The personal representative is responsible for managing the estate assets, paying and settling claims and disputes and distributing assets to beneficiaries. A personal representative of a Miami estate is entitled to commissions or fees for services rendered to the estate as long as the compensation is deemed reasonable. In addition, a personal representative is also allowed reimbursement for any out of pocket expenses paid on behalf of the estate and for special services rendered. Beneficiaries have the power to ask the Miami-Dade Probate Court to review the fees. Fees are also subject to Court approval.
The following amounts are allowed under Florida law for personal representatives:
• 3% for the first $1million and under.
• 2.5% for any additional assets valued between $2-$5 million
• 2% for any additional assets valued between $5-$10 million
• 1.5% for the remainder of an estate valued at over $10 million
Two personal representatives/executors each receive their full amount. When there are more than two representatives and the estate’s value is $100,000 or more, then the compensation that two personal representatives would receive is apportioned among the total number of representatives.
A personal representative who is also a member of the Florida Bar may receive both the personal representative commission fee and fee for performing legal services as prescribed under the Florida probate statutes.
Additional compensation may be payable to the personal representative for services in connection with the sale of estate personal or real property, conducting litigation on behalf of the estate or for services in connection with defending a claim against the estate, for managing and conducting the decedent’s business or dealing with other special matters that may be necessary.
Deciding Whether to Take Personal Representative Compensation/Fees
Since a personal representative fee is taxable, a decision to take a personal representative commission should be discussed ahead of time with your accountant or financial representative. Some people who are also a beneficiary of a Miami decedent’s estate waive any executor or personal representative fees because inheritances are not subject to income taxes.
Miami Probate and Estate Attorney Assistance
Do not use this article in calculating the actual commission for a personal representative. Consult an attorney and have them look at the statute and caselaw.
If you are a personal representative of a Miami estate and have questions about compensation or other estate matters, a Miami probate and estate attorney can assist you. If you wish to speak to a Miami estate attorney, call me at (786) 522-1411.