Executor's Fees

According to what are the executor's fees set?

Usually up to 3% of the value of the estate, but exceptionally up to 4%. The court is entitled to set the executor's fees according to rules set by the Minister of Justice in regulations. In the Inheritance Regulations of 1998 a maximum limit for the executor's fees is set, of 3% of the value of the estate, taking into consideration the value of all the property in it, its type, and the type and extent of work carried out .

If there were exceptions or special effort was needed ,the court can increase the fee the executor of the estate will receive, so that the maximum he/she shall receive is 4% of the value of the estate.

If the testator set instructions regarding the executor's fees in his will, is the court bound by these?

As long as they do not set more than the maximum allowed by law. If the testator set the fees above what the law allows, the court will only set 4%. If the testator set fees below what are set by law, the court can increase them , in accordance with what is permitted by law.

Can the heirs set the fees the executor of the estate is to receive?

No! They cannot even agree on it in advance. The court has exclusive discretion on the matter of the executor's fees.

How is the estate valued?

According to the value of all the property that belonging to the estate when the deceased died, or which were added later.

How is the value of the estate to be calculated for the purposes of setting the executor's fees?

Monetary property is valued at when the deceased died plus additions linked to the consumer price index . Other property is valued when it is realized or when it is distributed to the heirs without it being realized, whatever the case, plus additions linked to rises in the consumer price index.

What is included in the executor's fees?

Payment for all routine acts involved in running the estate, including applications prepared and submitted to court for his appointment, instructions re estate, his fees and for confirmation that everything concerning the estate that needed doing had been done.

How much will the executor of the estate receive for filing an Inheritance or Probate Order?

1.5% of the value of the estate .

What happens if someone appointed in the will as executor of the estate was approached by the beneficiaries and asked to 'get on with the job' and did so before getting officially appointed by court?

That person, even if appointed officially as executor of the estate later by court, will not get paid for the work he or she understood before he/she was appointed by court order.

Are there any restrictions on what fees a person making a will can instruct that the executor of the estate he appoints may receive?

Yes – only instructions granting the executor of an estate legal fees amounting to up to 4% of the estate will be valid, if put to the test. Tel Aviv District Court reviewed the subject of the testator's freedom in this matter in April 2007 and held that a deceased's wishes in this matter will only be respected if they fall within the ceiling set by law. Instructions exceeding this percentage will not be valid.

When will the executor be entitled to get his fees?

As a rule, after the General Guardian has reported back to court and confirmed that there were no faults in the executor's report.

Who is responsible for paying the executor's fees?

As a rule the estate, unless the court decides otherwise.

How are the fees paid when there is more than one executor?

The total fee will be equivalent to that of one executor's fee – and will be divided between them.

What must the executor do to get paid?

He must make an application to court for payment of his views, including in it

the value of the estate, the work he did, the sum he requests, and how he reached it.

Must the court pay what the executor requests as his fee?

No! The court has discretion to pay up as requested, or to ask the executor for more details as to the work done.

Is an heir who acts as executor also entitled to a fee for his services?

Yes! The fee he would get for his services as executor would , of course, be

in addition to what he is due to inherit as an heir.

Is it ever possible for an executor of the estate to get an advance on his fees before he has finished the job?

Exceptionally. The court has discretion to grant him an advance, and will do so in circumstances when the management of the estate has dragged out over a long period of time, or where there has been an exceptional workload .

Are there any limits on the downpayment an executor can get?

Yes, not more than 2% of the value of the estate.