Michigan Executor and Trustee Compensation: What's Actually Reasonable in 2026?

Your mom died. The will named you as personal representative. You spent the last six months marshaling assets, paying creditors, dealing with the IRS, fighting over the recliner, and explaining things to siblings. Now the final accounting is due. Can you pay yourself? How much? Will the court approve it? Will it blow up at Thanksgiving? Michigan law has a deliberately vague answer -- "reasonable compensation" under MCL 700.3719 (for executors) and MCL 700.7708 (for trustees). There is no statutory percentage. But Michigan probate courts have spent decades developing benchmarks, and you can charge an entirely defensible fee if you know the rules. This guide gives you the actual numbers, the 12-factor test the courts use, the tax math that often makes waiving the fee smarter than collecting it, and a step-by-step playbook for DIY personal representatives.

The 30-Second Answer

Executors (personal representatives): Michigan does not set a percentage. The standard practical range is 2% to 4% of the gross estate, or an hourly rate ($25-$75 per hour for non-professional family members, higher for attorneys/accountants). Pay yourself periodically without prior court approval, but disclose every dollar on the final accounting.

Trustees: Family/individual trustees: 0% to 1% of trust assets annually, or 1% to 3% one-time on closure. Professional trustees: 0.5% to 1.5% annually. Corporate trustees: 1% to 2% annually with minimum dollar charges.

Waiving: Many Michigan family members waive the fee entirely because (a) the fee is taxable as ordinary income but an inheritance is not, and (b) it avoids family conflict. Doing the math first matters.

What the Statutes Actually Say

Two key Michigan statutes govern fiduciary compensation:

• MCL 700.3719(1): "A personal representative is entitled to reasonable compensation for services performed. A personal representative may pay the personal representative's own compensation periodically as earned without prior court approval." Per the Michigan Bar Journal analysis on compensation of fiduciaries, this means the executor can self-pay as they go in informal probate -- but must disclose all compensation on the final accounting.
• MCL 700.7708(1): "If the terms of a trust do not specify the trustee's compensation, a trustee is entitled to compensation that is reasonable under the circumstances." If the trust DOES specify compensation, that amount controls -- but per Kuhn Rogers' analysis, a court can adjust the specified amount if the trustee's duties changed substantially or if the specified fee is unreasonably low or high.

Two more statutes you should know about:

• MCL 700.3721: The probate court can review the personal representative's compensation and order a refund if the court determines the fee was excessive. The burden of proof is on the personal representative to justify the fee.
• MCR 5.313(A): Court rules require any attorney serving as personal representative (or as attorney for one) to maintain detailed time records.

The Michigan legislature deliberately avoided a statutory percentage. Per the analysis at Offer Now Michigan's PR compensation guide, "Michigan deliberately avoided percentage-based fees so that compensation matches the actual work performed." A 3% fee on a $1 million estate that took 50 hours of work would be $30,000 -- $600/hour. A court is going to take a hard look at that.

Executor Fee Benchmarks (Real Numbers)

Despite the absence of a statutory formula, Michigan attorneys, courts, and probate professionals have developed two common methods:

Method 1: Percentage of Gross Estate

• 1% to 2%: Simple estates -- one home, one bank account, one beneficiary, no creditor disputes
• 2% to 3%: Standard estates -- multiple accounts, real estate, several beneficiaries, normal complexity
• 3% to 4%: Complex estates -- business interests, contested distributions, out-of-state property, litigation
• Above 4%: Rarely approved without exceptional circumstances and documentation

Method 2: Hourly Rate

• $25-$45/hour: Family-member personal representative with no professional credentials
• $45-$75/hour: Family member with some financial or administrative background
• $75-$150/hour: Non-attorney professional fiduciary (accountant, financial advisor)
• $200-$400/hour: Attorney serving as personal representative (but only for attorney-level work, not basic admin)

The 2014 Michigan Court of Appeals case In re Poling Estate approved $90/hour as reasonable compensation for an experienced personal representative, illustrating the broad discretion probate courts have. The 2007 In re Winters Estate case capped fiduciary fees at "$15,000 or 1.5% of the estate, plus documented expenses" -- a court can also be quite restrictive when the estate is small or the work was limited.

Practical Examples (2026 estates)

• $50,000 estate, simple, ~30 hours of work: $750-$1,500 fee (1.5%-3% or 30 hours at $35/hr)
• $200,000 estate, moderate, ~70 hours of work: $4,000-$6,000 fee (2%-3% or 70 hours at $60/hr)
• $500,000 estate, complex, ~150 hours of work: $10,000-$20,000 fee (2%-4%)
• $1,000,000 estate, business included, ~300 hours of work: $20,000-$40,000 fee (2%-4%)

Trustee Fee Benchmarks (Real Numbers)

Trustee compensation depends on whether the trust is closing (a one-time fee for distributing assets and winding up) or continuing (annual fees for ongoing administration). Per SimplyTrust's Michigan trustee compensation calculator:

One-Time Trust Closure Fees (trust distributes and closes within 6-18 months)

• Family/individual trustee: 1% to 3% of trust value (similar to executor fees)
• Professional trustee: 1.5% to 3%
• Corporate trustee: 2% to 4%, often with minimums

Annual Trust Fees (ongoing administration)

• Family/individual trustee: 0% to 1% of trust assets per year (many family members waive entirely)
• Professional trustee (CPA, financial advisor): 0.5% to 1.5% per year
• Corporate trustee (bank trust department): 1% to 2% per year with annual minimums of $3,000 to $10,000+

If your trust will administer a small annual fund for a beneficiary (say, $200,000 for a special-needs adult), a corporate trustee's 1.5% would be $3,000 a year. A family member trustee might charge $1,000 or nothing. Over 20 years that is a $60,000 difference -- one of the strongest arguments for using a family member as trustee if a competent one is available.

The 12-Factor Reasonableness Test

When a Michigan probate court is asked to evaluate the reasonableness of a fiduciary fee, the controlling case is Comerica Bank v Adrian, 179 Mich App 712 (1989), which sets out 12 factors. From the In re Temple Marital Trust opinion, the factors are:

1. The size of the trust or estate
2. The responsibility involved
3. The character of the work involved
4. The results achieved
5. The knowledge, skill, and judgment required and used
6. The time and services required
7. The manner and promptness in performing duties and responsibilities
8. Any unusual skill or experience of the fiduciary
9. The fidelity or disloyalty of the fiduciary
10. The amount of risk
11. The custom in the community for allowances
12. Any estimate of the fiduciary of the value of his services

"The weight to be given any factor and the determination of reasonable compensation is within the probate court's discretion." Translation: if the fee passes the smell test under most of those 12 factors, the court will approve it. If it fails a few (factor 4 results achieved, factor 6 time required), the court can slash the fee.

How to Actually Charge as a DIY Executor

Here is a practical playbook for a Michigan family-member personal representative:

1. Keep a contemporaneous time log -- the day, the task, the time spent. Even one paragraph for each session. "June 5, 2026: Met with bank to close mom's checking account, 1.5 hours." Without records, a court (and the IRS) will not approve the fee. Per Avvo's Michigan PR fee analysis, "the PR should keep a journal of his or her services and keep track of the time spent."
2. Pick a method up front. Either an hourly rate or a percentage cap, not both. Stick with it.
3. Be conservative. 2% to 3% of estate value is rarely challenged. 4% gets scrutinized. 5%+ triggers objections.
4. Pay yourself periodically in informal probate (no prior court approval needed under MCL 700.3719(1)), but always document.
5. Disclose every dollar on the final accounting. Beneficiaries get to see exactly what you charged and why. Surprises here lead to litigation.
6. Discuss with beneficiaries in advance if you can. A family-meeting conversation about "I'm going to pay myself $5,000 for the work" is much better than a $5,000 line item that surprises a sibling on the final accounting.
7. Do not double-bill. If you are also doing attorney-level work (you happen to be an attorney) or accountant-level work (you are an accountant), you can charge for each separately but you must track them separately. You cannot charge attorney rates for going to the bank.
8. Avoid charging for personal-conflict work. Time spent fighting with siblings about who gets the recliner is not compensable. Only time spent on actual estate administration.

Should You Waive the Fee?

Many Michigan family-member executors waive their fees entirely. Three reasons:

1. Tax math (see below). Fees are ordinary income; inheritances are not.
2. Family relationships. A waived fee removes any whiff of self-dealing and prevents future "you charged us for that?" arguments.
3. Speed. Skipping the fee discussion gets the estate closed faster.

Three reasons NOT to waive:

1. The estate is large enough that the work is substantial (50+ hours), and you actually need the money.
2. Other beneficiaries would receive much more than you under the will, and the fee is a way of recognizing the work you did.
3. Your tax bracket is low (so the income tax cost is small) and you would rather have it as taxable income than as part of someone else's inheritance.

The Tax Trap (Why a Family Member Often Waives)

Here is the math everyone forgets. Personal representative compensation is taxable as ordinary income, reported on Form 1040 of the recipient. The estate gets a corresponding deduction (Form 1041 or estate tax return).

An inheritance is NOT taxable to the recipient. Michigan has no inheritance tax, and the federal estate tax exemption is $15 million as of 2025 (see our Michigan estate tax 2026 guide), so virtually no Michigan family pays federal estate tax.

If you are the sole beneficiary of your mom's $300,000 estate AND you also serve as personal representative, here is what happens with a $9,000 (3%) fee:

• If you take the fee: You receive $9,000 of fee + $291,000 of inheritance = $300,000 total. But $9,000 is taxable. If you are in the 22% bracket, you pay $1,980 in federal income tax (plus 4.25% Michigan state income tax = $382, plus 15.3% self-employment tax if it's considered self-employment income = $1,377). Net: roughly $5,261 in your pocket from the fee, plus the $291,000 inheritance = $296,261.
• If you waive the fee: You receive $300,000 of inheritance, no tax. Net: $300,000.

The waive saves you roughly $3,739 in this scenario. The taxes can eat 40-50% of a family-member personal representative fee if the recipient is high-income and the estate would otherwise pass to them tax-free.

The math reverses if you are NOT a beneficiary -- if you are a third-party executor who would otherwise receive nothing, then taking the fee is the only way to get paid. And if you are a beneficiary in a low tax bracket, the fee may net out close to even.

Bottom line: do the math before deciding. If you are the sole or majority beneficiary, waiving usually wins. If you are a non-beneficiary executor or a minor beneficiary, taking the fee usually wins.

What If a Beneficiary Objects?

Beneficiaries are "interested persons" under EPIC and have the right to object to the personal representative's compensation on the final accounting. Under MCL 700.3721, the probate court will hold a hearing and apply the 12-factor Comerica test. The burden is on the PR to justify the fee. If the court finds the fee unreasonable, it can order a refund.

How to win an objection hearing:

• Detailed time records (the single most important thing)
• A clear explanation of what tasks were performed and why each was necessary
• Documentation that the rate or percentage charged is consistent with local custom (the eleventh Comerica factor)
• Evidence of results -- the estate closed faster, recovered a creditor's claim, found additional assets, etc.

How objections are typically resolved: in practice, most Michigan probate courts try to mediate fee disputes rather than slash fees outright. The hearing alone often costs more than the disputed amount, so parties usually settle.

Frequently Asked Questions

Can the will or trust set a specific compensation amount?

Yes. If the will specifies the personal representative's compensation ("My executor shall be paid $5,000"), that amount controls subject to court review. If the trust specifies trustee compensation, same. Most Michigan estate planning attorneys recommend NOT specifying a dollar amount -- it can become inadequate or excessive over time. Instead, the will or trust typically says "the personal representative/trustee shall be entitled to reasonable compensation."

Does the personal representative need to file a fee petition?

Not in informal probate. The PR can self-pay periodically without prior court approval and discloses on the final accounting. In formal probate, judges sometimes require a fee petition in advance, particularly in contested cases.

What if I'm also the attorney for the estate?

You can wear both hats and charge for both -- but you must keep separate time records for each role. PR work is charged at PR rates (typically $25-$75/hour for a family member); attorney work is charged at attorney rates ($200-$400/hour). You cannot bill PR-level work at attorney rates. See Becht v Miller, 279 Mich 629 (1937), which established the no-double-dipping rule.

Are executor fees taxable?

Yes. Reported as ordinary income on the recipient's Form 1040. The estate gets a deduction on Form 1041. If the executor is also a beneficiary and the estate would otherwise pass tax-free, waiving the fee often nets more after taxes.

How does compensation work for a co-personal-representative?

If two or more co-PRs are appointed, they share whatever compensation is reasonable -- not each receive a full fee. Most Michigan probate courts treat co-PR compensation as a single "reasonable compensation" amount divided among the co-PRs based on time spent.

Can I charge for travel time and mileage?

Yes, for reasonable travel necessary to perform PR duties. Standard IRS mileage rates apply ($0.67 per mile as of 2024-2025). Track the trips, document the purpose. Out-of-pocket expenses (filing fees, certified copies, postage) are always reimbursable on top of the fee.

What is the average executor fee in Michigan?

There is no published "average" because Michigan does not require fee reporting in a centralized database. Per practitioner surveys and the analysis at SimplyTrust's Michigan executor calculator, the typical range falls between 2% and 4% of estate value. Hourly billing tends to come in slightly lower in net terms ($30-$60/hour times 50-150 hours for a typical estate).

Can a beneficiary be the personal representative AND charge a fee?

Yes. There is no Michigan rule against a beneficiary serving as PR or charging compensation. But see the tax discussion above -- if you are a substantial beneficiary, waiving usually nets more.

Is trustee compensation different from executor compensation?

Yes -- structurally and rate-wise. Executor compensation is typically a one-time amount tied to closing the estate. Trustee compensation can be ongoing if the trust continues for years. Annual trustee fees are usually a small percentage (0.5-2%) because they recur. Executor fees are usually a larger percentage (2-4%) because they are one-time.

What happens if I die or resign mid-administration?

You are entitled to reasonable compensation for the work you did up to that point. Your successor (the next PR or trustee) is entitled to reasonable compensation for the work they do going forward. The court may have to allocate compensation between you if the period overlaps. Keeping good time records is critical.

Build a Plan That Spells Out Compensation

One of the most common Michigan estate planning failures is silence on compensation. A well-drafted will or trust spells out exactly how the personal representative or trustee gets paid -- by reference to a method ("reasonable compensation, with a benchmark of 3% of gross estate"), by a dollar amount, or by an hourly rate. The CreateMIWill Will Kit and Trust Kit include attorney-drafted compensation language that handles this without dollar-amount obsolescence, while leaving the door open for family-member waivers.