I believe that that fee schedule only applies to professionals handling an estate, i.e, ,paid on a W2 or 1099. When I looked into a couple of years ago, the going rate in CA for a non-professional family member was 1%-2% of total assets, with the higher number based on if illiquid assets had to be sold (house, boat, art, and the like). If Sis does take a fee, she claims it as Other Income on her own tax return. The Trust does not issue her a 1099.The sister no longer has any power to make gifts as POA. The executor (same person) is now in charge, but her powers are set/limited by the will. Once she has her letters testamentary (or whatever they have in California), she can grant money only as described in the will.
I don't live in California, but executor compensation is clearly set in most states:
https://www.barrattorneys.com/blog/comp ... alifornia/
As long as she takes less than or equal to the statutory compensation, she should be fine with listing it as one of the expenses of the estate. Obviously, filing fees, appraisers, and so on are expenses of the estate that are not related to her compensation. It seems clear to me that she is an Independent Contractor, not an employee.
Executor compensation is subject to Federal Income Tax, just like (say ... ) a fee for giving a lecture.
Mom's PoA expires upon her death.
OP: did your parents own things as community property? If so, it gets a full step up in basis, but more importantly, is now owned by Dad. If an typical A/B or Family Trust, half of those assets are still owned by Dad, but he may have use of the income from those other half if he needs to for say, medical or long term care. Speak to an attorney on how the Trust is worded.
Per tax filing: last chance for Roth conversions at at the Married bracket.
Are there any other beneficiaries besides Dad and the kids? If so, Sis just can't be giving away money that another beneficiary may be owed. OTOH, if all beneficiaries agree to a payment, then no issues.
Statistics: Posted by Big Dog — Tue Jan 21, 2025 6:14 pm