Arkansas Executor Fees: How Personal Representative Compensation Is Calculated

Most people who serve as executor of an Arkansas estate do not know they are entitled to compensation until someone mentions it. And most of those who do know about the fee assume it is calculated on the total estate value. Both assumptions lead to either leaving money on the table or misunderstanding what you can rightfully collect.

Arkansas law establishes a specific tiered formula for executor compensation — and a separate, less obvious provision that governs work involving real estate.

The Statutory Fee Schedule

Under Arkansas Code § 28-48-108, the personal representative (the legal term for executor or administrator) is entitled to compensation based on the value of the personal property that passes through their hands during administration. The tiered formula is:

• 10% of the first $1,000
• 5% of the next $4,000
• 3% of the remaining balance

This means the formula is not a flat percentage. It is a stepped calculation applied sequentially.

Example Calculation

For an estate with $80,000 in personal property (bank accounts, investment accounts, vehicles, personal belongings):

For a $250,000 personal property estate, the calculation yields:

The fee is capped — meaning the court will not approve compensation exceeding these amounts unless the executor petitions for additional reasonable compensation for extraordinary services.

The Real Estate Exclusion: A Critical Carve-Out

Here is what catches most Arkansas executors off guard: real estate is not personal property for purposes of this fee calculation. The statutory formula applies only to personal property passing through the executor's hands. It does not include the value of real estate the executor manages, markets, repairs, negotiates, or sells.

If the bulk of the estate is a family home worth $300,000, the standard formula generates almost nothing based on that value. The executor who spent months coordinating repairs, working with a real estate agent, managing showings, negotiating with buyers, and handling the closing would receive $0 in compensation for all of that work under the standard formula — unless they separately petition the court.

To receive compensation for real estate work, you must petition the court for "reasonable compensation." The petition must document the specific services rendered related to the real property — the nature of the work, the time involved, and the value it added to the estate. The court evaluates the petition and authorizes a separate fee for the real estate work, distinct from the personal property fee schedule.

This requires knowing to ask. Many executors who perform significant real estate administration simply do not realize they are entitled to additional compensation and never petition for it.

Attorney Fees: A Separate Schedule

The estate's attorney — if you hire one — is also compensated according to a statutory schedule, but one calculated on the total estate value (real and personal property), not just personal property:

• 5% of the first $5,000
• 4% of the next $20,000
• 3% of the next $75,000
• 2.75% of the next $300,000
• 2.5% of the next $600,000
• 2% of any balance exceeding $1,000,000

For a $400,000 estate (real and personal combined), the statutory attorney fee comes to:

• $250 (5% of $5,000)
• $800 (4% of $20,000)
• $2,250 (3% of $75,000)
• $8,250 (2.75% of $300,000)
• Total: $11,550

The attorney fee schedule is a maximum, not a guaranteed minimum. The court retains authority to adjust fees up or down based on the actual complexity of services. An attorney who handled a straightforward, uncontested estate and billed the statutory maximum may have that fee challenged if the complexity does not justify it.

Knowing this schedule matters not only if you are hiring an attorney — it also matters if you are evaluating whether an attorney's quoted retainer is reasonable. A quote that significantly exceeds the statutory schedule on a simple estate warrants a conversation.

Executor Fees Are Taxable Income

Unlike an inheritance, executor fees are compensation for services rendered and are taxable as ordinary income to the recipient. If you are named both as executor and as a beneficiary, you can choose to waive your executor fee — forgoing the taxable income — and instead receive your inheritance, which is generally not taxable income at the federal level (though estate tax rules may apply for large estates).

For most Arkansas estates, executor fees are modest enough that this choice is straightforward. For large estates where the fee is substantial, the decision is worth discussing with an accountant before you make it irrevocable.

When the Court Approves Fees

Executor compensation is not self-executing. You do not simply pay yourself from estate funds. The fee must be reported in the Final Accounting (Form 20) and approved by the probate court as part of the estate's administrative expenses before distribution. The circuit clerk publishes notice of the accounting, and heirs have 60 days to object. An objection to your compensation claim means the probate judge rules on the dispute.

Keeping detailed records of everything you do — every call made, every document filed, every hour spent on real estate matters — makes it significantly easier to defend your compensation if a beneficiary challenges it.

What You Cannot Collect If You Missed the Deadlines

One of the statutory consequences of failing to file the estate inventory within 60 days of appointment is the potential forfeiture of executor fees. The court has discretion to withhold compensation from a personal representative who was delinquent in their administrative duties. If you miss the inventory deadline and receive a citation from the circuit clerk, your compensation is genuinely at risk.

The Arkansas Probate Process Guide includes a complete walkthrough of the executor compensation calculation — with the personal property formula, the real estate petition process, and the comparison to statutory attorney fee schedules — as part of the comprehensive administration toolkit designed for Arkansas executors handling estates of all sizes.

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