Welcome to our quick dive into one of the most common misconceptions about Texas probate administration. Here is myth #3: the idea that executors can take whatever they want as payment. Let's clear the air!
First off, being an executor is a big responsibility. You're essentially stepping into the shoes of someone who's passed away to settle their affairs. Now, because it's a job with duties, yes, executors do get compensated. But the idea they can just dip into the estate and decide their own pay? Far from true.
In Texas, executor compensation isn't a free-for-all. It's governed by the probate code and, often, the will itself. Typically, the law provides for a reasonable compensation—think about 5% of the estate's value. But here's the kicker: it's not just 5% of everything. It's mainly about the money that's actually collected and paid out, not on assets like the family home.
And what if the will says something different? Well, the will calls the shots. If it sets a specific amount or perhaps says the executor gets nothing extra because they're also an heir, that's what goes.
But let's not forget, being an executor is more about duty than payday. It involves paying the estate's debts, distributing assets to heirs, and a lot more paperwork than you'd expect. And yes, while there's compensation, it comes with the territory of ensuring the decedent's wishes are respected and the estate is settled properly.
So, next time you hear someone say executors in Texas can take whatever they want as payment, you'll know that's not how it works. Executors are compensated, but within clear legal guidelines and the wishes expressed in the will.
Thanks for watching, and remember, estate planning and probate are all about the details. Stay informed and make sure your estate plans are clear, for the sake of your peace of mind and your loved ones' futures.
