How much is an executor entitled to be paid in Alberta?
This answer covers the law of Alberta.
An Alberta executor is entitled to fair and reasonable compensation for their responsibility in administering an estate, and the Surrogate Rules set no percentage or fixed fee. Compensation covers all the services needed to complete the administration, including distribution.
The factors include the estate's gross value, receipts and disbursements, complexity, skill required, time spent, tasks delegated and the number of personal representatives named. Additional compensation is allowed for extra roles such as managing a business, unusual difficulties or instructing on litigation. If the will fixes the compensation, no greater amount can be charged or allowed unless the affected beneficiaries agree to vary it or the court orders it.
Beneficiaries can see how the numbers were reached through accounting. A personal representative must prepare financial statements and, unless the court orders otherwise, account every 2 years. Either a person interested in the estate or the personal representative can apply for formal passing of accounts. How compensation is taxed, for the executor and for the estate, depends on the facts, so confirm it with an accountant or lawyer.
Key takeaways
- The Surrogate Rules allow fair and reasonable compensation for administering an estate but set no percentage or fixed fee.
- Factors include the estate's gross value, complexity, skill required, time spent and the number of personal representatives named.
- If the will fixes the compensation, no greater amount can be charged unless the affected beneficiaries agree to vary it or the court orders it.
- Regular accounting lets beneficiaries see what was taken, and the tax treatment of compensation is worth confirming with an accountant.