Serving as an executor is real work, and New York law recognizes that with statutory commissions. But the calculation is not a flat percentage, and both executors and beneficiaries are often surprised by how the numbers actually break down under the sliding scale set out in SCPA 2307.
The Basic Structure of the Sliding Scale
SCPA 2307 sets commission rates that decrease as the value of the estate increases. Executors receive a percentage of the first portion of the estate's value, a smaller percentage of the next portion, and progressively smaller percentages as the estate grows larger. This tiered approach means larger estates do not simply multiply the commission proportionally; the effective rate declines as the estate size increases. The statute also distinguishes between receiving assets and paying out assets, with commissions calculated on both sides of the fiduciary's work.
What Counts Toward the Commission Base
Not every asset in an estate is included when calculating commissions. Generally, assets that pass directly to beneficiaries outside the probate process, such as jointly held property, accounts with named beneficiaries, or assets held in trust, are excluded from the commission calculation because the executor never actually administers them. This distinction matters greatly in estates where a significant portion of wealth passes outside probate, since it can substantially reduce the commission base even though the estate's total value on paper looks much larger.
- Commissions are calculated on a decreasing percentage basis as estate value increases
- Separate commission rates apply to receiving versus paying out estate assets
- Non-probate assets generally do not count toward the commission calculation
- Whether co-executors share one commission or each take a full one is set by statute based on estate size (SCPA 2307(5)), with a two-commission cap for most modern wills under SCPA 2313 unless the will provides otherwise
- Commissions can be waived, adjusted by will provisions, or contested if excessive
When Commissions Become Disputed
Beneficiaries sometimes challenge the commissions an executor claims, particularly when they believe the executor mismanaged the estate, delayed administration unnecessarily, or improperly included assets in the calculation. These disputes typically surface during a formal accounting, when the executor's claimed commission appears alongside a full breakdown of estate assets and expenses. Anyone reviewing an accounting who has questions about how commissions were calculated should consult with counsel before approving the account, since signing off can limit later challenges. Our attorneys assisting with representation of trustees and executors regularly help fiduciaries calculate and document commissions properly to avoid these disputes.
Getting the Calculation Right From the Start
Because commission disputes often become part of larger accounting objections, executors are well served by keeping meticulous records from day one, including which assets passed through probate and which did not. Beneficiaries who suspect an executor has overstated a commission claim can raise the issue as part of formal trusts and estates litigation during the accounting process.
Whether you are an executor trying to calculate a fair commission or a beneficiary questioning one, getting the numbers right matters. Call Schwartsman Law Group at +1 212 518 3868 or schedule a free consultation to review your estate's specific circumstances.
