All about Executor Fees in Florida

An executor's fee refers to the compensation an estate executor receives for their services. The estate executor's work is lawfully binding—meaning they have a legal duty to act in the estate's best interest as they handle the probate process and distribute assets to beneficiaries.

The process often requires a lot of paperwork and can be particularly overwhelming for executors who are simultaneously mourning the loss of the loved one. As such, they’re eligible to receive compensation that’s paid out of the estate.

How much does an executor get paid in Florida?

If the testator has not specified the estate executor's fee in their will, the state of Florida has stipulations on the amount estate executors can receive.

In Florida, the executor fees are determined by the size of the estate, and the fee is paid out by the estate.

According to Florida statue 733.617 the executor fee rates are as follows:

- 3% for the $1,000,000 dollars

- 2.5% for the next $4,000,000 dollars

- 2% for the subsequent $5,000,000 dollars

- 1.5% on anything more than $5,000,000 dollars

For Example:

You're an executor of an estate worth $750,000.

0.03 x 750,000 = $22,500.

For fulfilling your fiduciary duties as an executor of an estate worth $750,000 you are entitled to a compensation of $22,500.

Another Example:

You're an executor of an estate worth $5,500,000

Estate Value: $5,500,000

First 1,000,000: .03 x 1,000,000 = $30,000

Estate Value: $4,500,000

2.5% on the next $4,000,000: 0.025 = $100,000

Estate Value: $500,000

2% on the Subsequent $5,000,000: $10,000

For administering an estate worth $5,500,000 in Florida, you are entitled to receive an executors fee of $140,000.

However, a testator can establish any amount as compensation in their will. The estate executor can also decline compensation—this usually happens when the executor is also a beneficiary to the estate.

When Should Executor Fees Be Waived?

There are instances when the estate executor may choose to waive their fees. For example, when the executor is the only beneficiary of the estate, they can forgo the fees. Some executors turn down the payment because they fear judgment from other beneficiaries, or because they may face conflicts of interest if they’re also a beneficiary.

The law's intervention on executor fees is a guideline to ensure the person gets value for services rendered. Nevertheless, the person has a right to turn down the payment.

It is not easy settling the estate of the deceased. The task comes with a lot of responsibilities. If you want to know more about the responsibilities of an estate executor, you can contact us for a free consultation and find out how we can help you navigate this process.