Quick answer: Alabama caps personal representative compensation at Ala. Code § 43-2-848(a): not more than 2.5% of the value of property received and under the personal representative's control, plus a separate 2.5% of the value of all disbursements — up to 5% total. Unlike a single flat rate, this is two distinct pieces added together. Get an illustrative estimate with the Alabama executor fee calculator.
A two-part cap, not a single flat rate
Ala. Code § 43-2-848(a): compensation "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 another 2.5% of all disbursements. Confirmed independently across multiple sources describing this identical structure: "up to 2.5% of the value of all property received and under their control, plus 2.5% of the value of all disbursements."
A real, detailed multi-factor test
§ 43-2-848(a): the court weighs "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." This is a genuinely detailed list, closer to an attorney-fee reasonableness test than a bare "reasonable compensation" clause.
Prior 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." Genuinely distinctive — most states let a personal representative pay themselves and account for it later; Alabama generally requires approval first.
A real case showing the risk of skipping approval
Alabama Supreme Court, In re Estate of Wehle: the personal representatives paid themselves $1,964,367.82 — roughly 5% of the estate's value — before obtaining court approval. The beneficiaries challenged this under § 43-2-844(7) and sought interest on the funds for the period between payment and approval. The amount was eventually found "reasonable compensation" under § 43-2-848(a) — but the case demonstrates that self-paying before approval creates real, separate legal exposure (like an interest claim), independent of whether the underlying amount holds up as reasonable.
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."
Worked examples
| Property received | 2.5% ceiling |
|---|---|
| $100,000 | $2,500 |
| $500,000 | $12,500 |
| $1,000,000 | $25,000 |
Each figure is 2.5% of the property-received value alone. Add 2.5% of any disbursements to get the full statutory ceiling, and model your own estate in the calculator.
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