Although many executors of wills manage the administration of the deceased person’s (decedent’s) estate without compensation, a person who makes a will (testator) may provide for compensation of the executor in the will. And many states have laws (statutes) that provide a formula for calculating the compensation of an executor. These laws vary from state to state and are often located in the estates code, probate code, or similarly-named code.
In Michigan, the compensation of an executor, also known as a personal representative, is governed by the Estates and Protected Individuals Code (EPIC). While the testator can specify the compensation for the executor in the will, if the will does not mention compensation or the executor is unsatisfied with the provided amount, Michigan law allows for 'reasonable compensation.' This is not a fixed formula but is determined based on the size and complexity of the estate, the time and labor required, the skill needed, the fiduciary's experience and capabilities, and other factors. The court can also be petitioned to review and adjust the compensation if necessary. It is common for attorneys to assist in these matters to ensure that the compensation is fair and within the legal guidelines.