How Much Does an Executor Get Paid in Ohio?

Ohio Executor Compensation

Serving as an executor or administrator in Ohio can involve substantial work. The fiduciary may need to locate assets, safeguard property, communicate with beneficiaries, address creditor claims, work with the probate court, keep detailed records, sell property, pay expenses, and complete the final distribution of the estate.

Ohio law generally allows executors and administrators to receive compensation for their ordinary services. The amount is typically based on the value of personal property received and accounted for, the income generated by that property, the proceeds from the sale of real estate, and certain other qualifying property.

Executor compensation is not necessarily calculated as a percentage of the entire estate. Different rates apply to different portions of qualifying property, and different rules may apply depending on whether real estate is sold, retained, transferred outside probate, or jointly owned.

How Are Ohio Executor Fees Generally Calculated?

Ohio Revised Code Section 2113.35 establishes a graduated commission schedule for the ordinary services of an executor or administrator. The statutory rates generally apply to qualifying personal property, income from that property, and the gross proceeds from the sale of estate real estate.

The probate court may approve additional compensation for extraordinary services. It may also reduce or deny compensation when the executor or administrator has not faithfully performed the duties of the position.

Ohio’s Statutory Executor-Fee Schedule

The percentages are applied progressively. The entire qualifying amount is not multiplied by the highest applicable rate.

Example: $500,000 Subject to the Tiered Calculation

This is a simplified example. The actual fee depends on which assets are included in the statutory calculation, whether real property was sold, whether the estate received income, whether the will provides a different compensation arrangement, and whether the probate court approves additional or reduced compensation.

An executor should not calculate or pay compensation based only on the estate’s total estimated value. The probate inventory, accountings, asset ownership, date-of-death values, sale proceeds, and applicable court requirements should be reviewed first.

Which Estate Assets Are Included?

The executor-fee calculation may include several different categories of property. The correct treatment depends on ownership, administration, valuation, and the manner in which the property is transferred.

Does the Executor Receive a Percentage of the Entire Estate?

Not necessarily. The gross value of everything a person owned or benefited from at death may be different from the property used to calculate an Ohio executor’s fee.

• Probate personal property may be subject to the graduated rates.
• Sold real estate may be calculated using gross sale proceeds.
• Unsold real estate may qualify for the one-percent rate.
• Joint-and-survivorship property is excluded from the statute’s one-percent non-administration category.
• Other beneficiary-designated or nonprobate property may require a separate statutory analysis.
• A will may provide its own compensation arrangement.
• The probate court may adjust compensation under certain circumstances.

Statements such as “the executor receives four percent of the estate” can therefore be misleading. An experienced Ohio estate administration lawyer can review the estate’s assets, fiduciary responsibilities, and proposed compensation before the final accounting is filed.

Can an Executor Receive Additional Compensation?

Yes. Ohio law permits a probate court to make additional allowances for actual and necessary expenses and for extraordinary services that are not ordinarily required during estate administration.

The court considers whether the requested compensation is just and reasonable. Services that may warrant review for additional compensation can include:

These circumstances do not automatically entitle the executor to more compensation. The fiduciary should keep detailed records describing the work performed, the time involved, the reason it exceeded ordinary administration, and the benefit provided to the estate.

Can a Will Set the Executor’s Compensation?

Yes. A will can state how the executor is to be compensated.

Under Ohio Revised Code Section 2113.36, compensation provided by the will generally serves as full payment in place of the statutory fee arrangement. An executor who wishes to reject the compensation provided by the will must file an instrument with the probate court renouncing that compensation within four months after appointment.

Can the Probate Court Reduce or Deny Executor Fees?

Yes. If the probate court finds, after a hearing, that an executor or administrator has not faithfully discharged the duties of the position, the court may reduce or deny compensation entirely.

Serious executor or fiduciary misconduct may also result in accounting objections, removal proceedings, surcharge claims, repayment orders, or additional litigation.

Can Beneficiaries Object to Executor Fees?

Beneficiaries and other interested parties may raise concerns about an executor’s requested compensation, the estate accounting, or the fiduciary’s conduct.

• Which assets were included in the calculation
• Whether the correct values were used
• Whether statutory rates were applied correctly
• Whether the claimed services were performed
• Whether extraordinary compensation is reasonable
• Whether the executor delayed the estate
• Whether the executor caused a financial loss
• Whether the executor engaged in self-dealing
• Whether compensation provided by the will controls

Disagreement with the amount alone does not establish misconduct. Executors are generally entitled to compensation permitted by Ohio law when they perform their duties faithfully.

Beneficiaries concerned about fiduciary conduct can learn more about contesting or removing an executor in Ohio.

Are Ohio Executor Fees Taxable?

Executor compensation generally has federal income-tax consequences for the person who receives it.

The IRS states that personal representatives must include fees paid to them by an estate in gross income. A person who is not in the trade or business of serving as an executor generally reports the compensation as other income. Someone who is in that trade or business may have to report it as self-employment income.

An inheritance and executor compensation are not necessarily treated the same way for income-tax purposes.

Executor Fees Versus Attorney Fees

Ohio Revised Code Section 2113.36 permits reasonable attorney fees paid in connection with estate administration to be treated as administration expenses. The probate court may fix the amount of those fees upon the appropriate application.

The executor and estate attorney may sometimes perform related tasks, but one fee does not automatically replace the other. The work performed, scope of representation, estate complexity, and applicable court procedures all matter.

When Executor Compensation Becomes a Dispute

A disagreement over executor fees is often part of a larger estate administration problem.

Some disputes can be resolved by reviewing the accounting, correcting a calculation, producing missing records, or clarifying the work performed. Others may require objections, hearings, removal proceedings, recovery claims, or other Ohio estate litigation.

Understanding the Ohio probate process and addressing compensation questions before the estate closes can help executors and beneficiaries avoid preventable disputes.

Questions About Executor Fees or Estate Administration?

Heban, Murphree & Lewandowski, LLC helps Ohio executors, administrators, heirs, and beneficiaries understand fiduciary compensation, probate accountings, estate administration, and disputes involving executor conduct.

Whether you need help calculating a fee, preparing an accounting, responding to a beneficiary objection, evaluating extraordinary compensation, or addressing suspected fiduciary misconduct, our attorneys can review the estate and explain the available options.