How the Alabama executor fee actually works
A hard percentage cap, a real multi-factor reasonableness test underneath it, and a genuine legal risk for paying yourself too early.
1. A two-part cap: 2.5% + 2.5%
Ala. Code § 43-2-848(a): a personal representative is entitled to reasonable compensation "which shall not exceed two and one-half percent of the value of all property received and under the possession and control of the personal representative" plus (per the statute's continuation) another 2.5% of the value of all disbursements. On a simple estate, that's up to 5% total — structurally different from a single flat rate.
2. A real multi-factor test underneath the cap
§ 43-2-848(a): reasonableness considers "the novelty and difficulty of the administrative process, the skill requisite to perform the service, the likelihood that the acceptance of the particular employment will preclude other employment, the fee customarily charged in the locality for similar services, the amount involved and the results obtained, the requirements imposed by the circumstances and condition of the estate, the nature and length of the professional relationship with the decedent, the experience, reputation, diligence, and ability of the person performing the services, [and] the liability, financial or otherwise, of the personal representative, or the risk and responsibility involved." A real, detailed list — not just "reasonable" with nothing more said.
3. Court approval before you pay yourself
Ala. Code § 43-2-844(7): "Unless expressly authorized by the will, a personal representative, only after prior approval of court, may... [p]ay compensation of the personal representative." Alabama genuinely requires prior court approval before self-payment, unless the will expressly says otherwise — a real procedural requirement most other states don't have in this form.
4. Beneficiaries can fix the amount by agreement
§ 43-2-848(d): "Nothing in this section shall be construed to limit the right of a decedent or all affected beneficiaries to agree in writing with the personal representative, as to the amount or the method of determining the personal representative's compensation, which shall be binding on all parties if the appointment is accepted and the agreement is not unconscionable."
5. A real case: the risk of paying yourself too early
Alabama Supreme Court, In re Estate of Wehle: personal representatives paid themselves $1,964,367.82 — roughly 5% of the estate — before obtaining court approval. Beneficiaries challenged the payment under § 43-2-844(7) and sought interest on the funds for the period between payment and approval. The circuit court ultimately found the amount itself was "reasonable compensation" under § 43-2-848(a) — but the case shows that self-paying before court approval creates real legal exposure, even when the final amount holds up.
| Component | Alabama figure |
|---|---|
| Property received & controlled | Up to 2.5% |
| Disbursements | Up to 2.5% |
| Self-payment before court approval | Not allowed unless will expressly authorizes it |