Are executor fees taxable income to executor

Asked over 4 years ago - Doylestown, PA

Is this income taxable to state or federal

Attorney answers (3)

  1. Steven J. Fromm

    Contributor Level 20

    Answered . Not only are they taxable income, but they are probably subject to social security taxes as well. They are taxable income for PA purposes too.

    Hope this helps. If you think this post was helpful, please check the thumbs up (helpful) tab below. Thanks.
    LEGAL DISCLAIMER
    Mr. Fromm is licensed to practice law in PA with offices in Philadelphia and Montgomery Counties. He can be reached at 215-735-2336 or at the email address listed below. He has received a 9.7 rating from AVVO and recently was featured as a 5Star Wealth Manager in the Philadelphia Magazine, November 2009 issue on page 123.
    Mr. Fromm is ethically required to state that the response herein is not legal advice and does not create an attorney/ client relationship. Also, there are no recognized legal specialties under Pennsylvania law. Any references to a trust, estate or tax lawyer refer only to the fact that Mr. Fromm limits his practice to these areas of the law. These responses are only in the form of legal education and are intended to only provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that if known could significantly change the reply or make such reply unsuitable. Mr. Fromm strongly advises the questioner to confer with an attorney in their state in order to ensure proper advice is received.
    By using this site you understand and agree that there is no attorney client relationship or confidentiality between you and the attorney responding. This site should not be used as a substitute for competent legal advice from a licensed attorney that practices in the subject area in your jurisdiction, who is familiar with your specific facts and all of the circumstances and with whom you have an attorney client relationship. The law changes frequently and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance described in the question or omitted from the question.
    Circular 230 Disclaimer - Any information in this comment may not be used to eliminate or reduce penalties by the IRS or any other governmental agency.

  2. Henry Daniel Lively

    Contributor Level 20

    Answered . Yes, this is taxable income to the executor.

    Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.

  3. Bruce Givner

    Pro

    Contributor Level 18

    Answered . Yes. Executor fees are taxable income to the executor under state and Federal law.

    That is why it is important, if the executor is also a beneficiary, to determine if it is wiser to waive the executor fee and receive the money as a benefit under the estate. The benefit under the estate might be tax free.

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

26,016 answers this week

2,780 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

26,016 answers this week

2,780 attorneys answering