Executor Compensation and Fees (AL)

If the will does not specify how executor compensation should be calculated, AL estates must follow state compensation rules (see AL calculator below).

In Alabama, the estate executor is known as a "personal representative".

Executors for Alabama estates are entitled to reasonable compensation of up to 2.5% of assets received, and 2.5% of disbursements. Funds which pass directly to named beneficiaries, such as life insurance policies or 401Ks, are not included in these calculations.

Factors to consider include:

  • Novelty and difficulty of the administrative process
  • Compensation customarily charged in the community for similar services
  • Size of the estate and the results obtained
  • Experience and capabilities of the person

For example, an Alabama estate with a gross value of $100K at the time of death, and with $90K of disbursements, would generate at most $4,750 in executor fees.

The court can also allow additional compensation for extraordinary services, such as overseeing the sale of real estate, running a business, conducting litigation, preparing tax returns yourself, handling tax audits, and so on.

Note:

  • The executor can renounce the compensation specified in the will and be entitled to reasonable compensation as defined above, provided there is no contract with the decedent, and that no alternate personal representative is willing to serve for the compensation provided in the will.
  • Alternately, compensation can be set to any amount, provided all heirs agree, and the amount is not "unconscionable".

See Alabama Code §43-2-848.

AL Compensation Calculator

EstateExec provides the following executor compensation estimator for AL estates, but please keep in mind that circumstances may vary, and that there may be special situations addressed by local custom or law. By using this estimator, you acknowledge that EstateExec provides any results as informational input only, not as legal advice, and cannot be held responsible for any inaccuracies for, or misunderstandings about, any given estate.

You can use this calculator now, but if you use EstateExec to help you track the settlement process, it will automatically perform the sometimes complex calculations to provide inputs for the fields below (you can create an estate for free).

N/A
N/A
Compensation:  $ -

See also Compensation for general remarks on executor compensation.

Copyright © 2014-22 EstateExec