A claimant, T, was a co-executor of his uncle’s estate, along with three other people. When his uncle died in 1955, his estate was very large, especially for that time. The will providers that the executors, as fiduciaries of the estate, were to be paid 10% of the gross value of the estate. The estate, consisting of stocks, land, investment property, and various other assets took 3 years to settle until final distribution was made to all 38 beneficiaries.

Despite the size of the estate, T’s activities as executor were minimal and consisted mainly of signing documents and authorizing attorneys and accountants to do the lion’s share of the work. Though he was compensated handsomely, this was not due to the intensity of his labor, but to the munificence of his late rich uncle.

Unlike a person who performs fiduciary services on a regular basis for a variety of clients, T only served as executor of this one estate.

Under these circumstances, T’s compensation in his capacity as executor of his uncle’s estate was not considered wages from self employment for social security purposes.

See Social Security Ruling (SSR) 63-46.

This material should not be construed as legal advice for any particular fact situation, but is intended for general informational purposes only. For advice specific to any individual situation, an experienced attorney should be contacted.