When it comes to probate proceedings in the state of Florida, the personal representative has a right to fair compensation. This is a payment for the time and effort required to manage the deceased’s estate.
Determining this compensation can happen in a few ways, either before or during the probate process.
Deceased wishes
The deceased may have specified the personal representative’s compensation in his or her estate plan. Alternatively, before the individual’s passing, he or she and the personal representative can draw up a contractual agreement outlining the payment terms.
Heirs input
The personal representative and the heirs can also create an agreement that determines the compensation structure.
Legal determination
In situations where there is no prior agreement, the determination of compensation falls into the hands of the probate judge or Florida law. Florida law allows for reasonable pay based on a percentage of the estate’s value. This percentage can range from 1.5% to 3%, depending on the total value of the estate.
The percentage-of-value approach ensures that the compensation is proportionate to the complexity and size of the estate. Larger estates may require more time and effort from the personal representative, justifying a higher percentage as compensation. On the other hand, smaller estates may involve less work, warranting a lower percentage.
Any method of determining compensation should be fair. The compensation of a personal representative should consider the actual work it takes to manage the estate. It must acknowledge the personal representative’s efforts without placing an undue burden on the estate.