Is There Compensation for Executors in Florida?

Serving as the executor, which is a role often referred to as a personal representative in the state of Florida, is a major responsibility. You may need to gather and safeguard assets, pay debts and taxes, handle paperwork, and distribute property according to estate documents or state law. It’s time-consuming work, and it can be stressful.

Because of the time and energy involved, many personal representatives wonder: Do executors get paid for their efforts? The answer is yes, but the amount and method of payment can vary. To have your specific situation reviewed, connect with a Palm Harbor estate planning lawyer.

Do Executor Fees Vary State by State?

Florida law provides for “reasonable compensation” to personal representatives. The statute outlines a fee schedule based on the value of the estate:

• 3% of the first $1 million of the probate estate’s value
• 5% of the value from $1 million to $5 million
• 2% of the value from $5 million to $10 million
• 5% of the value above $10 million

These percentages apply to the estate’s inventory value plus income earned during administration. Additional fees may be allowed if the job involves unusual complexity, such as handling litigation, selling real estate, or running a business on behalf of the estate.

While Florida uses a percentage-based formula, other states take different approaches. Some set flat fees, some base compensation on an hourly rate, and others also use a percentage model, but the rates and rules can differ significantly.

For example, a fee considered reasonable in Florida might be higher or lower than what’s allowed in New York or Texas. If you’re serving as an executor for an estate in another state, you’ll need to follow that state’s rules, not Florida’s.

Can a Will Provide Extra Compensation?

Absolutely. A person creating a will can specify a different form of compensation for the executor. This could mean a higher payment, a flat dollar amount, or even specific property as a form of compensation. However, any such provision must be clearly written into the estate documents to be enforceable. In Florida, the executor can generally choose to accept the statutory fee or the amount stated in the will, whichever is more favorable.

Even though Florida law sets a framework, determining the exact amount an executor is entitled to can still be complex. Disputes sometimes arise among beneficiaries who may not understand why the executor is receiving payment. Legal professionals can advise executors on whether to take statutory fees or an alternative amount provided in the estate documents. They can also help resolve disputes between executors and beneficiaries regarding payment.

By working with a knowledgeable Palm Harbor estate planning lawyer, you can make sure compensation is set up properly in advance. Or, if you’re serving as an executor now, ensure you receive fair payment for the work you do.

Need guidance on personal representative compensation? Bring your Palm Harbor, FL, and Pinellas County, FL, estate questions and concerns to the attorneys at Miaoulis Law. Schedule a confidential consultation today.