It’s an honor to be the personal representative of someone’s estate – but it’s also a lot of work. There’s property to secure, bills to pay, heirs to locate, tax matters to handle and – eventually – distributions to make to beneficiaries when the estate closes. It isn’t a small job.
In Florida, a personal representative generally does not have to take on all of these responsibilities for free. The law permits personal representatives to receive reasonable compensation for services performed while administering an estate.
How much can a personal representative receive?
The amount a personal representative is due, however, may depend on the value of the estate, the terms of the will and the work required during the probate process. Florida has a schedule of commissions that are automatically considered reasonable. The commission is calculated using the net value of the estate that can be used to pay claims, which generally includes the value of the assets in probate as well as any income earned by the estate during its administration, such as through investments.
The statutory schedule provides for the following compensation to personal representatives:
- 3% of the first million in the estate
- 2.5% of the amount above a million and up to $5 million
- 2% of the amount over $5 million, up to $10 million
- 1.5% of any amount above $10 million
For example, if the compensable value of an estate is $500,000, a 3% commission would equal $15,000.
However, this schedule does not necessarily determine the fee in every estate. A will may contain specific provisions addressing compensation that take precedence. A personal representative can also choose to give up some or all of their compensation. In addition, some estates require a lot more work than others, justifying additional compensation. It is important to note, however, that the compensation is generally paid from the estate, rather than directly by the beneficiaries.
Questions about compensation can become particularly important when an estate is complicated or beneficiaries disagree about how it is being handled. A Florida probate attorney can explain how the state’s compensation rules apply to a particular estate and address disputes over whether a fee is reasonable.