How Tennessee executor compensation actually works
Tennessee is a "reasonable compensation" state with no formula — and its courts have gone further than most and explicitly rejected treating even local percentage guidelines as binding.
1. "Reasonable compensation," decided case by case
T.C.A. § 30-2-606: the clerk "shall credit the accounting party with a reasonable compensation for services." No percentage, no schedule is written into the statute. T.C.A. § 30-2-317 separately lists "reasonable compensation to the personal representative" as a first-priority cost of administration, ranking it ahead of most other claims against the estate.
2. Tennessee courts have rejected binding percentage rules
In re Estate of Young, 2016 WL 369587 (Tenn. Ct. App.): the Court of Appeals held that rules requiring fees to be set by a "fixed criterion, such as a percentage of the estate," are antithetical to the requirement that compensation be determined case by case. Some county probate courts have adopted informal local guidelines (Shelby County, for example, has referenced a tiered range around 1-2% of the first $100,000 and 0.5-1% of the next $900,000) — but per Young, these are reference points, not binding rules, and a court can depart from them.
3. The factors that actually matter
In re Estate of Schorn, 2015 WL 1778292 (Tenn. Ct. App.); Perlberg v. Jahn, 773 S.W.2d 925 (Tenn. Ct. App. 1989): Tennessee courts weigh the time and effort involved, the complexity and difficulty of the estate, the promptness and adequacy of the personal representative's work, the results achieved, and the extent of the responsibility assumed. The determination is left to the trial court's discretion "in light of all the relevant circumstances."
4. You generally have to ask for it
Unlike a state where compensation is simply taken from estate funds, Tennessee personal representatives typically must file a petition with the probate court requesting payment, with the court then approving (or adjusting) the requested amount based on the work actually performed.
5. Extraordinary services can justify more
Tasks like overseeing the sale of real estate, running a business, handling litigation, or managing a tax audit are commonly treated as "extraordinary" and can support additional compensation beyond what routine administration would justify.
| Component | Tennessee figure | Source |
|---|---|---|
| Statutory formula | None — "reasonable compensation" only | T.C.A. § 30-2-606 |
| Priority in estate claims | First priority, as an administration cost | T.C.A. § 30-2-317 |
| Local percentage guidelines binding? | No — reference only | In re Estate of Young (2016) |
| Court petition required? | Yes, in practice | General Tennessee probate practice |
| Commonly cited practice range | ~2-5% of estate value (not statutory) | Secondary sources; not law |