A deceased person’s court-appointed Personal Representative manages the administration of his estate from start to finish. To ensure that his activities are in complete compliance with Florida probate law, it is advisable for the PR to hire a licensed FL attorney to help him through the process. Among other things, the attorney can help the PR to complete all necessary paperwork, schedule any hearings, etc., and assist with whatever additional legal issues may arise in the course of administration. The attorney can also notify the decedent’s potential creditors of the administration of his estate and, if applicable, discharge his debts prior to the distribution of his assets to his beneficiaries. As such, the Personal Representative will be protected against personal liability for the decedent’s debts, even if claims are raised after administration.
The PR is compensated for the time, effort and money he expends to administer the decedent’s estate before the decedent’s debts (including back taxes) are paid and before his assets are distributed to his beneficiaries. If he hires an attorney, accountant or other professional to help with the process, he is entitled to full reimbursement for these fees, so long as they are reasonable.
The PR’s compensation is usually determined in one of five ways: (1) as set forth in the decedent’s Will, (2) as set forth in a contract between the PR and the decedent, (3) as reasonably agreed among the Personal Representative and the decedent’s heirs or beneficiaries, (4) as determined by the judge, or (5) as may be presumed to be reasonable under FL law. FL Statute 733.617 provides general guidelines for the reasonableness of the PR’s compensation. According to 733.617, if the decedent’s estate is worth less than $1 million, the PR should be paid at the rate of 3 percent of the total value of the estate. If the decedent’s estate is worth more than $1 million but less than $5 million, the Personal Representative should be paid at the rate of 2.5 percent of the total value of the estate. If the decedent’s estate is worth more than $5 million but less than $10 million, the PR should be paid at the rate of 2 percent of the total value of the estate. If the decedent’s estate is worth more than $10 million, the PR should be paid at the rate of 1.5 percent of the total value of the estate.