Personal Representative (Executor) Compensation and Fees in Miami, Florida

Serving as a personal representative of a Florida estate is a significant responsibility that demands time, diligence, and careful attention to legal requirements. Florida law recognizes the burden this role places on the individual or institution serving in this capacity and provides for reasonable compensation. Under F.S. § 733.617, the personal representative—sometimes referred to informally as the executor or administrator—is entitled to compensation for their services in administering the estate through the probate process.

At the Law Offices of Albert Goodwin, PA, we advise personal representatives on the compensation they are entitled to receive and represent beneficiaries who believe that the fees claimed by a personal representative are excessive or unwarranted. Understanding how executor compensation works in Florida is critical for anyone involved in a probate proceeding, whether as the fiduciary or as a beneficiary monitoring the administration of the estate.

The Statutory Fee Schedule Under F.S. 733.617

Florida Statute Section 733.617 establishes a percentage-based fee schedule that serves as a presumptively reasonable guideline for personal representative compensation. Unlike states that leave compensation entirely to the discretion of the court with no statutory guidance, Florida provides a detailed framework that offers predictability to both personal representatives and beneficiaries. Under this statutory framework, reasonable compensation for a personal representative is calculated based on the compensable value of the estate according to the following tiers:

• 3% on the first $1 million of compensable estate value
• 2.5% on the next $4 million (from $1 million to $5 million)
• 2% on the next $5 million (from $5 million to $10 million)
• 1.5% on the next $5 million (from $10 million to $15 million)
• 1% on the next $10 million (from $15 million to $25 million)

For estates with a compensable value exceeding $25 million, the court determines a reasonable fee based on the facts and circumstances of the particular estate. The percentages set forth in the statute are not mandatory caps or floors but are instead treated as presumptively reasonable. A personal representative who claims compensation within the statutory schedule need not prove that the amount is reasonable; it is the objecting party who bears the burden of demonstrating that the compensation should be adjusted.

How Compensable Estate Value Is Calculated

The compensable value of the estate is the figure upon which the personal representative's percentage-based fee is calculated. It is not the same as the gross estate for federal estate tax purposes, nor is it necessarily the same as the value of the probate estate. Under F.S. § 733.617, the compensable value of the estate is the inventory value of the estate assets plus income earned during administration, adjusted as the court may determine to be equitable.

Certain assets may be included in or excluded from the compensable estate depending on the degree of the personal representative's involvement. For example, assets that pass outside of probate—such as jointly held property, assets with designated beneficiaries, or assets held in trust—are generally not included in the compensable estate unless the personal representative was required to take action with respect to those assets. The court retains discretion to adjust the compensable value upward or downward based on the actual work performed by the personal representative. Accurate estate accounting is essential to establishing the compensable value and supporting the personal representative's fee claim.

The Reasonable Compensation Standard

While the statutory fee schedule provides a useful benchmark, Florida law ultimately requires that personal representative compensation be “reasonable.” Reasonableness is evaluated in light of the totality of the circumstances, and the court may consider factors including:

• The size, complexity, and nature of the estate
• The time and labor required for administration
• The skill and expertise demanded by the particular estate
• Whether the personal representative dealt with unusual complications such as contested claims, litigation, business operations, or complex tax issues
• The results achieved for the estate and its beneficiaries
• Whether the personal representative is a professional fiduciary or a layperson

In straightforward estates with minimal complications, compensation at or near the statutory percentages is typically approved without objection. In more complex matters, the personal representative may seek additional compensation beyond the statutory schedule, or the court may reduce the fee if the personal representative's performance was deficient.

Extraordinary Compensation

When the administration of an estate requires the personal representative to perform services beyond the ordinary scope of estate administration, the personal representative may petition the court for extraordinary compensation. Extraordinary services may include managing an active business owned by the decedent, handling complex real estate transactions, prosecuting or defending litigation on behalf of the estate, resolving contested creditor claims, dealing with complicated tax audits, or administering assets located in multiple jurisdictions.

Extraordinary compensation is awarded in addition to the statutory fee and must be separately justified. The personal representative seeking extraordinary fees must demonstrate the nature of the extraordinary services performed, the time expended, and the benefit conferred upon the estate. The court has broad discretion in setting the amount of extraordinary compensation and will evaluate the request based on the same reasonableness standard that governs ordinary compensation.

It is important to note that extraordinary compensation is not automatically granted merely because the estate was large or the administration took a long time. The personal representative must show that the services went beyond what is ordinarily expected of a fiduciary in the normal course of estate administration. Detailed time records and documentation of the extraordinary work performed can significantly strengthen a petition for extraordinary fees.

Attorney Fee Entitlement

In addition to the personal representative's own compensation, the estate is generally responsible for paying the fees of the attorney retained by the personal representative to assist with the administration. Under F.S. § 733.6171, the attorney for the personal representative is entitled to reasonable compensation for services rendered, payable from the estate. The attorney fee schedule in F.S. § 733.6171 mirrors the personal representative's fee schedule, with the same percentage tiers applied to the compensable value of the estate.

Attorney's fees and personal representative compensation are separate entitlements. It is not uncommon for the combined fees of the personal representative and their attorney to equal approximately six percent of the first million dollars of estate value. The attorney's fees must also be disclosed in the estate's accounting and are subject to court approval. When beneficiaries dispute the amounts claimed, the court will conduct a review and may adjust the fees as appropriate.

When Beneficiaries Can Challenge Fees

Beneficiaries and other interested persons have standing to challenge the compensation claimed by a personal representative or their attorney. Under Florida law, any interested person may file an objection to the personal representative's compensation, and the court will then conduct a hearing to determine whether the fees are reasonable. Common grounds for challenging personal representative fees include:

• The compensation claimed exceeds what is reasonable given the size and complexity of the estate
• The personal representative performed poorly, caused delays, or failed to diligently administer the estate
• The personal representative delegated most of their duties to the estate attorney and should not receive full compensation for services they did not personally perform
• The estate was straightforward and did not justify fees at the full statutory rate
• There were multiple personal representatives serving jointly, and the combined compensation is excessive

Beneficiaries who suspect that fees are unreasonable should carefully review the estate accounting and, if necessary, file formal objections through a contested accounting proceeding. The burden of proving that the fees are unreasonable generally falls on the objecting party when the personal representative claims compensation within the statutory schedule.

Forfeiture of Fees for Misconduct

A personal representative who engages in misconduct during the administration of an estate may forfeit some or all of their right to compensation. Florida courts have the authority to deny or reduce compensation where the personal representative has breached their fiduciary duty, engaged in self-dealing, mismanaged estate assets, failed to file accountings, or otherwise acted contrary to the interests of the estate and its beneficiaries.

Forfeiture of fees is a remedy that courts impose when the personal representative's conduct has caused harm to the estate or when allowing compensation would be inequitable. In egregious cases, the personal representative may not only lose their fee but may also be ordered to disgorge any compensation already received. Forfeiture is frequently sought in connection with proceedings for removal of the personal representative, where the same misconduct that justifies removal also justifies the denial of compensation.

In addition to forfeiture, the court may order the personal representative to pay the attorney's fees and costs incurred by beneficiaries who were forced to bring the misconduct to light. This fee-shifting provision serves as an important deterrent against fiduciary abuse and ensures that beneficiaries are not financially penalized for holding the personal representative accountable. Even partial misconduct can result in a reduction of fees proportional to the harm caused to the estate.

Corporate vs. Individual Personal Representative Fees

Florida law permits both individuals and corporate fiduciaries—such as banks and trust companies—to serve as personal representative. The fee structures for these two categories of fiduciaries often differ in practice. Individual personal representatives, typically family members or close friends of the decedent, are entitled to compensation under the same statutory schedule. Many individual personal representatives in smaller estates choose to waive their fee entirely, particularly when they are also beneficiaries of the estate.

Corporate fiduciaries, by contrast, almost always charge fees for their services and typically publish their own fee schedules. A corporate personal representative's fees are still subject to the reasonableness standard of F.S. § 733.617, but they may also be governed by the terms of the decedent's will or a fee agreement entered into before the administration began. Corporate fiduciaries may charge annual fees, transaction-based fees, or percentage-based fees that differ from the statutory schedule. Because corporate fiduciaries bring professional expertise and institutional resources to the administration, their fees may be justified even when they exceed what a family member would charge, provided the services rendered support the amount claimed.

When multiple personal representatives serve jointly, the total compensation payable to all personal representatives combined must still be reasonable. The statutory fee is not multiplied by the number of personal representatives. Instead, the co-personal representatives must divide the total reasonable fee among themselves unless the court determines that additional compensation is warranted because of the increased workload created by the joint administration.

Contact a Florida Probate Attorney About Executor Compensation

Whether you are a personal representative seeking to understand your right to compensation, or a beneficiary who believes the fees being charged against the estate are unreasonable, the Law Offices of Albert Goodwin, PA can help. We have extensive experience with all aspects of personal representative compensation, including fee petitions, objections, extraordinary compensation claims, and forfeiture proceedings.

Call us at 786-522-1411 or email [email protected] to schedule a consultation. Our office is located at 121 Alhambra Plz #1000, Coral Gables, FL 33134. We serve clients throughout Miami-Dade County, Broward County, and Palm Beach County in all matters involving probate administration and estate litigation.