No, this is not the case.
In order to qualify for executor’s commission, the executor may file an application to the Court who will decide whether or not to grant commission. The application is considered on the grounds that there was something in the management of the deceased’s Estate that required greater application on behalf of the executor, for which he or she ought to be rewarded.
Under section 68 of the Succession Act (Qld) 1981 (and other similar legislation throughout Australia), the Court may award remuneration or compensate a personal representative as it deems appropriate. The Court is also able to attach certain conditions to the payment, if it thinks this is necessary.
The amount of commission granted is determined by the Court. In determining the amount of commission granted, the court considers the work done and the amount that would be reasonable in the circumstances.
Commission can be refused if the Court believes that either the delay in the administration was excessive or the executor’s efforts provided no benefit to the Estate. Also, if the executor has already been granted a legacy by the deceased and the court feels the amount is sufficient in terms of remuneration, executor’s commission can also be refused. If the Court finds that there has been fraud, dishonesty or a serious breach of trust, commission will also be refused.
The amount of commission can also be reduced if the Court finds there has been waste, carelessness or imprudence in the administration of the Estate.
Yes. Executor’s commission must be included in your taxpayer’s assessable income as it classifies as a ‘payment’ under paragraph 26(e) of the Income Tax Assessment Act 1936.
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