The responsibilities of an executor can be challenging. One has to locate the will, identify beneficiaries, communicate with them effectively, gather assets and so on.
Sometimes, it is only reasonable that they are compensated for their role, whether they are a loved one of the testator (the person who made the will) or a professional personal representative.
So, how are personal representatives compensated in Florida? The will can provide for compensation through specific terms. Otherwise:
They are entitled to a commission based on estate value
An estate’s value determines the commission a personal representative is entitled to. A commission is presumed to be reasonable if it’s at the rate of 3% for the first $1 million, 2.5% for all estates valued above $1 million and not exceeding $5 million, 2% for all above $5 million and not exceeding $10 million and 1.5 % for all above $10 million.
Note that assets passed to beneficiaries without going through probate may not be included in these calculations.
They are entitled to additional compensation for extraordinary service
Besides executing an estate, personal representatives perform other duties. For example, they may need to sell a property if the will specifies so or the court authorizes it.
They may also need to go through litigation if a beneficiary or an interested party contests the will, or they may challenge the will themselves. Accordingly, they will need to find professionals and gather evidence to fight on behalf of or against the estates, which can take time and add more responsibilities to their plate. A personal representative should receive further compensation as is reasonable for additional services.
If you are a personal representative, consider legal guidance to understand your compensation in-depth.