Logging Executor Time in California

Emily just called, frantic. Her father passed last month, and she’s been named executor of his estate. She’s a successful veterinarian, used to billing by the hour, and is now overwhelmed by the sheer volume of tasks – sorting mail, dealing with creditors, prepping the house for sale, and endless paperwork. She asked, “Can I just… keep track of my time and bill the estate for it?” It’s a common question, and the answer is complicated. California law allows executors and administrators to be compensated, but it’s not as simple as logging hours and submitting a bill.

What are the Rules for Executor Compensation in California?

California Probate Code outlines how executors (Personal Representatives, as we call them) are compensated. It’s not a flat hourly rate, unfortunately. Instead, compensation is based on a statutory percentage of the estate’s value, determined at the time of estate administration. This percentage scales down as the estate’s value increases. For example, for estates under $100,000, the statutory rate is 4% of the adjusted gross value. Between $100,000 and $1,000,000 it drops to 3%, and over $1,000,000 it’s 1%. This means a larger estate yields a smaller percentage, but a larger total compensation amount.

How Does an Executor Get Paid?

To receive compensation, the Personal Representative must petition the court for “reasonable compensation.” This petition, filed using Form GC-350, requires a detailed accounting of all estate assets, income, and expenses. The court reviews this petition to ensure the requested amount is fair and just, considering the size of the estate, the complexity of the administration, and the time and effort actually expended. Probate Code § 8800 requires the Personal Representative to file the ‘Inventory and Appraisal’ within 4 months of receiving Letters. Failure to meet this deadline is a common reason for court appearances (OSC hearings) and potential removal.

What if the Estate is Small?

For very small estates – those valued under $166,250 – California offers a simplified probate process. In these cases, the statutory fee percentages are the same, but the overall amount of compensation may be limited. It’s often more efficient to handle these smaller estates with minimal fees to avoid the cost of court appearances and complex accounting.

Can an Executor Pay Themselves Before Court Approval?

Absolutely not. Any payment to the executor before a court order confirming the compensation is a breach of fiduciary duty. Probate Code § 9700 states that estate funds must be kept in insured accounts (FDIC) within California. You generally cannot invest in risky assets or commingle estate money with personal funds. Doing so is a breach of fiduciary duty. The executor must maintain meticulous records of all estate transactions, and these records are subject to court review.

What About Reimbursement for Expenses?

While a strict hourly rate isn’t allowed, the executor can be reimbursed for reasonable and necessary expenses incurred while administering the estate. This includes costs like appraisal fees, postage, advertising, travel, and even the cost of certified copies of documents. These expenses are separate from the statutory compensation and should be itemized in the petition. Notice of Proposed Action (NOPA) under Probate Code § 10580 allows an executor with full authority to take most actions without a court hearing, but they MUST mail a ‘Notice of Proposed Action’ to all interested parties 15 days before taking the action. If no one objects, you are protected from future liability.