If I recall correctly, you get 3% from the estate net value, for your time. Anything else, like gas, keep receipts and deduct from estate.OttawaGardener wrote: ↑ I'm executor for my uncle's estate, and have been tracking my time and mileage because the lawyer had suggested that I claim my personal costs. I didn't do this when I was executor for my aunt. If anyone here has done so, how did you calculate the cost to claim for your mileage and time? This is a complicated estate, with non-resident beneficiaries. I will be preparing the final return, but not the trust return.
Why can't we all just get along?
I'm not a beneficiary. Before he died, my uncle said that I should "take something for my trouble".pickles02 wrote: ↑ Not a direct answer to your question but something to consider: If you charge the estate for your time and expenses, the money you receive is taxable. If your uncle has left money for you in the will, the bequest is not taxable to you. Many people include the executor as a beneficiary of the will to recognize the time and expense of executing a will without creating a tax burden for the executor.
Most duties of an executor can be conducted by mail and by phone. Do you estimate that your costs will be so high as to justify the extra time and tax hit of claiming your expenses from the estate? If you are a beneficiary as well as executor, you might choose to forgo compensation for your time and mileage, especially if charging the estate might create bad feelings within the family ( whose inheritance might be reduced by the cost of your expenses.
It's your choice. As to how to calculate your costs if you decide to claim, you set a fee for the work and keep a paper trail of the mileage and hope that another relative doesn't challenge your bill. This is less likely, of course, if you are not a beneficiary.
Sorry..wrong expression with "living executor", should have read "Power of Attorney" then went into executor when the woman died. It was a friend of hers, and her family didn't want to help out, at all. My mom was NOT a benefactor and I believe the money went elsewhere.OttawaGardener wrote: ↑ Thanks for the quick response. Do you mean your mom was a beneficiary? Not sure what you mean by " living executor".
For the mileage, I was thinking of a "cents/kilometer" calculation, since a gas fill up can't all be allocated to this activity. The estate is about $850,000, so I wouldn't want a high percentage, maybe 1% or .05%?
Why can't we all just get along?
Thanks for that link. I will wait to see how many hours I end up with, and calculate a reasonable fee/hour rather than a % of the estate.kellymisty wrote: ↑ This might be worth your while to read as regards mileage. postal, other communication expenses. As far as reimbursement for your time, I have the impression that is what the executor fee already mentioned is intended to compensate. BTW, the link is to an excellent blog on Canadian estate matters.
I knew it was taxable but not that Cpp applies. However, if it works out to $3,500 or less, cpp won't apply because of the threshold. Maybe this (getting a fee) is all more bother than it's worth.
