Understanding Florida Probate Compensation for Attorney & PR

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July 18, 2023

Navigating the Florida probate process can be intricate due to the range of laws and regulations that dictate proceedings. Three crucial statutes you should familiarize yourself with are 733.707(1)(a), 733.106(3), and 733.6171. Understanding these statutes is vital, as they provide clarity on the costs of administration and how the attorney is compensated for their services.

Section 733.707(1)(a): Priority of Claims

Florida probate statute 733.707(1)(a) pertains to the payment of claims against the estate. It outlines the order of priority in which claims must be settled, starting with costs and expenses of administration. This priority list is intended to ensure that the most crucial expenses, like those involved in managing and administering the estate, are paid first.

Section 733.106(3): Costs of Administration

Moving on to 733.106(3), In all probate proceedings, costs may be awarded as in chancery actions, it establishes that the costs and expenses of administration, including attorney's fees, are part of the classification of costs that are to be given priority. The costs of administration include not only the probate court fees but also reasonable compensation for the personal representative and the personal representative’s attorney.

Section 733.6171: Compensation of Attorneys

Finally, Florida Statute 733.6171 outlines the compensation structure for attorneys involved in probate cases. It provides a guideline for what is considered 'reasonable' compensation for the attorney's services, given the value of the estate and the complexity of the work required. This compensation, like other administration expenses, is paid from the estate's assets.

Benefit to the Estate and 'Reasonable' Compensation

The operative term under 733.6171 is that the attorney's fees must be for 'reasonable' services that have provided a 'benefit' to the estate. Services that qualify for compensation could include, but are not limited to, providing legal advice to the personal representative, preparing necessary court documents, assisting with the inventory and appraisal of estate assets, and representing the estate in any legal disputes.

How it All Ties Together

How these statutes interrelate is crucial for a clear understanding of the probate process. Section 733.707(1)(a) asserts that administration costs, which include attorney's fees under 733.106(3), must be paid first from the estate's assets. Then, section 733.6171 goes further to explain how to calculate these attorney's fees based on the 'reasonableness' of the services rendered and their 'benefit' to the estate.

The connection between these statutes underlines the importance of ensuring that the estate's administration is handled efficiently and effectively. Given that these costs are prioritized, a well-managed estate administration process can result in fewer expenses and more assets for distribution to beneficiaries.

Balancing Costs and Benefit

An important aspect to consider here is the balance between the cost of administration and the benefit provided to the estate. Ideally, the services rendered by the attorney and personal representative should improve the estate's value or prevent the value from decreasing. However, if administration costs are disproportionately high compared to the estate's value, they may erode the assets meant for the beneficiaries.

Importance of an Experienced Probate Attorney

This highlights the importance of having an experienced probate attorney. They will not only ensure the estate is administered efficiently but also work to protect the estate's value, whether through adept legal advice, effective dispute resolution, or efficient estate management.

Understanding the relationship between Florida Probate Statutes 733.707(1)(a), 733.106(3), and 733.6171 is crucial for anyone involved in the probate process. By doing so, one can grasp the importance of administration costs and how the attorney's fees are calculated. Remember, a skilled probate attorney will provide valuable services that benefit the estate, justifying the cost and ensuring efficient estate administration, thereby preserving as much of the estate as possible for the beneficiaries.

Florida Probate Statute 733.617 -Personal Representatives and Attorneys

Florida Probate Statute 733.617 then further details how personal representatives and attorneys should be compensated for their services. This law sets forth a sliding scale based on the estate's value, dictating the maximum compensation that these professionals can receive.

According to this statute, for the first $1 million of the value of the estate, the personal representative and the attorney each can receive a fee of up to 3%. The percentage decreases as the value of the estate increases, helping to maintain the reasonableness of these fees.

While these fees might seem substantial, the responsibilities and obligations placed on the personal representative and attorney are quite heavy. They are tasked with managing the decedent's assets, satisfying creditor claims, filing tax returns, and ensuring the smooth distribution of assets to beneficiaries – tasks that require significant time, knowledge, and effort.

Importantly, Florida Probate Statute 733.617 also recognizes that there might be instances when the personal representative or attorney may need to perform services for the estate that are outside of the ordinary course of estate administration. These could include litigating on behalf of the estate, selling real estate, or running the decedent's business. In such cases, they can be paid "extraordinary fees" for their additional services, as long as these services provide a benefit to the estate.

Understanding the connection between these three statutes allows us to better appreciate the intricacies of the Florida probate process. These laws together ensure that the probate administration is fair and efficient, with a clear hierarchy of payments and fair compensation for those responsible for administering the estate.

These statutes also highlight the importance of managing the costs of administration, as these costs are paid first when settling claims against the estate. Therefore, it's crucial for the personal representative and the attorney to manage their time and efforts efficiently to limit unnecessary costs.

In conclusion, understanding Florida Probate Statutes 733.707(1)(a), 733.106(3), and 733.6171 can shed light on the often confusing and intricate process of probate. By understanding how these laws govern the payment of claims and the compensation of those administering the estate, individuals involved in the probate process can better navigate the proceedings and ensure the successful and fair administration of the estate. Probate may be a challenging process, but these laws, among others, are there to guide you, provide structure, and ensure fairness and efficiency.

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