Executor Fees in Virginia: Rates, Schedule, and Waivers

Executor fees in Virginia usually start at 5% of the first $400,000 of probate assets and step down from there for larger estates. The state doesn’t fix a rate by statute. Virginia Code § 64.2-1208 entitles an executor to “reasonable compensation,” and the Commissioner of Accounts in each circuit applies a widely used percentage guideline to decide what reasonable means for a given estate.1Virginia Code Commission. Virginia Code 64.2-1208 – Expenses and Commissions Allowed Fiduciaries

The Percentage Schedule Commissioners Use

The compensation guideline used by Virginia’s Commissioners of Accounts is tiered against the total inventory value of the decedent’s probate assets:

  • First $400,000: 5%
  • Next $300,000: 4%
  • Next $300,000: 3%
  • Over $1,000,000: 2%
  • Over $10,000,000: by agreement with the Commissioner, with prior consultation required

Run the numbers on a $700,000 estate and the fee comes to roughly $32,000: $20,000 on the first $400,000 plus $12,000 on the next $300,000.2COAFFX. Fiduciary’s Compensation Schedule

The percentages are guidelines rather than statutory mandates. The statute itself just directs the Commissioner to allow “reasonable compensation in the form of a commission on receipts or otherwise.”1Virginia Code Commission. Virginia Code 64.2-1208 – Expenses and Commissions Allowed Fiduciaries Nearly every Commissioner applies the schedule, so it functions as the default.

What Counts as a Probate Asset

The percentage runs against the probate estate only, not everything the decedent owned. Probate assets generally include individually held bank accounts, stocks, bonds, and real estate that the executor sells or manages during administration.

Assets that bypass probate stay out of the calculation. Jointly owned property with rights of survivorship, life insurance with a named beneficiary, retirement accounts with designated beneficiaries, and payable-on-death accounts transfer directly to the survivor or beneficiary. If the decedent held $2 million total but only $600,000 flowed through probate, the fee is calculated on $600,000.

Income Commission on Top of the Principal Fee

Beyond the fee on principal, executors earn 5% of the estate’s income receipts during each accounting period. That covers rent collected on estate property, dividends, and interest. Capital gains are not part of the income calculation.2COAFFX. Fiduciary’s Compensation Schedule

When the Will Sets a Different Fee

A will can specify a different arrangement: a flat dollar amount, a different percentage, an hourly rate, or a direction to serve without pay. Virginia courts generally honor these provisions unless the amount is so excessive that it would be unreasonable.

If the will sets a fee too low for the work involved, the executor can petition the Commissioner to approve additional compensation. This comes up when a will drafted decades ago attached a modest flat fee that no longer matches the estate’s complexity. Beneficiaries, on the other side, can challenge a provision they view as excessive during the accounting review.

Factors That Push the Fee Up or Down

The schedule is a starting point, not a ceiling or a floor. Commissioners have discretion to adjust up when administration turns out to be genuinely demanding. Common reasons include:

  • Complex assets like business interests requiring valuation or management, real property needing maintenance or sale, and unusual holdings such as intellectual property or collectibles
  • Litigation, whether defending against creditor claims, contested wills, or beneficiary disputes
  • Tax complications, including federal estate tax returns, multi-year income tax filings, or resolving prior tax liabilities
  • Extended administration when an estate stays open for years

The adjustment can go the other way too. A straightforward estate with liquid assets and cooperative beneficiaries may not justify the full guideline amount, especially if the executor hired professionals to do most of the work. When an executor pays an attorney or accountant to perform tasks the executor could have handled personally, the Commissioner may deduct those professional fees from the executor’s commission.2COAFFX. Fiduciary’s Compensation Schedule Fees paid for genuinely specialized work like tax preparation or litigation are treated as separate estate expenses and don’t reduce the commission.

Co-Executors Split One Fee

When two or more people serve together, the guideline produces one total fee that gets divided among them, not a full fee for each. The default split is equal, but co-executors can agree on a different division if one is carrying the bulk of the work.2COAFFX. Fiduciary’s Compensation Schedule If they can’t agree, the Commissioner resolves the split based on each person’s actual contribution.

When Executors Can Take Payment

You don’t have to wait until the estate closes. Virginia’s guidelines allow the executor to draw a fee at reasonable intervals, with the timing reflecting “the expected life of the estate, the work already done, and the work remaining to be done.”2COAFFX. Fiduciary’s Compensation Schedule Someone running a two-year administration can reasonably take partial payment along the way.

The first accounting is due within sixteen months of qualifying with the court, and that’s when the Commissioner formally reviews the compensation claimed. Taking a fee before the accounting is permitted, but the amount stays subject to later review. If the Commissioner determines the executor took too much, the excess has to be returned to the estate. Beneficiaries and other interested parties get 15 days after the Commissioner’s report is filed to lodge exceptions, including exceptions to the fee amount.3Virginia Code Commission. Virginia Code 64.2-1211 – Where Filed; Notice to Certain Parties

Expense Reimbursement Is Separate

Reimbursement for out-of-pocket costs comes on top of the fee. Virginia Code § 64.2-1208 directs the Commissioner to allow “any reasonable expenses” the executor incurs.1Virginia Code Commission. Virginia Code 64.2-1208 – Expenses and Commissions Allowed Fiduciaries Common reimbursable items include court filing fees, appraisals, postage, certified copies, and attorney or accountant fees for services beyond routine executor duties.

Estate-related travel is also reimbursable. Executors using a personal vehicle can claim mileage at the IRS business standard rate, which is 72.5 cents per mile for 2026.4IRS. 2026 Standard Mileage Rates Keep receipts and detailed records for everything; undocumented costs tend to be disallowed at the accounting.

Executor Fees Are Taxable Income

The IRS requires every personal representative to include compensation received from an estate in gross income.5Internal Revenue Service. Publication 525 – Taxable and Nontaxable Income For most people, who serve only once for a parent or spouse, the fee goes on Schedule 1 (Form 1040), line 8z, as other income. You owe regular income tax on it but not self-employment tax.6Internal Revenue Service. Survivors, Executors, and Administrators

Professional fiduciaries and anyone in the trade or business of serving as an executor report fees on Schedule C as self-employment income, owing both income and self-employment tax.6Internal Revenue Service. Survivors, Executors, and Administrators If an estate pays $600 or more in fees during a tax year, expect a Form 1099-MISC.5Internal Revenue Service. Publication 525 – Taxable and Nontaxable Income

Why Some Executors Waive the Fee

An executor who is also the primary beneficiary can come out ahead by waiving compensation entirely. Executor fees are taxable; inherited assets generally are not. Taking a $30,000 fee when you’d already inherit the bulk of the estate just converts $30,000 of tax-free inheritance into taxable income.

The IRS recognizes this. Under Revenue Ruling 66-167, executor fees are not included in gross income if the executor waives them within a reasonable time after beginning to serve and acts consistently with an intent to serve gratuitously.7Internal Revenue Service. Private Letter Ruling PLR-141551-09 The waiver doesn’t have to happen before you start; it just needs to be prompt and not follow conduct treating the fee as already earned.

The math flips when there are multiple beneficiaries. An executor who is one of four equal beneficiaries recovers only a quarter of anything waived, so taking the fee often makes sense as compensation for work that benefits everyone.

Losing the Fee for Misconduct

Virginia courts can reduce or deny compensation when an executor’s conduct harms the estate. Mixing estate funds with personal accounts, borrowing from the estate, making reckless investments, missing tax deadlines, and simply failing to move estate business forward all draw scrutiny. In serious cases, the court can remove the executor and order them to compensate the estate for losses their conduct caused. Even negligence or chronic delay short of outright wrongdoing can support a compensation reduction, and the Commissioner sees these patterns clearly during accounting review.