What Assets Count?

This page explains how executor compensation is calculated in California probate and which assets are included in that calculation. This information is provided for educational purposes only and does not constitute legal advice.

 

In California probate, statutory executor compensation is based on the estate’s gross value.

 

Gross value is not the same as net proceeds. It is not what remains after debts are paid. It is the total appraised value of probate assets. Understanding what counts toward that value often explains why disputes arise.

 

California law provides a statutory fee schedule based on the gross value of probate assets:

• 4% of the first $100,000.
• 3% of the next $100,000.
• 2% of the next $800,000.
• 1% of the next $9 million.
• 0.5% of the next $15 million.

The court approves compensation as part of the final accounting.

The calculation is based on appraised value, not on cash remaining in the estate.

 

Assets that are part of the probate estate and are subject to court administration generally count toward the statutory fee base.

These may include:

• Real estate titled solely in the decedent’s name.
• Rental property held individually.
• Bank accounts without named beneficiaries.
• Brokerage accounts without transfer-on-death designations.
• Business interests held individually.
• Vehicles titled solely in the decedent’s name.
• Personal property of material value.
• Farm equipment, machinery, or tools owned individually.

The value used is typically the date-of-death appraised value, not the later sale price.

If a property was worth $1,500,000 at the date of death, that value may be used in calculating statutory fees, even if the net proceeds are lower after debts and expenses.

 

Not all assets are part of the probate estate.

Assets that pass outside of probate generally do not count toward statutory executor compensation.

Examples may include:

• Property held in a living trust.
• Joint tenancy property with right of survivorship.
• Accounts with named payable-on-death beneficiaries.
• Retirement accounts with designated beneficiaries.
• Life insurance payable directly to a named beneficiary.

If an asset does not require probate administration, it usually is not included in the statutory fee calculation.

 

In many probate cases, conflict is not about responsibility.

It is about money.

If the estate includes substantial real estate or other high-value assets, statutory compensation may be significant.

Families should understand:

• The compensation is set by statute.
• The executor does not invent the number.
• The court must approve the fee.
• The executor may waive or reduce compensation voluntarily, but is not required to.

Clarity reduces suspicion.

Suspicion increases conflict.

 

Executor compensation is not automatic simply because someone is named in a Will.

The Personal Representative must:

• Petition the court.
• Provide notice to heirs and beneficiaries.
• Inventory and appraise assets.
• Safeguard estate property.
• Maintain records of income and expenses.
• Address creditor claims.
• File required reports and accountings.
• Obtain court approval for final distribution.

The fee compensates for legal responsibility and fiduciary exposure.

Serving as executor carries risk, documentation duties, and potential personal liability if mishandled.

 

Money, control, and misunderstanding often sit at the root of probate conflict.

When families understand:

• What assets count.
• How compensation is calculated.
• What responsibilities are required

The emotional temperature often lowers.

Probate is procedural. It is not personal.

Clarity protects both relationships and estate value.

 

If you would like to discuss how estate structure affects probate real estate decisions, please schedule a structured conversation.