Today TaxMama hears from Barbara in New Jersey, who says. “I am the executor of my mother’s estate in NJ. I would like to take the executor’s fee that I am entitled to. I am trying to find out if her home that was just sold is considered an estate asset (that I can include in my executor’s fee). Most CPA’s told me yes. My CPA that’s helping me settle her estate has told me no. I am getting conflicting answers. Is there a reason you know of why her home would not be considered an asset in the estate?”
My condolences on the death of your mother. That’s got to be tough – and then to have to deal with all these details.
What I don’t understand though is, are you taking a poll? Will you take the answer given most often?
Or the one you like best?
The CPAs may not be experts about the executor’s fee? That would be a legal matter, not a tax matter.
And the rules are specific to New Jersey. Each state has their own rules.
Ask the estate’s attorney to give you the answer. And if you want confirmation, have the attorney give you the citation in the NJ legal code.
Or devote a few minutes to looking it up yourself. Googling “new jersey executor fees” turned this up on the first page. http://www.njleg.state.nj.us/2000/Bills/s1000/952_i1.pdf
You’re right. Generally, when executor’s fees are based on the value of the assets of the estate, the house is included in the total value, if it’s a part of the estate – unless the state law specifically excludes the house. But ask your attorney for the definitive answer.
And remember, you can find answers to all kinds of questions about estate taxes and other tax issues, free. Where? Where else? At TaxMama.com.[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the subscribe link and join us.]
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- SENATE, No. 952 :: Clarifies law with regard to commissions of executors of estates