Estate Costs

 

Managing an estate brings with it different sources of costs.

Income tax

 

This will be payable on income earned by the estate until all the assets have been distributed.

Legal fees

 

Lawyers’ costs for assisting the executor are set by a scale and will depend on the size of the estate. Your lawyer will advise you of this scale.

Executor’s commission

 

An executor is entitled to claim all costs and expenses incurred in administering the estate. The executor can also apply to the Supreme Court for an executor’s commission of up to 5% of the value of the estate if the administration is particularly complex and time consuming.

Trustee companies

 

Trustee companies are entitled to charge a commission of up to 5.5% of the total value of the estate for administering the estate. They can charge up to 6.6% on all income received by the estate.

Some small estates may be administered by the Small Estates Office for a small fee. Small estates do not exceed $25,000 where the beneficiaries are not the spouse, children or sole surviving parent or $50,000 where they are.