Understanding Executor and Trustee Compensation in Florida

Serving as an executor (referred to as a “personal representative” in Florida) or trustee is a labor of love. This role often requires months or even years of careful work. Executors collect and manage assets, pay debts and taxes, deal with lawyers and accountants, file reports with the court or beneficiaries, and ensure that distributions are made correctly. Florida law recognizes that these responsibilities deserve fair compensation. This post explains how executor and trustee fees work under Florida statutes as of August 2025 and provides practical guidance for families and fiduciaries.

The Importance of Compensation for Executors and Trustees

An executor handles a decedent’s probate estate. This includes locating and valuing assets, opening bank accounts in the estate’s name, paying final bills, filing tax returns, defending or prosecuting claims, distributing property to heirs, and closing the estate. A trustee manages assets held in a trust, which may continue for years after the grantor’s death. Trustees must follow the trust’s terms, invest prudently, account to beneficiaries, pay taxes, and sometimes make discretionary decisions about when and how much to distribute.

Both roles are fiduciaries, meaning they must act in the best interests of the beneficiaries. Compensation is not a windfall; it is payment for time, effort, expertise, and risk. Without compensation, many would be unwilling or unable to take on these duties, and estates and trusts might languish.

Florida’s Statutory Scheme for Personal Representative (Executor) Compensation

Florida law sets a presumptively reasonable fee schedule for personal representatives based on the “compensable value” of the estate. This value includes the inventory value of probate assets plus any income earned during administration. Non-probate assets—such as life insurance paid directly to a beneficiary, transfer-on-death accounts, or property held in a living trust—are excluded. The sliding scale is as follows:

• 3% of the first $1 million. For an estate valued at $1 million, the personal representative receives $30,000.

• 2.5% of the value above $1 million up to $5 million. If an estate totals $3 million, the fee is $30,000 (3% on the first $1 million) plus $50,000 (2.5% on the next $2 million), for a total of $80,000.

• 2% of the value above $5 million up to $10 million. A $7 million estate yields $30,000 (3% of the first $1 million) + $100,000 (2.5% of the $4 million portion from $1 million to $5 million) + $40,000 (2% of the $2 million portion from $5 million to $7 million), totaling $170,000.

• 1.5% of the value over $10 million. Estates above $10 million use the same calculation plus 1.5% of amounts over $10 million.

  
  

This commission is presumed reasonable for ordinary services, but it is not mandatory. If a will specifies a different compensation structure (other than simply referencing the statute or using generic language like “commissions allowed by law”), that provision controls. A personal representative may renounce a stated fee and elect statutory compensation instead. Conversely, if the statutory fee is too low or too high for the particular estate, the personal representative or an interested party may petition the court for adjustment. Courts consider factors such as promptness and skill, complexity of the estate, risk assumed, results achieved, and the time and resources expended.

Extraordinary Services and Additional Fees

Florida recognizes that estate administrations vary widely. Personal representatives may request additional compensation for extraordinary services, including:

• Selling real estate or closely held business interests.

• Handling litigation, whether defending the estate against claims or suing to recover assets.

• Preparing or resolving tax issues, including audits and negotiations with tax authorities.

• Continuing the decedent’s business operations.

• Dealing with protected homestead property.

• Any other tasks outside the ordinary scope of administration.

  
  

These fees are not automatic. They should reflect the amount of extra work and benefit to the estate and generally require agreement of the beneficiaries or court approval.

Co-Personal Representatives and Attorney Conflicts

If an estate is worth at least $100,000 and there are two personal representatives, each may receive a full commission as if serving alone. When there are more than two, the commission is shared: one full commission goes to the personal representative who primarily administers the assets, and the other commission is divided among the remaining co-personal representatives according to the work performed.

Florida law also addresses situations where an attorney drafts a will naming themselves or someone close to them as personal representative. In such cases, the attorney (or related person) must provide specific disclosures about compensation and alternatives before the will is executed. The testator must sign a separate acknowledgment of these disclosures. Without these steps, the attorney or their relative is not entitled to receive fees for serving as personal representative (although they may still be paid for legal services) unless they are related to the testator.

Trustee Compensation Under Florida Law

Unlike personal representative fees, trustee compensation is not tied to a statutory schedule. Florida’s Trust Code states that a trustee is entitled to “reasonable compensation under the circumstances.” If a trust document specifies compensation—such as a flat amount, hourly rate, or percentage of assets—the trustee is entitled to that fee. However, a court can adjust the amount if the duties end up being significantly different from those contemplated when the trust was created or if the fee is unreasonably low or high.

When a trust is silent on compensation, trustees and beneficiaries often look to customary practices. Many professional trustees (such as banks and trust companies) charge annual fees based on a percentage of the assets under management. Rates commonly range from about 1% to 3% per year, with larger trusts often qualifying for lower percentages. For instance, a corporate trustee might charge 1.0% on the first $1 million of assets, 0.75% on the next $2 million, and 0.5% on amounts over $3 million, subject to minimum annual fees. Individual trustees may charge an hourly rate or negotiate a flat or annual fee based on the expected workload and complexity.

Factors for Determining Reasonable Trustee Fees

Courts look at several factors when asked to approve or review trustee compensation:

• Size and complexity of the trust. Larger trusts and those that hold businesses, commercial real estate, or complex investments typically require more work.

• Income received and disbursed. The volume of transactions and distributions can indicate effort.

• Customary fees. Rates charged by corporate fiduciaries in the community serve as benchmarks.

• Trustee’s skill and experience. An attorney or CPA may justify a higher rate than a layperson because of specialized knowledge.

• Time spent. Trustees should keep detailed records of meetings, correspondence, and actions taken on behalf of the trust.

• Risk and responsibility. Trustees assume personal liability for mistakes; this risk justifies compensation.

• Results achieved. Successful preservation or growth of the trust may support a higher fee.

  
  

Trust documents can also provide guidance. Many specify that a trustee is entitled to a “published fee schedule” or a set percentage of assets. Some require trustee fees to be approved by trust protectors or committees. Regardless of the method, transparency and documentation are key—trustees should inform beneficiaries about how and when they intend to take fees and provide detailed accountings showing how the fees were calculated.

Attorneys as Trustees

Florida law imposes special disclosure rules when an attorney prepares or supervises the execution of a trust and is appointed as trustee (or appoints a person related to them). Similar to the personal representative rules, the attorney must provide written disclosures that anyone—including family members, friends, and corporate fiduciaries—can serve as trustee and that trustees are entitled to reasonable compensation separate from attorney fees. The settlor must sign a separate acknowledgment of these disclosures for the attorney to receive trustee fees. This rule applies to trusts executed or amended on or after October 1, 2020. If no acknowledgment is executed, the attorney can still serve but may not charge a trustee fee.

Practical Considerations for Fiduciary Compensation

Keep Detailed Records

Personal representatives and trustees should maintain accurate time logs and expense reports. Courts and beneficiaries often want to see how many hours were spent on various tasks and the complexity of those tasks. Documentation supports the reasonableness of the fee and can prevent disputes.

Communicate with Beneficiaries

Open communication can prevent misunderstandings. Provide beneficiaries with an outline of expected duties, the fee structure (whether statutory or negotiated), and the timing of payments. For trustees, annual or quarterly accountings should disclose fees taken during the period. If beneficiaries object, try to resolve concerns informally or with mediation before seeking court intervention.

Understand Tax Consequences

Executor and trustee fees are treated as taxable income to the person receiving them. If you are serving as a fiduciary, consult a tax advisor about how to report your compensation and whether it is subject to self-employment tax. In contrast, reimbursements for out-of-pocket expenses (such as postage, travel, or supplies) are not taxable income. Estates and trusts may deduct fiduciary fees as administrative expenses on fiduciary income tax returns, which can reduce overall taxes.

Consider Waiving or Reducing Fees

In small estates or trusts, fiduciaries who are also beneficiaries sometimes waive fees to preserve assets or avoid self-employment tax. However, waiving compensation may not always be wise. Acting as a fiduciary exposes you to liability and takes significant time; fees compensate you for this risk. If you do waive fees, document your decision in writing and confirm that other beneficiaries understand and agree.

Review Governing Documents and Update Them

Trustors and testators can avoid uncertainty by specifying compensation in wills and trusts. For example, a will might state that the personal representative will receive statutory compensation, or a trust might stipulate a flat fee or require the trustee to adhere to a published fee schedule. If existing documents are silent or ambiguous, consult an attorney to amend them. Periodic review is especially important in light of changing laws and family circumstances.

Looking Ahead: 2025 and Beyond

As of August 2025, Florida’s statutory provisions for personal representative compensation and trustee compensation remain intact. No significant legislative amendments have been enacted to change the percentages for executor commissions or the disclosure requirements for attorney fiduciaries. The most notable recent change was the 2020 law requiring additional disclosures for attorneys serving as trustees or personal representatives. While nationwide tax reform in 2025—the One Big Beautiful Bill Act—raised federal estate and gift tax exemptions to $15 million per person effective in 2026, those federal changes do not directly impact fiduciary compensation rules.

Nevertheless, compensation practices evolve as courts interpret statutes and as the complexity of estates and trusts increases. Families with large estates, digital assets, closely held businesses, or blended family situations should consult qualified counsel to draft clear compensation clauses and anticipate potential conflicts. Individuals who agree to serve as personal representative or trustee should ensure they understand their duties, how they will be compensated, and how to protect themselves from liability.

Conclusion

In Florida, executor and trustee compensation has structure. Florida provides a clear statutory framework for compensating personal representatives and flexible guidelines for compensating trustees. As of 2025, executors may rely on the sliding scale of percentages provided by statute, with the option to request more or less based on the work required. Trustees are entitled to reasonable fees consistent with the trust instrument and community standards, with courts able to adjust fees when necessary. Proper planning—drafting thoughtful will and trust provisions, maintaining detailed records, communicating with beneficiaries, and consulting professionals—ensures that fiduciaries are fairly compensated and that estates and trusts are administered efficiently. By understanding the rules and expectations, families can avoid conflicts and ensure that those who do the work of estate and trust administration are treated fairly.