The state of Alabama adapts the generally accepted principle of reasonable compensation approach in determining executor’s fees. Under this approach, compensation given to executors is based, among other things, on the difficulty of the issues involved, amount of time required, expertise of the executor, and necessity of employing other professionals such as lawyers and accountants.

Alabama Executor Fee Statute

Determination of executor’s fees in the state of Alabama is governed by Ala. Code 43-2-682, to wit:

“Upon any annual, partial or final settlement made by any administrator or executor, the court having jurisdiction thereof may fix, determine and allow the fees or other compensation to which any such administrator or executor is entitled from an estate up to the time of such settlement, and may also fix, determine and allow an attorney’s fee or compensation, to be paid from such estate to attorneys representing such administrator or executor, for services rendered to the time of such settlement.”

See Ala. Code § 43-2-682 (2013).

Even when the heirs or beneficiaries of the estate and the administrator agree as to the mode and amount of the latter’s compensation, such agreement is not binding unless the court also agrees that the compensation is “reasonable.”

You can find the relevant codes or explore the full statute on the official state website here:  Alabama State Legislature  (Click “Code of Alabama,” then”View,” then “Title 43,” then “Section 2″)

Alabama Case Law Addressing Executor Fees