Founding Attorney
Have you ever been asked to serve as the Personal Representative (commonly referred to as an executor) of someone’s estate? You may wonder: Is this a volunteer role, or do you get compensated for the time and effort involved?
The truth is, acting as a Personal Representative is a significant responsibility. You may be tasked with everything from paying debts and filing taxes to distributing property according to the will. Minnesota law recognizes that this work takes time, and it allows Personal Representatives to be paid for their services.
Minnesota Law on Personal Representative Compensation
Under Minnesota probate law, a Personal Representative “is entitled to reasonable compensation for services.” But what does reasonable really mean? Unlike some states, Minnesota does not use a percentage-based formula tied to the value of the estate. Instead, the amount depends on:
- The size and complexity of the estate
- The time and effort required
- The level of responsibility assumed
- Whether disputes or court hearings are involved
Because “reasonable” is not clearly defined, the probate court has the final say if disagreements arise. In practice, courts look at the work performed and whether the payment seems fair given the circumstances.
Can a Will Set the Fee?
Yes. A person creating a will can state how much the Personal Representative should be paid. For example, a will may include a provision that says, “My sister will receive $5,000 for serving as Personal Representative of my estate.” This type of clear direction can prevent conflict later.
However, if the fee stated in the will seems too low or too high compared to the work involved, the court may still review it to ensure fairness. Further, the Personal Representative may reject the fee and seek different compensation.
Reimbursement vs. Compensation
It’s important to distinguish between payment for your role and reimbursement of expenses:
- Compensation: Payment for the time and effort you put into handling the estate.
- Reimbursement: Repayment for money you spend on behalf of the estate, such as:
- Court filing fees
- Attorney’s fees
- Funeral expenses
- Property maintenance costs
Every Personal Representative is entitled to be reimbursed for out-of-pocket costs, even if they choose not to accept compensation for their services.
When Conflicts Arise
Sometimes beneficiaries disagree about whether the Personal Representative should be paid, or how much is appropriate. These disputes can delay the probate process and strain family relationships. Having a clear plan in the will can reduce the likelihood of conflict.
If no agreement can be reached, the probate court will review the work done and set the amount of compensation.
Why Payment Matters
Serving as a Personal Representative can take months or even years, depending on the complexity of the estate. You may have to:
- Gather and value assets
- Pay debts and taxes
- Communicate with heirs and creditors
- File legal paperwork with the court
The law recognizes this as a significant responsibility and allows you to be compensated fairly for your effort.
Talk With a Minnesota Probate Attorney
Whether you are drafting a will and want to set executor compensation, or you are currently serving as a Personal Representative and want to know your rights, guidance from an experienced probate attorney can make the process easier.
At Unique Estate Law, we work with families across Minnesota to ensure that estates are administered smoothly and fairly. We will help you understand how compensation works, make sure you are reimbursed for costs, and protect you from disputes that may arise.
Call Unique Estate Law today to schedule a consultation and learn how we can help you handle your duties with confidence.