You've been asked to be the personal representative (aka "executor") of someone's estate. Congratulations, as that means the testator has entrusted you to perform an important job. While you might feel like it's your duty to volunteer your services for free and that it's a labor of love, you may not be fully aware of what's in store for you when it's time to serve. Being a personal representative is time consuming, it can be a lot of work, and it's often a thankless job.
The personal representative's responsibilities include filing the probate application or petition, notifying creditors and beneficiaries, collecting and securing the estate assets, filing an inventory with the court, filing the decedent's final tax returns, and distributing the remaining estate assets to the beneficiaries. On top of that you may find yourself refereeing family squabbles.
Therefore, you might want to consider asking for compensation for your services, and discussing this with the testator. You may be pulled away from your job and your family for a while to perform your duties, perhaps even requiring travel. Your time is valuable. It is perfectly appropriate to ask for fiduciary compensation and you are entitled to it under Minnesota law, even if compensation is not specifically addressed in the Will.
However, compensation for a personal representative must be reasonable and the statute does not give specific guidance on what rate to bill the estate. To determine what is reasonable, the court may consider the following factors: The time and labor required, the complexity and novelty of problems involved, and the extent of the responsibilities assumed and the results obtained.
For example, charging $250 an hour to haul furniture would likely not be reasonable, when someone might ordinarily charge $25 an hour for that sort of task. On the other hand, expecting a personal representative to only receive $25 an hour to professionally prepare the decedent's tax return would also not be reasonable. You may find it best to bill the estate at different rates for different tasks. If you are responsible for both hauling the furniture and preparing the taxes, you should bill at reasonable hourly rates appropriate for each job.
Typically, $25 to $50 per hour is an equitable range for most routine services, and higher rates might be appropriate in the case of professional services. It depends on the tasks you perform, in light of the statutory "reasonableness" criteria.
When it comes time for you to serve, keep detailed notes of the services you provide. Write down the tasks performed, the time you spent on each, and the hourly rate. Don't forget to list any out-of-pocket expenses you may have incurred, such as postage, filing fees, etc. The court will require you to account for all of your billing and expenditures. The decedent's heirs may also be keeping a close eye on your fees so be prepared to explain your billing to them.
Of course, your compensation as a personal representative is considered taxable income to you.