How Are Executor Fees Calculated in Texas?

Texas Estates Code Section 352.002 provides a five-percent commission on qualifying cash the executor, administrator, or temporary administrator actually receives or pays in administering the estate, when the court finds that the estate was managed in compliance with the Code.1

The aggregate commission cannot exceed five percent of the gross fair market value of the estate subject to administration. That cap does not turn every asset into commission-bearing cash.1

Check the will first. A will can address compensation, and a representative can also face a different result when the court increases, reduces, denies, or forfeits compensation under the statutory standards.

Section 352.002 excludes several categories, including funds your loved one already held in a financial institution or brokerage at death, cash paid to heirs or beneficiaries, and qualifying life-insurance proceeds. It also excludes collecting a debt owed to the estate when the representative does not have to file suit.1

Create a transaction ledger instead of multiplying the estate value by five percent. For each cash receipt or payment, record the date, amount, source or payee, estate purpose, supporting document, and whether the statute includes or excludes it.

A property sale can create cash activity, but title, court authority, sale expenses, secured debt, distribution, and the exact transaction path still matter. Do not decide compensation from a closing statement without reviewing the administration record.

Texas law allows additional compensation when the statutory commission is unreasonably low for the services rendered and the court finds the representative managed the estate properly. It also allows a court to deny or reduce compensation when the representative fails to perform required duties or manages the estate improperly.2

The representative should be able to show the work performed, time-sensitive decisions, unusual property or claims, results, professional expenses, and why the request is reasonable. A large number without a work record is not a complete fee request.

If the will sets compensation or restricts it, review that language with licensed counsel before relying on the default statute.

Keep a complete ledger of receipts, payments, reimbursements, proposed compensation, supporting invoices, mileage or travel where relevant, property costs, professional fees, and distributions. Use the estate account rather than mixing personal and estate funds.

Reimbursement repays a proper estate expense advanced by the representative. Compensation pays for services. The same amount should not be treated as both, and every payment should be tied to a record that beneficiaries, counsel, an accountant, or the court can follow.

Before paying compensation, confirm the will, administration type, court orders, cash ledger, statutory exclusions, tax reporting, beneficiary communication, and applicable approval requirements.

Alix manages Texas estate settlement from start to finish, with legal support included. Your Estate Settlement Specialist owns the broader plan across accounts, property, bills, taxes, records, and beneficiary updates.

A licensed attorney handles the legal work required for executor compensation and estate administration, including advice, filings, hearings, and court responses. The court work and the operational work stay on one plan, so an accepted filing does not leave you to manage the rest of the estate alone.

You stay involved in the decisions only you can make. Alix handles the institution follow-up, property work, creditor records, tax documents, beneficiary communication, and closing work needed after the court grants authority.

Alix connects compensation to the administration record. Your Estate Settlement Specialist organizes accounts, payments, property work, creditor records, tax documents, beneficiary updates, and transactions, while licensed counsel handles legal analysis and court requests.