Can an Executor Be Paid in Victoria?

Are Executors Entitled to Payment?

The general position is that an executor acts gratuitously. The role is a fiduciary one — an executor must act in the best interests of the estate and the beneficiaries — and the law has historically been cautious about allowing fiduciaries to profit from their office. That starting point is important. An executor who simply pays themselves a fee for "their time" out of the estate, without authority, is acting outside the proper scope of the role and may be required to repay the funds.

That does not mean an executor can never be paid. The law recognises two quite different concepts:

• Reimbursement of proper out-of-pocket expenses — which simply restores the executor to the position they would have been in if they had not paid the expense personally; and
• Commission — a payment to the executor for their pains and trouble in administering the estate, which must be either agreed by all adult beneficiaries on an informed basis, or fixed by the Supreme Court of Victoria.

Many executors misunderstand this distinction. They assume that, because they have spent significant time on the estate, they can simply pay themselves an hourly rate from the estate funds. That is not the law in Victoria. The scope of the role is set out in detail in our guide to executor duties; the key point here is that personal payment for time is a separate question from reimbursement and is not available without proper authority.

Can an Executor Recover Expenses?

Yes — and this is rarely controversial. Reasonable expenses properly incurred in administering the estate are generally recoverable. Common examples include:

• Funeral expenses — including a reasonable wake — which are usually paid as a priority from the estate;
• Probate expenses — Supreme Court filing fees, advertising costs and the cost of obtaining death certificates;
• Legal costs — including the cost of preparing the probate application, advice on the executor's duties and any litigation properly defended or brought on behalf of the estate;
• Accounting costs — including date of death and estate tax returns, BAS, and advice on capital gains and income tax issues;
• Estate administration expenses — such as valuations, insurance, maintenance and security of real estate, removal and storage of chattels, bank and transfer fees, and reasonable travel directly related to estate work.

Reimbursement is not the same as personal payment. The executor is simply being repaid for money they have already spent on the estate's behalf. Receipts, invoices and a clear running ledger are essential. Where reimbursement is unusually large, or where there is any possibility of overlap with commission, the executor should obtain advice before drawing the funds.

What Is Executor Commission?

Executor's commission is a payment from the estate to the executor in recognition of the "pains and trouble" of administering the estate. It exists because the law recognises that some estates impose a real burden on the executor — long hours, difficult assets, contested claims, ongoing tax compliance — and that it would be unfair to expect the executor to bear that burden without recognition.

In Victoria, the statutory basis for commission is section 65 of the Administration and Probate Act 1958 (Vic). It allows the Court to allow an executor "such commission or percentage … as is just and reasonable" for their pains and trouble. Because commission reduces what the beneficiaries receive, the Court takes its supervisory role seriously. Commission is not a fee for service in the commercial sense; it is a discretionary allowance, subject to oversight.

When Can an Executor Claim Commission?

Commission is most appropriate where the executor's work has been significant and goes beyond a simple administration. Factors that point towards commission being available include:

• Significant work performed — sustained effort over many months, particularly where the executor has personally taken on tasks that might otherwise have been outsourced;
• Complexity of the estate — such as business interests, multiple properties, overseas assets, contested claims, tax disputes or vulnerable beneficiaries;
• Time and responsibility involved — including the duration of the administration, the decisions required of the executor and the level of skill and care needed;
• Beneficiary agreement — whether the adult beneficiaries are prepared, on a fully informed basis, to allow a specified commission; and
• Court approval — where agreement cannot be reached, or where some beneficiaries are minors or otherwise unable to consent, the question must be put to the Supreme Court.

It is not possible to say in advance that an executor is "entitled to" a specific amount of commission. Every estate is different, and the Court is not bound by any fixed entitlement.

How Is Executor Commission Calculated?

There is no automatic percentage for executor commission in Victoria. Older texts sometimes refer to historical rules of thumb, but the modern approach is firmly case-by-case. In practice, the Court considers a range of factors, including:

• the gross and net value of the estate;
• the nature and complexity of the assets and liabilities;
• the work actually performed by the executor, as distinct from work paid for separately (for example, legal or accounting work);
• the time and responsibility involved;
• the skill required and the results achieved for beneficiaries; and
• any difficulties, disputes or unusual features of the administration.

The amount allowed varies widely. In a straightforward estate, the Court may allow a modest amount or none at all. In a complex estate with substantial executor effort, a more significant allowance may be justified. What the Court will not do is treat commission as the equivalent of a professional adviser's fee scale. Every estate depends on its own circumstances.

Can Beneficiaries Object to Executor Commission?

Yes. Because commission reduces what the beneficiaries receive, they have a direct interest in any claim. Where commission is sought by agreement, every adult beneficiary whose share would be reduced must consent on a fully informed basis — that is, with proper disclosure of the work done, the amount proposed and the effect on their entitlement. Consent obtained without that disclosure is unlikely to bind the beneficiary later.

Where consent is not given, or cannot be given (for example, because a beneficiary is a minor or lacks capacity), the executor must apply to the Supreme Court. The Court will normally expect to see:

• detailed estate accounts, showing receipts, payments and the proposed distribution;
• a clear statement of the work performed by the executor, the time spent and any records kept;
• the position of each beneficiary on the proposed commission; and
• an explanation of any legal or accounting fees separately paid, so the Court can avoid double recovery.

Transparency is the executor's best friend in any commission application. Beneficiaries who feel they have been kept informed are far more likely to agree to a reasonable commission than beneficiaries who feel the executor has been opaque.

What If There Is More Than One Executor?

Many Victorian Wills appoint joint executors. Where two or more executors share the work, commission may still be available, but it must be considered in the round. The Court will look at the total commission, not what each executor would receive in isolation. In practice that usually means:

• joint executors should agree, in advance if possible, how any commission would be shared between them — for example, equally, or in proportion to the work done;
• the overall amount must still be just and reasonable having regard to the estate as a whole; and
• where one executor has effectively carried the administration, the allocation should reflect that.

Where the relationship between joint executors has broken down to the point that the administration is suffering, commission may not be the only issue. In serious cases beneficiaries or a co-executor may consider removing an executor, although that is a remedy of last resort. Where one named executor will not act at all, the position is considered in our guide on what happens when an executor refusing to act.

Can a Professional Executor Be Paid?

Professional executors — typically solicitors, accountants or trustee companies — occupy a slightly different position. A trustee company is generally authorised by its own legislation to charge fees under a published scale. A solicitor or accountant named as executor in their professional capacity should be authorised by a clear "charging clause" in the Will, permitting them to charge their usual professional fees for work done in the administration.

Even where a charging clause is in place, it is important to distinguish:

• Legal fees — for legal work properly done in the administration (such as the probate application, advice on contested claims and conveyancing of estate property), which are charged at the firm's normal rates under the charging clause; and
• Executor commission — for the non-legal work of administering the estate, which still falls to be considered as commission under the ordinary principles, even if the executor is a professional.

Without a charging clause, a solicitor or accountant executor is in much the same position as a lay executor: they may be reimbursed for proper expenses and may seek commission, but they cannot simply invoice the estate for their time at professional rates. The drafting of the Will matters.

Practical Tips for Executors

Executors who think they may eventually seek commission, or significant reimbursement, can put themselves in a much stronger position by adopting a few simple habits from the outset:

1. Keep records — open a dedicated estate file (paper or digital) and keep every relevant document, valuation, statement and piece of correspondence in one place.
2. Record time spent — a simple log of dates, tasks and hours is invaluable evidence later, particularly in a contested commission application.
3. Retain invoices — every expense paid on behalf of the estate should be supported by an invoice or receipt and reflected in the running ledger.
4. Maintain transparency — keep beneficiaries reasonably informed of progress and significant decisions; this dramatically reduces the risk of objections to commission later.
5. Avoid drawing payment without authority — never pay yourself commission unless the beneficiaries have consented on a fully informed basis, or the Court has approved it.
6. Seek advice early — particularly before drawing any commission, entering into a deeds of family arrangement, or finalising the estate administration.

Conclusion

An executor in Victoria is not automatically entitled to be paid for their time. The default position is that the role is gratuitous. Reasonable expenses properly incurred in administering the estate are recoverable, and in many cases the executor may also be entitled to commission for the pains and trouble of the administration — but commission requires either the informed consent of all adult beneficiaries or an order of the Supreme Court of Victoria.

Because commission reduces what beneficiaries receive, the safest course for any executor is to keep careful records, communicate openly and obtain advice before drawing any payment from the estate. Doing so protects the executor personally, reduces the risk of dispute and preserves the relationship with the beneficiaries — which is, in the end, the best outcome for the estate as a whole.

Frequently Asked Questions