Do I have to file a estate tax return for this year?

Full question:

Where can I find info on what fee, and when, I am entitled to receive as Executrix of my Aunt's estate (slightly less than 1 million) for settling the estate. The will was probated in Texas, where she lived. Have been told that it is 5% of what I have collected for the estate and 5% of what I have had to pay out. I have converted everything to cash in an estate checking account. Do I have to file a estate tax return for this year? She died in 2006. Have filed for 2006.

• Category: Taxes
• Date: 04/07/2025
• State: North Carolina

Answer:

Please see:

http://www.irs.gov/taxtopics/tc356.html

The following are TX statutes:

§ 241. COMPENSATION OF PERSONAL REPRESENTATIVES.

 

(a)
Executors, administrators, and temporary administrators shall be
entitled to receive a commission of five per cent (5%) on all sums
they may actually receive in cash, and the same per cent on all sums
they may actually pay out in cash, in the administration of the
estate on a finding by the court that the executor or administrator
has taken care of and managed the estate in compliance with the
standards of this code; provided, no commission shall be allowed
for receiving funds belonging to the testator or intestate which
were on hand or were held for the testator or intestate at the time
of his death in a financial institution or a brokerage firm,
including cash or a cash equivalent held in a checking account,
savings account, certificate of deposit, or money market account;
nor for collecting the proceeds of any life insurance policy; nor
for paying out cash to the heirs or legatees as such; provided,
further, however, that in no event shall the executor or
administrator be entitled in the aggregate to more than five per
cent (5%) of the gross fair market value of the estate subject to
administration. If the executor or administrator manages a farm,
ranch, factory, or other business of the estate, or if the
compensation as calculated above is unreasonably low, the court may
allow him reasonable compensation for his services, including
unusual effort to collect funds or life insurance. For this
purpose, the county court shall have jurisdiction to receive,
consider, and act on applications from independent executors. The
court may, on application of an interested person or on its own
motion, deny a commission allowed by this subsection in whole or in
part if:

 

(1) the court finds that the executor or administrator has
not taken care of and managed estate property prudently; or

(2) the executor or administrator has been removed under
Section 149C or 222 of this code.

(b) Definition. In this section, "financial institution"
means an organization authorized to do business under state or
federal laws relating to financial institutions, including banks
and trust companies, savings banks, building and loan associations,
savings and loan companies or associations, and credit unions.

 

 

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended by

Acts 1957, 55th Leg., p. 53, ch. 31, § 8; Acts 1987, 70th Leg.,

ch. 919, § 1, eff. Sept. 1, 1987; Acts 1991, 72nd Leg., ch. 468,

§ 1, 2, eff. Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 957, §

42, eff. Sept. 1, 1993.

§ 242. EXPENSES ALLOWED. Personal representatives of
estates shall also be entitled to all necessary and reasonable
expenses incurred by them in the preservation, safekeeping, and
management of the estate, and in collecting or attempting to
collect claims or debts, and in recovering or attempting to recover
property to which the estate has a title or claim, and all
reasonable attorney's fees, necessarily incurred in connection
with the proceedings and management of such estate, on satisfactory
proof to the court.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

 

 

§ 243. ALLOWANCE FOR DEFENDING WILL. When any person
designated as executor in a will or an alleged will, or as
administrator with the will or alleged will annexed, defends it or
prosecutes any proceeding in good faith, and with just cause, for
the purpose of having the will or alleged will admitted to probate,
whether successful or not, he shall be allowed out of the estate his
necessary expenses and disbursements, including reasonable
attorney's fees, in such proceedings. When any person designated
as a devisee, legatee, or beneficiary in a will or an alleged will,
or as administrator with the will or alleged will annexed, defends
it or prosecutes any proceeding in good faith, and with just cause,
for the purpose of having the will or alleged will admitted to
probate, whether successful or not, he may be allowed out of the
estate his necessary expenses and disbursements, including
reasonable attorney's fees, in such proceedings.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended by

Acts 1983, 68th Leg., p. 5227, ch. 957, § 1, eff. Sept. 1, 1983;

Acts 1987, 70th Leg., ch. 462, § 1, eff. Sept. 1, 1987.

§ 244. EXPENSE ACCOUNTS. All expense charges shall be
made in writing, showing specifically each item of expense and the
date thereof, and shall be verified by affidavit of the
representative, filed with the clerk and entered on the claim
docket, and shall be acted on by the court in like manner as other
claims against the estate.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

 

 

§ 245. WHEN COSTS ARE ADJUDGED AGAINST

REPRESENTATIVE. When a personal representative neglects to
perform a required duty or if a personal representative is removed
for cause, the personal representative and the sureties on the
personal representative's bond are liable for:

(1) costs of removal and other additional costs incurred
that are not authorized expenditures, as defined by this code; and

 

(2) reasonable attorney's fees incurred in removing the
personal representative or in obtaining compliance regarding any
statutory duty the personal representative has neglected.

 

 

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended by

Acts 1977, 65th Leg., p. 1171, ch. 448, § 3, eff. Aug. 29, 1977;

Acts 1983, 68th Leg., p. 631, ch. 140, § 1, eff. Aug. 29, 1983.

Amended by Acts 2003, 78th Leg., ch. 1060, § 13, eff. Sept. 1,
2003.