When someone passes away in Queensland, the executor of their will is responsible for managing the estate, a role that can involve significant time, responsibility, and legal risk. In some cases, executors are entitled to be paid for their work through what’s known as executor’s commission. Understanding how executor’s commission works in Queensland is essential for both executors and beneficiaries. At Bennett Carroll Solicitors, we regularly advise clients across Brisbane, Stafford, Upper Mount Gravatt, Kawana, Mermaid Beach and Ipswich on estate administration, probate, and executor remuneration. This article explains what executor’s commission is, how it’s approved in Queensland, what factors the Court considers, and when to seek legal advice to protect your interests.
What Is Executor’s Commission?
Executors have a right to apply to the Court for executor’s commission, which is a payment made to executors for the pains and trouble of administering an estate. Executor’s commission, if paid, is paid from the residue of the estate. This means that if executor’s commission is paid, it will reduce the amount that the residuary beneficiaries shall receive from an estate.
How Commission Is Approved in Queensland
In some circumstances, executors reach an agreement with the residuary beneficiaries about the payment of executor’s commission and document that agreement by a deed instead of making an application to the Court. If, however, not all residuary beneficiaries have legal capacity (i.e. over 18 years of age and not suffering from any condition which deprives them of legal capacity), then the executors, if they want to be paid commission, will have to make an application to the Court.
Not all executors make a claim for executor’s commission. It is a personal choice the executors make before they distribute an estate.
Typical Executor Commission Amounts in QLD
There is no fixed percentage or statutory amount in Queensland. However, as a general guide:
- Smaller or straightforward estates may attract a modest fixed amount.
- Larger or complex estates may involve a percentage of the estate value.
- Trustee companies and the Public Trustee publish their own fee schedules, which can be used as benchmarks.
The Court decides what’s fair based on the circumstances. It will also consider whether the executor performed most of the work themselves or engaged professional help.
Factors the Court Will Consider
When deciding how much commission is appropriate, the Court may look at:
- The size and value of the estate.
- The complexity of the assets and issues involved.
- The time and responsibility involved in the administration.
- Whether the executor engaged professional advisers such as solicitors or accountants.
- Any personal benefit the executor has already received.
Tax and Cost Considerations
- Executor’s commission is generally considered taxable income for the executor, so it’s important to seek advice from an accountant.
- There may also be administration costs, such as probate fees, legal costs, or advertising costs, which reduce the overall estate before distribution.
- Executors should keep clear records of their time and any expenses spent in their role as executor.
Practical Steps for Executors and Beneficiaries
- Review the will carefully to check if it includes any direction about executor remuneration.
- Keep detailed time records and receipts for all estate work and costs.
- Where possible, reach agreement with beneficiaries early to avoid disputes.
- Consider professional legal assistance if the estate is complex or if consent cannot be obtained.
- Seek advice on whether a Court application is required.
When to Apply to the Supreme Court
If beneficiaries won’t agree to a commission amount, or if the amount is uncertain, the executor can apply to the Supreme Court to have it determined. This is common in larger or more complicated estates.
Our team at Bennett Carroll Solicitors can guide you through the process, prepare the application, and represent your interests.
Get in touch: Call us on 1300 334 566 or contact us online here.
Frequently Asked Questions
Can an executor always be paid a commission in Queensland?
No. There’s no automatic right to payment. Executors commission must either be agreed by the beneficiaries or approved by the Supreme Court.
Is there a standard percentage?
No. It varies depending on the size and complexity of the estate. Benchmarks are often drawn from trustee company schedules.
What’s the difference between commission and expenses?
Commission compensates an executor for their work and responsibility. Expenses are reimbursements for actual costs incurred.
How Bennett Carroll Solicitors Can Help
If you’re acting as an executor or are a beneficiary dealing with an executor commission claim in Brisbane, Stafford, Upper Mount Gravatt, Kawana, Mermaid Beach or Ipswich or anywhere in Queensland we can help you navigate the process.
Our estate lawyers regularly advise on:
- Executor commission and remuneration
- Probate and estate administration
- Beneficiary agreements and disputes
- Applications to the Supreme Court
Get in touch: Call us on 1300 334 566 or contact us online here. We can assist you in person or remotely across Queensland.
