Executor Fees in Pennsylvania: What You're Entitled to Charge

Settling a parent's or spouse's estate in Pennsylvania is real work — tracking down accounts, filing paperwork, advertising to creditors, negotiating with the Department of Human Services, and keeping a dozen statutory deadlines from slipping. The question most new executors never think to ask until months in: can I actually be paid for this?

The answer is yes. Pennsylvania law gives executors the right to "reasonable and just" compensation. But unlike many other states, there is no statute that sets a specific percentage. Instead, the benchmark comes from a 1983 court decision, and it still governs almost every executor fee dispute filed in the Orphans' Court today.

The Johnson Estate Fee Schedule

The controlling standard for executor compensation in Pennsylvania comes from In re Johnson Estate, a Delaware County Orphans' Court case decided in 1983. Although it is technically a judicial guideline rather than a statute, both the Orphans' Court and the Pennsylvania Department of Revenue treat the Johnson Estate schedule as the presumptive measure of a reasonable fee.

The schedule uses a tiered, declining percentage applied to the gross value of the general probate assets — the assets that actually pass through the Register of Wills, not joint accounts or life insurance paid directly to named beneficiaries.

To calculate the fee, you apply each tier in sequence. For an estate with $250,000 in general probate assets: 5% of the first $100,000 is $5,000; 4% of the next $100,000 is $4,000; 3% of the remaining $50,000 is $1,500 — total baseline commission of $10,500.

Additional Allowances for Non-Standard Assets

The Johnson schedule isn't limited to general probate assets. The Orphans' Court has also endorsed specific percentage allowances for other asset categories that require executor involvement but pass outside the formal probate estate:

• 1% on joint accounts, payable-on-death (POD) accounts, transfer-on-death (TOD) bonds, certain trust funds, and real estate that the will specifically devises to a named beneficiary
• 3% on real estate that the executor must manage and sell with the assistance of a real estate broker
• 5% on real estate that the executor sells without a broker

These additional percentages reflect the genuine administrative burden of marshaling and liquidating those assets, even if they technically pass outside the probate inventory.

When the Fee Can Be Reduced — or Taken Away Entirely

The Johnson schedule establishes a baseline, not a guaranteed payout. The Orphans' Court has clear authority to reduce the fee — or eliminate it entirely — if the executor failed to manage the estate competently.

Pennsylvania courts use the term "supine negligence" for the level of carelessness that results in a fee being stripped. If an executor distributed assets to beneficiaries before the one-year creditor period expired and an unpaid creditor then made a valid claim, or if the executor paid debts in the wrong statutory order and exposed the estate to liability, the court may reduce the commission proportionally to the harm caused.

The fee also becomes a deductible expense on the Pennsylvania Inheritance Tax Return (REV-1500), which means it reduces the taxable value of the estate — a real financial incentive for beneficiaries to agree to a reasonable commission rather than fighting it.

For straightforward estates where the executor is also a primary beneficiary, many executors choose to waive the fee to simplify the accounting. The decision has tax implications either way: a fee waived is not income to the executor, but a fee received is ordinary income and must be reported on the executor's personal tax return.

Core Executor Duties in Pennsylvania

Understanding what you're being paid for matters as much as the amount. Pennsylvania executors operate under a strict fiduciary duty — the legal obligation to act with care, loyalty, and impartiality toward all beneficiaries.

Securing and inventorying assets. The first task after receiving Letters Testamentary or Letters of Administration from the Register of Wills is to identify and physically secure the estate's assets. This means changing locks on real property, notifying financial institutions, and preventing anyone — including family members — from removing personal property before a formal inventory is completed. The estate inventory (Form RW-09) must be filed with the Register of Wills within nine months of the date of death.

Opening a dedicated estate account. All estate funds must be channeled through a separate estate bank account opened with an Employer Identification Number (EIN) obtained from the IRS. Commingling estate funds with personal funds is a breach of fiduciary duty.

Notifying heirs and creditors. Within three months of receiving letters, the executor must send formal Notice of Estate Administration (Form RW-07) to all named beneficiaries and intestate heirs. Simultaneously, the executor must advertise the estate's opening in a local newspaper and the county's designated legal journal for three consecutive weeks, starting the clock on the one-year creditor claim period.

Notifying DHS. If the decedent was 55 or older at death, the executor is legally required to notify the Pennsylvania Department of Human Services Estate Recovery Program by certified mail. Once DHS receives a complete notice — including the decedent's Social Security number, date of birth, date of death, and an estimated estate value — it has 45 days to file a formal Statement of Claim. Miss a required data element, and DHS can suspend that clock indefinitely.

Paying debts in statutory order. Before distributing anything to heirs, the executor must pay outstanding debts in the priority sequence set by 20 Pa.C.S. § 3392: administrative costs first, then the $3,500 family exemption, then funeral and final medical expenses, then DHS Medicaid recovery claims, then general creditors. Paying out of order creates personal liability for the executor.

Filing the inheritance tax return. The Pennsylvania Inheritance Tax Return (REV-1500) must be filed within nine months of death. Paying the estimated tax within three months locks in a 5% discount on the total liability — a significant saving for any beneficiary who isn't a surviving spouse.

Closing the estate. Once taxes are paid, creditors have been satisfied, and the one-year claim period has passed, the executor closes the estate either through a Family Settlement Agreement — a private contract signed by all beneficiaries releasing the executor from liability — or through a formal First and Final Accounting filed with the Orphans' Court.

Practical Considerations Before You Begin

Document everything from day one. The Orphans' Court evaluates fees based not just on the schedule, but on whether the work was performed correctly and efficiently. Detailed time records, organized asset schedules, and a clear written accounting protect the fee and protect against accusations of mismanagement.

If beneficiaries are cooperative and the estate is straightforward, the Family Settlement Agreement route keeps the compensation discussion private and avoids court fees. If there is any hostility among heirs, or if anyone is likely to demand a line-by-line accounting, retain a probate attorney before the dispute escalates — the cost of early legal advice is almost always less than the cost of contested litigation in Orphans' Court.

The Pennsylvania Probate Process Guide walks through every stage of estate administration — from the initial petition at the Register of Wills through closing the estate and distributing assets — with the forms, deadlines, and checklists Pennsylvania executors need in one place.

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