Executor Compensation and Fee Calculator (OR)

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If the will does not specify how executor compensation should be calculated, OR estates must follow state compensation rules.

Click to scroll to OR Fee Calculator.

How Much Should an Executor be Paid in OR?

In Oregon, the estate executor is known as a "personal representative".

If the will does not specify an executor fee (or you have renounced your claim to that fee), then Oregon law determines executor fees as a percentage of the gross estate subject to the jurisdiction of the court:

7.0% on the first $1K
4.0% on the next $9K
3.0% on the next $40K
2.0% on anything more

So, for example, an Oregon $40K estate would yield $1,330 in executor fees, and a $600K estate would generate $12,630 in executor fees.

This calculation can be a little complicated, though, since OR statute specifies that asset valuation should be the valuation at time of death, or at distribution, whichever is higher. Any gains are included; losses are not. And any income generated by the estate is also included in these calculations.

While assets with named beneficiaries, such as 401Ks or IRAs, are not subject to the jurisdiction of the court, and are thus NOT included in the above calculations, in Oregon the executor can also charge 1% of other assets, excluding life insurance proceeds, not subject to the jurisdiction of the court but reportable for Oregon estate tax or federal estate tax purposes (such as IRAs and 401Ks).

Finally, the court can also allow additional compensation for "extraordinary" services. Common interpretations of "extraordinary" include overseeing the sale or lease of real estate, running a business, conducting litigation, preparing tax returns yourself, handling tax audits, and so on.

Note that even if a will specifies the compensation for the executor, the executor may renounce the relevant provision before being assigned executor, and be entitled to compensation as per above.

See Oregon Revised Statutes § 116.173.

OR Compensation Calculator

EstateExec provides the following executor compensation estimator for OR estates, but please keep in mind that circumstances may vary, and that there may be special situations addressed by local custom or law. By using this estimator, you acknowledge that EstateExec provides any results as informational input only, not as legal advice, and cannot be held responsible for any inaccuracies for, or misunderstandings about, any given estate.

You can use this calculator now, but if you use EstateExec to help you track the settlement process, it will automatically perform the sometimes complex calculations to provide inputs for the fields below (you can create an estate for free).

See also Compensation for general remarks on executor compensation.

Executor Compensation Considerations

Timing: Generally, any executor compensation is paid during the final stages of estate distribution, as one of the last things the executor does. Be careful in situations in which there is not enough to pay yourself and all other outstanding debts, as this may expose you to legal issues. However, in most states, executor compensation has precedence over almost all other debts (for example, in NY, only funeral expenses have a higher precedence).

Communication: You may wish to discuss your compensation with the other heirs early during the process, so they don't end up surprised and unhappy when they notice their shares are somewhat less than expected. You may also want to leave the door open to modify your planned compensation as the process unfolds and you determine how much or how little work will actually be required on your part.

Optional: Keep in mind that collecting executor fees is optional. Even if the will specifies compensation, or if state laws support specific fees, the executor can choose to forego that compensation, and many do. That being said, serving as an executor is A LOT of work, and there's a reason that state laws support such compensation.

Tax Optimization: One reason an executor might choose to forego explicit compensation is that executor compensation is taxable, while inheritances are generally not taxable. Consequently, if the entire estate (or a large portion of it) is going to be inherited by the executor, you may end up with more after-tax value if you forego executor compensation.

Trusts: Note that trustee compensation for managing a trust is handled differently than that of executor compensation for settling an estate (see Trustee Compensation).

Expense Reimbursement: In addition to compensation for his or her services, an executor is also entitled to reimbursement from estate proceeds for legitimate and reasonable estate administration costs, such as death certificate copies, notarization of documents, the EstateExec licensing fee, and even travel costs strictly associated with managing the estate. Once you have established an estate banking account, you can often pay for these costs directly from that account, so that no reimbursement is necessary, but you should keep good records in case you later have to justify your expenditures to the IRS or to estate heirs. Executor expenses can be reimbursed when desired, although certain probate proceedings may require prior approval. While executor expenses are generally not considered when calculating executor compensation (i.e., executor fees), if the executor incurs substantial costs paying for services that would normally be directly handled by an executor, a probate judge may sometimes require that the default executor fee be reduced accordingly.