The Estate Planning Guide Est. 2026

How Much Does an Executor Get Paid in Montana?

By The Estate Planning Guide Editorial Team Researched against primary sources

Published June 11, 2026 9 min read

Quick answer

In Montana, a personal representative (executor) is entitled to reasonable compensation, but the statute caps it: no more than 3% of the first $40,000 of the estate's value and 2% of the value above $40,000 (Mont. Code Ann. §72-3-631). On a $400,000 estate that ceiling works out to about $8,400. The estate's attorney is paid separately, and family executors often waive the fee because it counts as taxable income.

⚠️ Educational information only — not legal, tax, or financial advice.

The figures on this page are general estimates. Laws, fees, thresholds, and prices differ by state and change often, and your own situation may change the result. Before you act, confirm the current numbers and rules for Montana with a licensed professional — an attorney, tax advisor, or licensed agent as appropriate. Reading this page does not create a professional relationship.

What an executor gets paid in Montana

Montana law (Mont. Code Ann. §72-3-631) entitles the personal representative to reasonable compensation for services, but sets a statutory ceiling: compensation may not exceed 3% of the first $40,000 of the estate's value (as reported for federal estate tax purposes) plus 2% of the value above $40,000. In joint-tenancy termination proceedings the cap is 2% of the interest passing, and the court may allow additional compensation for extraordinary services (not exceeding the ordinary amount).

The executor (in some states called the personal representative) is the person who settles the estate — gathering assets, paying debts and taxes, and distributing what’s left. The fee is their compensation for that work, paid out of the estate before the beneficiaries receive their shares.

A Montana example

On a $400,000 Montana estate, the statutory ceiling is $1,200 (3% of the first $40,000) plus $7,200 (2% of the remaining $360,000) — about $8,400 maximum. The court can approve less if the work done was modest, and the estate's attorney fee is separate.

Statutory vs. “reasonable” — how Montana decides

The cap is a maximum, not an automatic entitlement — the court awards what is reasonable up to that ceiling. Extraordinary services (selling real estate, handling litigation, running a business) can justify additional compensation, but not more than the ordinary amount allowed.

A quick map of how states handle this: some (like California, New York, Florida, and Ohio) set the fee by a statutory percentage; others (like Pennsylvania, Illinois, and Michigan) use a “reasonable compensation” standard with no fixed schedule. Montana falls into the reasonable camp.

How the fee is taxed in Montana

An executor’s commission is taxable income to the person who receives it, reported as compensation for services. An inheritance is not taxed as income to the beneficiary. (IRS Publication 559.)

This distinction has a documented consequence where the executor is also a beneficiary: the same dollars reach that person either way, but the commission is subject to income tax and the inherited share is not. The commission is also deductible to the estate, while a distribution to a beneficiary is not — so the net effect depends on the estate’s tax position as well as the individual’s.

Other documented factors:

  • Where the executor is not a beneficiary, waiving the commission does not redirect the money to them.
  • Montana courts can approve additional compensation for extraordinary work — a contested estate, a business wind-down, a property sale.
  • The commission is a maximum entitlement, not a requirement. An executor may take less, or waive it entirely, and the waiver is commonly documented in writing before the estate closes.

What the fee does and doesn’t cover

The commission compensates the executor for ordinary administration. Two things to keep separate:

  • The attorney’s fee is separate. The estate’s lawyer is paid on top of the executor’s commission — and in some states (California is the clearest example) the attorney is entitled to the same statutory amount as the executor, effectively doubling the statutory cost.
  • Extraordinary work can be billed extra. Selling real estate, running a business, handling litigation or a tax audit — Montana courts can approve additional compensation for work beyond routine administration.

Executor fees vs. total probate cost in Montana

The executor’s fee is only one line on the probate bill. Court costs, the attorney’s fee, appraisals, bonds, and publication all add up on top of it. To see the full picture for Montana, read How Much Does Probate Cost in Montana?.

And remember: assets that avoid probate entirely — through a funded living trust, beneficiary designations, or joint ownership — generally pay no executor commission at all, because they never pass through the estate the executor administers.

What the record shows

Item Montana
Basis for compensation reasonable
Governing statutes Mont. Code Ann. §72-3-631 (compensation of personal representative); Mont. Code Ann. §72-3-633 (review of employment and compensation)
State authority Montana Code Annotated (official, legmt.gov)

The commission compensates ordinary administration and is separate from the estate attorney’s fee. It is taxable income to the executor; an inherited share is not. Extraordinary services can be separately compensated on court approval. Assets that pass outside probate — by funded trust, beneficiary designation, or joint ownership with survivorship — are not part of the estate the commission is calculated on.

Frequently asked questions about Montana executor fees

How much should an executor be paid for handling a will in Montana?

In Montana, a personal representative (executor) is entitled to reasonable compensation, but the statute caps it: no more than 3% of the first $40,000 of the estate's value and 2% of the value above $40,000 (Mont. Code Ann. §72-3-631). On a $400,000 estate that ceiling works out to about $8,400. The estate's attorney is paid separately, and family executors often waive the fee because it counts as taxable income.

What does Montana consider a reasonable — or excessive — executor fee?

Either way, the test is whether the fee is in proportion to the work. Where the fee is set by a statutory schedule, that scheduled amount is treated as reasonable for ordinary administration, and anything above it (for extraordinary work like selling real estate or running a business) has to be justified to the court. Where the standard is “reasonable compensation” with no fixed percentage, the court decides what fits the actual work — so a commission out of proportion to the effort can be questioned by the beneficiaries and reduced. The cap is a maximum, not an automatic entitlement — the court awards what is reasonable up to that ceiling. Extraordinary services (selling real estate, handling litigation, running a business) can justify additional compensation, but not more than the ordinary amount allowed.

Do executors of a trust get paid in Montana?

Watch the terms: a will has an executor, while a living trust has a trustee — different roles with different rules. A successor trustee who settles a trust is also entitled to reasonable compensation in Montana, but that’s governed by the trust document and state trust law, not the executor-fee rule on this page. If the trust names a fee, that controls; otherwise “reasonable compensation” applies. Like executors, many family trustees waive the fee when they’re also the main beneficiary. See Trustee vs. Executor.

Are executor fees taxable in Montana?

Yes. An executor’s commission is taxable income to whoever receives it (reported on their federal return, and on their state return where Montana taxes income). An inheritance, by contrast, is not taxed as income. That gap is exactly why an executor who is also a main beneficiary often waives the fee — the same dollars arrive either way, but the fee is taxed and the inheritance isn’t.

Can an executor in Montana waive the fee?

Yes. Taking the commission is a choice, not an obligation — an executor can decline it entirely or take less than the maximum. When the executor is also inheriting, waiving is usually the smarter move for the tax reason above.

When is the executor’s fee paid?

The commission is paid out of the estate during administration — after debts and taxes, before the remaining assets are distributed to the beneficiaries — and generally has to be approved as part of settling the estate. It is not paid upfront.

Executor fees in other states

Compare Montana with what executors are paid in other states:

This page explains executor (personal representative) compensation in Montana in general terms as of 2026. It is not legal or tax advice; fee rules, statutes, and figures change and depend on your situation. Confirm current rules with a licensed Montana attorney, and ask a tax professional before waiving or accepting a fee. Sources: Montana Code Annotated (official, legmt.gov); Mont. Code Ann. §72-3-631 (compensation of personal representative), Mont. Code Ann. §72-3-633 (review of employment and compensation).

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