Executor Commission UK (2026): Can Executors Charge for Their Time — and When Is Payment Allowed?

The default position in English law is that executors and administrators act GRATUITOUSLY — they have no legal right to receive any payment for the time and effort they spend administering the estate, unless specifically authorised. This rule applies regardless of how time-consuming or demanding the administration is: (1) THE GRATUITOUS RULE: an executor's duty is a fiduciary duty — they hold and manage the estate's assets for the benefit of the beneficiaries. As with trustees, personal representatives are expected to act without remuneration. This equitable principle has been part of English law for centuries; (2) THE EFFECT IN PRACTICE: a family member appointed as executor who spends 100 hours dealing with probate, HMRC, solicitors, estate agents, banks, and beneficiaries has no right to charge any amount for that time — regardless of the complexity or the estate's size. The estate bears no obligation to the executor for their personal time unless it is specifically authorised; (3) WHAT IS DIFFERENT — DISBURSEMENTS: an executor IS entitled to be reimbursed for out-of-pocket expenses (disbursements) incurred in administering the estate — probate application fees; professional valuation fees; travel expenses to deal with estate property; storage costs; legal fees paid to third parties. These are estate expenses, not remuneration; (4) THE THREE EXCEPTIONS: there are three ways an executor can receive remuneration for their time and services: (a) the will contains a charging clause authorising payment; (b) the executor is a professional and satisfies the requirements of TA 2000 s.29 (professional trustee remuneration); (c) the court authorises payment under its inherent jurisdiction (exceptional only); (5) IMPACT ON BENEFICIARIES: executor remuneration (where authorised) reduces the estate available for distribution. It ranks as a testamentary expense — paid before the residue is distributed to beneficiaries. Beneficiaries should understand that a professionally-charged executor will significantly reduce the inheritance.

Trustee Act 2000 s.29 gives professional personal representatives a statutory right to reasonable remuneration, even without a charging clause in the will: (1) WHO QUALIFIES — PROFESSIONAL CAPACITY: the executor must be acting in a 'professional capacity'. This means they must be carrying on a profession or business the services of which are not available to the general public without charge. Examples: (a) solicitors acting as executors; (b) chartered accountants; (c) financial advisers; (d) professional will-writing or probate service companies; (e) licensed insolvency practitioners; (f) banks and trust corporations appointed as executors; (g) professional estate administrators. A retired solicitor acting as a personal favour is unlikely to qualify in the same way as if they were acting in the course of their professional practice; (2) THE 'NOT SOLE EXECUTOR' REQUIREMENT: TA 2000 s.29 only applies if the professional is NOT the sole executor — there must be at least one other executor (or trustee) who is not entitled to remuneration under s.29. This is because the s.29 right requires the written consent of the co-executor(s). If the professional is the sole executor, they must rely on a charging clause in the will; (3) WRITTEN CONSENT OF CO-EXECUTORS: the professional executor must obtain the written consent of all co-executors who are not also receiving remuneration under s.29 (IHTA 2000 s.29(2)). A simple letter confirming consent suffices. Without this written consent, the s.29 right is not triggered; (4) REASONABLE REMUNERATION: the statutory right is to 'reasonable remuneration' — not to whatever the professional chooses to charge. What is reasonable depends on: (a) the time spent; (b) the complexity of the estate; (c) the professional's usual charging rate; (d) the size and nature of the estate; (e) whether the professional provided services outside their professional expertise (e.g. a solicitor also managing property). Courts can review and reduce professional executor fees that are excessive; (5) SCOPE: TA 2000 s.29 applies to trust services as well as estate administration — it covers both the role of executor (administering the estate) and the ongoing role of trustee (if assets are settled into a trust after death and the professional is also a trustee).

A charging clause is a provision in the will that expressly authorises an executor (or trustee) to receive remuneration for their professional services. This is the most common and reliable way to ensure a professional executor can be properly paid: (1) TYPICAL CHARGING CLAUSE: 'Any of my executors who is engaged in a profession or business shall be entitled to charge for all services provided by that person or their firm to my estate or any trust created under my will on the same basis as if that person were not one of my executors and whether or not the work could have been performed by a lay executor and without the need to account for any profit earned by that person or firm'; (2) WHAT THE CLAUSE ACHIEVES: (a) authorises reasonable professional fees on normal commercial terms; (b) avoids the need to rely on TA 2000 s.29 (which requires written co-executor consent and at least two executors); (c) allows charging even if the professional is the sole executor; (d) is a wider authority than TA 2000 s.29 — it can be drafted to cover any person, not just those in a formal profession; (3) LAY EXECUTOR CHARGING CLAUSE: it is also possible to include a clause authorising a lay executor to charge for their time at a specified rate. Example: 'Any executor of mine who is not a professional may charge a reasonable daily rate for the time they spend administering my estate, at a rate not exceeding £X per day'. This is less common but entirely valid; (4) WHERE THE CLAUSE DOES NOT WORK: (a) a beneficiary who is also an executor cannot use the charging clause to receive payment that conflicts with the rule against conflict of interest in beneficiaries; (b) the clause must be included in the original will — it cannot be added after death by a deed of variation or otherwise; (c) no charging clause was included: rely on TA 2000 s.29 (if applicable) or apply to the court; (5) PROFESSIONAL WILL-WRITING FIRMS AND THEIR OWN CHARGING CLAUSES: be aware that some professional will-writing firms insert charging clauses that appoint themselves (or their associated companies) as executors and charge the estate substantial fees. These clauses are sometimes included in standard wills without the testator fully understanding the cost. The testator should consider whether to appoint a professional executor at all, or to appoint a trusted family member and instruct a solicitor separately to assist with administration.

Remuneration received by an executor for their services is income — not a legacy — and is taxed accordingly: (1) THE DISTINCTION BETWEEN REMUNERATION AND LEGACY: a charging clause grants the executor the right to charge professional fees. These fees are paid from the estate before distribution — they are an estate expense, not a gift. A legacy left to an executor in the will (e.g. 'I leave £5,000 to my solicitor John Smith') is entirely different — it is a testamentary gift, not remuneration, and it is not income for John Smith (legacies are capital receipts); (2) INCOME TAX — EMPLOYED PROFESSIONALS: if an executor is an employed solicitor or accountant charging through their firm, the fees are income of the firm — taxed as trading/professional income in the normal way, subject to corporation tax or income tax and NIC; (3) INCOME TAX — SOLE TRADERS AND FREELANCERS: a professional acting as executor in their own name (not through a firm) receives the fees as professional income — taxable as self-employment income; (4) ESTATE'S PERSPECTIVE: the estate can deduct the executor's professional fees as testamentary expenses before calculating IHT. Professional fees for administering the estate (probate, dealing with HMRC, estate accounts) reduce the chargeable estate. HMRC allows reasonable professional costs; (5) TYPICAL PROFESSIONAL EXECUTOR FEES: professional firms (solicitors, probate companies, banks) administering estates typically charge between 1% and 3% of the gross estate value, plus disbursements and VAT. On an estate of £500,000, this could be £5,000–£15,000 (plus VAT at 20%). Some firms charge on a time basis; others on a percentage plus hourly rate for complex work. The 'percentage of estate' model is now disfavoured by the Law Society, which recommends time-based billing; (6) COURT CONTROL: if an executor charges excessive fees, a beneficiary can apply to the court for a review and assessment of the executor's remuneration. The court can reduce fees that are disproportionate to the work done or the estate's value.

In exceptional cases, the court can authorise remuneration for an executor or trustee who has no charging clause and does not qualify under TA 2000 s.29: (1) THE COURT'S INHERENT JURISDICTION: the court has jurisdiction over the administration of estates and trusts and can make orders authorising remuneration where justice demands it. This jurisdiction predates statute and is separate from TA 2000 s.29 and the Trustee Act 1925. The court can authorise past remuneration (remunerating work already done) or prospective remuneration (for future services); (2) WHEN THE COURT WILL AUTHORISE: courts are reluctant to disturb the gratuitous rule — they only authorise payment in exceptional circumstances where: (a) the executor has performed unusually demanding, complex, or specialist work clearly beyond the ordinary scope of administration; (b) the work was of significant benefit to the estate or the beneficiaries; (c) failure to remunerate would amount to a windfall for the beneficiaries at the expense of the executor who provided valuable services; (d) a co-executor's consent has been unreasonably withheld (preventing TA 2000 s.29 from applying); (3) THE APPLICATION: the application is made to the Chancery Division of the High Court (or the County Court for smaller estates) under CPR Part 64. The executor must set out: the nature of the work done; the hours spent; the professional rates that would normally apply; evidence of the benefit to the estate; reasons why no charging clause was included or why TA 2000 s.29 does not apply. This is an expensive and uncertain process — professional legal advice is essential; (4) PRACTICAL REALITY: for most family executors spending time administering a parent's estate, the court route is not realistic — the legal costs of the application may exceed the remuneration sought. The gratuitous rule is well-established. The best approach is always to ensure the will contains a charging clause if a professional executor is intended; (5) SOLICITOR NEGLIGENCE: if a solicitor drafted the will and failed to include a charging clause when instructed to do so, the solicitor may be liable for the professional executor's financial loss — a claim in professional negligence.