving as personal representative choose to waive compensation, especially when they are also a beneficiary. A few factors are worth weighing:
- Taxes. Executor fees are generally taxable income to the person who receives them, while an inheritance generally is not. When the executor is also a beneficiary, taking a fee can simply convert part of an inheritance into taxable income. A tax advisor can run the numbers.
- Fairness among siblings. When one child does all the work and the others do none, a fee can be a fair way to recognize that effort. When everyone shares equally anyway, a fee can create friction without much benefit.
- The will. Some wills address executor compensation directly. If the will includes a provision on compensation, ask the estate’s attorney how it applies to your situation.
Whatever the choice, it is best made early and communicated clearly to the other heirs.
Executor fees versus attorney fees
Executor compensation is separate from the fees paid to the estate’s attorney. Attorney compensation is governed by NRS 150.060, must be reasonable, and must also be approved by the court. Our article on how much probate costs in Las Vegas and who pays breaks down the full picture of estate expenses.
What about trustees?
When assets are held in a trust, there is no probate and no statutory executor fee. Trustee compensation is governed by the trust document and Nevada trust law, and it is handled through trust administration rather than the probate court. Our trust administration practice advises trustees on compensation and their other duties.
Frequently asked questions
When does the executor get paid?
Usually at the end of the case, when the court approves the final account and orders distribution. Partial payments before then require court authority.
Can an executor’s fee be reduced or denied?
Yes. The court can reduce or deny compensation, particularly when a personal representative has mismanaged the estate, caused unnecessary delay, or breached fiduciary duties.
Do co-executors each get the full fee?
Not automatically. When more than one person serves, how compensation is divided is a question for the court, and it is wise to address it early with counsel.
Is there an executor fee if the estate uses a small estate affidavit?
No personal representative is appointed in an affidavit or set aside, so the statutory personal representative fee does not apply in the same way. Our guide to using a small estate affidavit in Nevada explains that process.
Guidance for personal representatives
Serving as personal representative carries real responsibility, and compensation is only one of many decisions where an early conversation can prevent problems later.
Solomon Dwiggins Freer & Steadman, LTD. advises personal representatives throughout Nevada on their duties, their compensation, and the steps needed to close an estate properly. Learn more about our probate and estate administration practice, or call our Las Vegas office at (702) 853-5483.