How Pennsylvania executor compensation actually works
Pennsylvania's entire statute is a single sentence — everything else is judicial gap-filling, with real tension between trial courts and appellate courts about how far a percentage guideline should govern.
1. The entire statute, in one sentence
20 Pa.C.S. § 3537: "The court shall allow such compensation to the personal representative as shall in the circumstances be reasonable and just, and may calculate such compensation on a graduated percentage." That's the complete statutory text — no dollar figures, no required schedule, no cap.
2. The Johnson Estate benchmark
Johnson Estate, 4 Fid. Rep. 2d 6, 8 (O.C. Del. Co. 1983): a Chester County Orphans' Court opinion that attached an unofficial fee schedule — drawn from a Pennsylvania Attorney General fee schedule used in matters with a charitable interest — which has since become the most commonly cited reference point statewide: 5% of the first $100,000, 4% of the next $100,000, 3% of the next $800,000, 2% of the next $1,000,000, 1.5% of the next $1,000,000, 1% of the next $1,000,000, and 0.5% of the next $1,000,000. It is not law, sets neither a floor nor a ceiling, and judges remain free to award more or less.
3. Appellate courts have pushed back on the percentage approach
Sonovick Estate, 373 Pa. Super. 396 (1988); Preston Estate, 560 A.2d 160 (1989): the Pennsylvania Superior Court has criticized reliance on percentage schedules like Johnson's. In re Williamson's Estate, 368 Pa. 343, 82 A.2d 49 (1951), frames it directly: calculating compensation by percentage is a matter of convenience, but the true test is always the value of the services actually rendered — assessed by "the responsibility incurred and the service and labor performed."
4. A simpler anchor: the 3% rule of thumb
Wallis Estate, 421 Pa. 104, 218 A.2d 732 (1966): the Pennsylvania Supreme Court recognized that a fee of 3% of the estate under administration is "prima facie fair and reasonable" — while stressing this is merely a rule of thumb, not a fixed rule, and that fees can properly run higher or lower depending on what the work actually required.
5. Asset-type variations within the Johnson framework
The Johnson schedule doesn't stop at the value-based brackets above — it also lists different reference rates for specific kinds of assets: around 1% for jointly held accounts, payable-on-death bonds, and trust funds; roughly 3% for real estate sold with a broker's help; about 5% for real estate not converted to cash; and around 1% for real estate passing as a specific devise.
| Tier | Johnson Estate rate |
|---|---|
| First $100,000 | 5% |
| Next $100,000 | 4% |
| Next $800,000 | 3% |
| Next $1,000,000 | 2% |
| Next $1,000,000 | 1.5% |
| Next $1,000,000 | 1% |
| Next $1,000,000 | 0.5% |