Wills: can Executors charge for their services?
Being named as an Executor of a Will can be a daunting task. It’s a job that can require significant time commitments, and so the question is, can you charge for undertaking such a role.
Lay Executors
A ‘lay executor’ is someone not acting in a professional capacity when named as an executor. The role of a lay executor is an unpaid position, and the only financial reimbursement is that of reasonable expenses.
Examples of reasonable expenses include, but are not limited to, fees for death certificates, probate court fees, and house clearance fees. If an executor decides to save money by doing a task themselves, such as clearing the house for example, the money saved does not belong to the executor, and would simply remain in the estate.
The term ‘reasonable’ is often left to the executors and beneficiaries’ discretion. If a beneficiary is concerned that an executor is claiming above and beyond what would be expected, they can look to dispute this in order to ensure the estate funds are being managed correctly.
A lay executor can also be named as a beneficiary in the Will. If the loved one who named them as an executor includes a gift in their Will to compensate for the time and effort, this is a recognised way in which an executor can be rewarded for their efforts. This is not compulsory, however, and remains entirely at the discretion of the testator.
Professional Executors
A professional executor, such a solicitor, can charge for their services as an executor. A professional executor usually offers a higher degree of both knowledge and experience, and this is why the services are chargeable.
If beneficiaries are not in agreement with the fees charged, they may request the professional to step down from their role as an executor, and look into alternative ways of managing and administrating the estate.
Professional executors can also reclaim reasonable expenses, should these be incurred.
Charging Clause
A Will may include a charging clause which allows the executors to charge for their time spent undertaking their role. A charging clause is usually only included for professional executors; however, it is possible for provisions to be included for lay executors.
In terms of a professional executor, it is not a requirement that a charging clause be included in the Will, but if a testator wishes to specifically detail it, they can.
As a general rule, it is very rare that a lay executor can charge for their time, and any financial reimbursement should be limited to reasonable expenses only.
Beneficiaries of an estate are able to challenge the fees and also the conduct of the executors. Both professional executor and lay executor would therefore need to ensure that they act in accordance with their duties and in the best interests of the estate they are appointed to administer. It is good practice for the executors to retain evidence of their expenses in the event the beneficiaries raise issue with regards to the same. To avoid a potential dispute arising in the future and where executors are in doubt, they should invite the beneficiaries to agree their fees in advance.
If you are looking for advice on any potential claims in respect of an executor, or simply wish to seek assistance on the initial steps, please contact our Dispute Resolution Team here.
If you are looking for advice on the appointment of an executor, or simply with to seek assistance with your Will, please contact our Probate, Wills and Trusts Team here.
View all
