In Wisconsin, a Personal Representative (PR) is entitled to reasonable compensation for services and reimbursement of necessary expenses incurred in administering an estate, with the primary governing authority in Wisconsin Statutes § 857.05. A PR may be paid even if they are also a beneficiary, but all compensation must be reasonable under the circumstances.
What counts as “reasonable” compensation depends on factors such as the size and complexity of the estate, the time and effort required, the skill and responsibility involved, the results achieved, and whether the PR is also acting as an attorney or other professional. In informal probate, compensation is often paid without prior court approval unless disputed; in formal or supervised probate, the court may review and approve fees, and interested persons may object if compensation appears excessive.
In addition to compensation, a PR is entitled to reimbursement for reasonable out-of-pocket expenses paid on behalf of the estate, including filing fees, postage and mailing costs, appraisal and accounting fees, insurance premiums on estate property, travel expenses related to estate administration, and costs of property maintenance or preservation. PR compensation and expenses are classified as administration expenses and are paid before most creditor claims and before distributions to beneficiaries, as they are necessary costs of settling the estate.
If the PR is also an attorney, they may receive both PR compensation and attorney fees, but each must be reasonable and separately justified, and courts scrutinize dual compensation to prevent overpayment. A will may address compensation by specifying a fixed fee, increasing or decreasing statutory compensation, or waiving compensation entirely; however, courts may still review for fairness in some cases.
A PR may lose the right to compensation if they breach fiduciary duties, mismanage estate assets, or engage in self-dealing or fraud, and the court may also impose a surcharge requiring repayment. In summary, a Wisconsin PR is entitled to reasonable compensation and reimbursement of necessary expenses, subject to court review, and compensation can be reduced or denied if fiduciary duties are breached.
If you would like to discuss this matter more thoroughly, please reach out to our Madison Wisconsin Estate Planning attorneys. We are here to help!