Executor Compensation
This page explains how compensation for a Personal Representative is calculated in California probate and why it often causes confusion. This information is provided for educational purposes and does not constitute legal advice.
When a family member passes away, someone must step forward to manage the estate. That person is called the Personal Representative, also known as the executor or administrator. Many families do not realize that California law provides statutory compensation for this role.
Understanding how that compensation works reduces suspicion and unnecessary conflict.
Is a Personal Representative Paid in California?
Yes.
Under the California Probate Code, a Personal Representative is entitled to statutory compensation unless they choose to waive it.
This compensation is not arbitrary. It is calculated using a formula based on the estate’s value.
The same statutory formula generally applies to the probate attorney as well.
How Is Executor Compensation Calculated?
Compensation is based on the gross value of the probate estate, not the net value after debts.
The statutory fee schedule is:
• 4 percent of the first $100,000.
• 3 percent of the next $100,000.
• 2 percent of the next $800,000.
• 1 percent of the next $9,000,000.
• 0.5 percent of the next $15,000,000.
• For amounts above that, the court determines reasonable compensation.
• 3 percent of the next $100,000.
• 2 percent of the next $800,000.
• 1 percent of the next $9,000,000.
• 0.5 percent of the next $15,000,000.
• For amounts above that, the court determines reasonable compensation.
The calculation is based on the inventory value of assets as appraised for probate.
This often surprises families.
What Assets Count Toward Compensation?
Compensation is calculated on probate assets that pass through the court process.
These may include:
• Real estate held in the decedent’s name alone.
• Bank accounts without named beneficiaries.
• Investment accounts without transfer-on-death designations.
• Business interests.
• Personal property of significant value.
• Farm equipment, vehicles, or other titled assets in the decedent’s name.
• Stock portfolios and brokerage accounts without designated beneficiaries.
• Bank accounts without named beneficiaries.
• Investment accounts without transfer-on-death designations.
• Business interests.
• Personal property of significant value.
• Farm equipment, vehicles, or other titled assets in the decedent’s name.
• Stock portfolios and brokerage accounts without designated beneficiaries.
The key factor is the asset’s title at the time of death.
Assets that pass automatically outside of probate generally do not count toward statutory compensation.
These may include:
• Joint tenancy property with right of survivorship.
• Retirement accounts with named beneficiaries.
• Life insurance with designated beneficiaries.
• Trust-held property.
• Retirement accounts with named beneficiaries.
• Life insurance with designated beneficiaries.
• Trust-held property.
Proper classification matters. The probate attorney determines what is included in the estate inventory.
Does Real Estate Count?
Yes.
If real property is titled solely in the decedent’s name and must pass through probate, its appraised value is included in the statutory fee calculation.
This can significantly affect total compensation.
In areas where property values are high, the statutory percentage can result in substantial fees.
Understanding this early often explains why families disagree about who should serve as Personal Representative.
Does the Attorney Receive the Same Percentage?
In most standard probate cases, yes. The attorney’s statutory fee is calculated using the same percentage schedule applied to the estate value. However, additional extraordinary services may be compensated separately if approved by the court.
This structure is established by statute, not negotiated in most routine cases.
Can the Personal Representative Waive Compensation?
Yes.
Some Personal Representatives choose to waive their fee, especially when:
• They are the sole beneficiary.
• The estate is modest.
• The family prefers simplicity.
• Tax planning considerations apply.
• The estate is modest.
• The family prefers simplicity.
• Tax planning considerations apply.
Others choose to receive compensation because the role requires substantial time and responsibility.
The decision is personal and should be made after consulting legal and tax advisors.
Why Do Families Fight Over This?
In many probate disputes, the issue is not emotional. It is financial.
The statutory fee can be meaningful.
When families do not understand how compensation works, suspicion develops.
Clear information reduces unnecessary conflict.
The role of Personal Representative carries fiduciary duties, record-keeping responsibilities, and potential liability. Compensation exists because the responsibility is real.
Practical Perspective
The purpose of compensation is not to create division. It exists to acknowledge responsibility and protect the person serving. When everyone understands how the formula works, discussions become calmer and more practical.
Probate is procedural. Compensation is structured. Clarity reduces conflict.
If you are navigating probate real estate in California and would like to understand how the compensation structure may affect timing, cooperation, or property decisions, you are welcome to schedule a structured conversation.