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.
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.
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.
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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.
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