Although many executors of wills manage the administration of the deceased person’s (decedent’s) estate without compensation, a person who makes a will (testator) may provide for compensation of the executor in the will. And many states have laws (statutes) that provide a formula for calculating the compensation of an executor. These laws vary from state to state and are often located in the estates code, probate code, or similarly-named code.

In North Carolina, the compensation of an executor of a will, also known as a personal representative, is governed by state statutes. Specifically, North Carolina General Statutes (N.C.G.S.) § 28A-23-3 outlines that an executor is entitled to receive reasonable compensation for their services. If the will itself specifies a certain amount of compensation for the executor, that provision will typically be honored. However, if the will does not specify compensation, or if the executor is to receive compensation as determined by the court, the statute provides guidance on what is considered reasonable. The compensation is often based on a percentage of the estate's value, the complexity of the estate, the time spent managing the estate affairs, and other factors. The exact percentage or amount is not fixed by law and can be subject to the discretion of the court. Executors are also entitled to reimbursement for any out-of-pocket expenses incurred in the administration of the estate. It is advisable for executors to keep detailed records of their time and expenses, and to consult with an attorney if there is any uncertainty about the appropriate level of compensation.