Executor Commission in Queensland: How Much Can You Get Paid?

Serving as the executor of a deceased estate in Queensland can be a demanding role—often involving considerable time, paperwork, and personal responsibility. In recognition of these efforts, executor commission allows the executor to receive a payment from the estate, subject to certain legal requirements. But how much can an executor actually get paid, and what steps are required to secure that commission? This article examines the concept of executor commission under Queensland law, detailing eligibility, calculation methods, and best practices for executors seeking fair compensation.

Why Executors Sometimes Receive Commission

When administering an estate, executors may spend months (or even years) performing tasks such as:

• Collecting assets
• Paying debts and taxes
• Maintaining or selling property
• Communicating with beneficiaries and lawyers

Given these responsibilities, the law recognises that executors can receive compensation (commission) for their time and effort¹.

“Executor duties can be as complex as running a small business—organising finances, paying invoices, distributing shares—so a fair commission is often justified.“
— Estate Administration Specialist, QEL

Legal Framework in Queensland

Executor commission is addressed under Queensland’s Succession Act 1981² and relevant case law. Generally:

• Commission must be authorised—either by the will’s explicit clause or by the Supreme Court’s approval (if the will is silent or unclear).
• The courts or beneficiaries can scrutinise the executor’s actions to ensure the requested commission is fair and proportionate.

(Note: Commission differs from “reimbursement of expenses,” which covers out-of-pocket costs like court filing fees or postage, and does not require special court approval.)

Eligibility for Executor Commission

When Is Commission Justified?

Not every estate justifies the executor taking commission. For smaller or simpler estates, an executor (often a close family member) may waive payment to preserve estate funds. However, commission is more common if:

• The will explicitly allows a certain percentage or formula-based payment.
• The estate is large or complex, requiring significant labour.
• Beneficiaries agree the executor should be compensated, or a court deems it appropriate.

If the will specifically states the executor serves without any commission, that stipulation generally prevails unless the court decides to override it under exceptional circumstances.

Court Approval vs. Will Provisions

If the will includes a clause like, “My executor may receive 2% of the gross estate as commission,” the executor can typically rely on that—assuming it’s not excessive. If the will is silent or the proposed commission is contested, the executor might seek court approval via an application to the Supreme Court of Queensland³.

Calculating Executor Commission

Executor commission is often calculated as either:

1. A percentage of the estate’s gross value, net value, or specific categories of assets.
2. A lump sum figure if the estate is straightforward.
3. An hourly rate multiplied by total hours spent, although this is less common without prior agreement.

Percentage Approaches

A typical range mentioned in older precedents might run from 1–5% of estate value, depending on complexity⁴. However, the exact figure is not fixed by law; the court or beneficiaries assess what’s fair. An estate with many assets requiring sale, or one involving litigation, might justify a higher rate.

(Practical Example): If an executor invests 200 hours managing a $2 million estate, a 2% commission yields $40,000. The question is whether that’s proportionate to the workload and beneficial for the estate.

Methods the Court Uses

When the court reviews a commission application, it may consider factors like:

• Size and Complexity of the estate
• Skill and Efficiency shown by the executor
• Time and Effort required
• Degree of Risk or personal liability the executor faced
• Results obtained, e.g., asset maximisation or cost savings

Some executors keep detailed time logs or notes of their efforts to bolster their case for a requested sum. If beneficiaries or co-executors disagree, the court may hold a brief hearing to determine a final figure.

Table: Executor Commission Approaches

(Note: The best approach often depends on the estate’s nature, the will’s provisions, and whether all parties consent to a particular method.)

Practical Example Scenarios

1. Small Simple Estate: Mary passes away leaving $200,000 in savings and a single property worth $300,000. The executor invests 50 hours contacting banks, listing the home for sale, and distributing proceeds. Beneficiaries might easily accept a modest fixed fee of $5,000 or 1% commission ($5,000) if the tasks are straightforward.
2. Large Complex Estate: Daniel’s estate holds multiple properties, an operating business, and overseas assets. The executor invests hundreds of hours dealing with accountants, lawyers, and property agents. A 2% commission on a $5 million estate yields $100,000, which might be justified if the workload is high and all beneficiaries (or the court) agree.

6. Obtaining Agreement or Court Approval

Beneficiary Consent

If all beneficiaries are adults and consent to the executor’s proposed commission, a formal court application may not be necessary. The beneficiaries can sign an agreement stating they approve a certain sum or percentage, provided:

• No minors or persons under legal disability are involved (who can’t consent).
• The will doesn’t forbid commission.

Tip: Beneficiaries typically prefer clarity early on. Executors who communicate approximate hours or responsibilities—and propose a commission—can avoid surprise claims later.

Court Application

If beneficiaries disagree on the commission amount or the will is silent, the executor can apply to the Supreme Court of Queensland for approval³. This may involve:

1. Filing an affidavit showing time spent, estate complexity, and tasks performed.
2. Possibly a hearing if beneficiaries object.
3. A court order determining the final figure or percentage.

“If everyone is on board, you skip court. But if friction arises, the court ensures fairness, not overreaching by the executor.” — Estate Litigation Lawyer, QEL

Potential Pitfalls and Disputes

1. Excessive Commission Demands: If an executor claims a high percentage on a large estate with minimal work, beneficiaries can challenge.
2. Conflict of Interest: Where the executor is also a major beneficiary, taking commission might anger other beneficiaries or require extra justification.
3. Failure to Keep Records: Executors lacking thorough documentation of hours or complexities weaken their case for commission.
4. Delayed Payment: Executors must typically finalize debts, taxes, and beneficiary distributions before paying themselves—avoid distributing commission prematurely to prevent personal liability.

Frequently Asked Questions (FAQ)

Q1: Can an executor just pay themselves from the estate without telling anyone?
A: No. Executors must be transparent and either follow the will’s clear instructions, secure all beneficiaries’ consent, or seek court approval. Quietly taking funds is a breach of fiduciary duty, risking removal or legal action.

Q2: Is executor commission taxable income?
A: Yes, typically the executor must declare commission as personal income⁵. Reimbursed expenses, however, are not income since they’re simply repaying costs.

Q3: What if the will specifically states the executor should serve “without remuneration”?
A: That usually precludes claiming commission, unless the court finds unusual circumstances. The testator’s intention is strongly respected.

Q4: I’m both a beneficiary and an executor. Does that complicate commission claims?
A: Potentially, yes. You must show the commission is fair above and beyond your beneficiary entitlement, and that it won’t disadvantage other beneficiaries.

Conclusion

Executor commission recognises the time, effort, and risk an executor shoulders while administering a deceased estate in Queensland. However, it’s not automatic: the will might expressly permit it, or beneficiaries (or the Supreme Court) must approve the sum. By communicating openly with heirs, maintaining records of tasks, and following guidelines in the Succession Act, an executor can secure a fair reward while preserving transparency and trust.

Key Takeaways:

1. Executor Commission: Payment for an executor’s work in managing an estate.
2. Justification: Must be authorised by will or approved by beneficiaries or the court.
3. Calculation: Often a percentage of estate value; sometimes a lump sum or an hourly rate.
4. Record-Keeping: Detailed logs of tasks/time help justify commission claims.
5. Beneficiary Agreement: If all adult beneficiaries consent, court approval may be unnecessary—otherwise, a court can set the final rate.

By understanding executor commission’s legal footing and adopting best practices—like open communication, strong documentation, and abiding by the will—executors can receive compensation that reflects their labour, without sacrificing goodwill or facing accusations of overreach.

Sources / Citations

1. Succession Act 1981 (Qld)
2. Queensland Government – What if there is no will? (Intestacy Provisions)
3. Supreme Court of Queensland – Executor Commission Applications
4. Historical Precedents in Executor Commission Cases (Local case law references)
5. Australian Taxation Office (ATO) – Executor Income/Taxation Guidance