Fee Disputes: What Heirs Can Challenge in Pennsylvania Probate

Key Takeaways

Heirs and beneficiaries have the legal right to challenge probate fees in Pennsylvania. If you believe executor compensation or attorney fees are excessive, you can file objections with the Orphans' Court. The court will review whether the fees meet the "fair and reasonable" standard required under Pennsylvania law.

The formal accounting is your opportunity to review and object. Before an estate closes, the executor must file an accounting that details all income, expenses, and proposed distributions. Beneficiaries receive notice of this filing and have a window to review the numbers and raise objections before the court confirms the account.

You need standing to challenge fees - but most heirs have it. To object, you must be an "interested party" who would be affected by the fees charged. If excessive fees reduce your inheritance, you have standing. This includes beneficiaries named in the will and heirs who would inherit under intestate succession.

Successful challenges can result in fee reductions returned to the estate. If the Orphans' Court agrees that fees were unreasonable, it can order reductions. Those excess fees go back into the estate and ultimately increase what beneficiaries receive.

What Fees Can Heirs Challenge in Pennsylvania Probate?

Beneficiaries can challenge several categories of fees and expenses in Pennsylvania probate. Understanding what's subject to review helps you know where to focus your attention.

Executor compensation is often the largest fee heirs scrutinize. Pennsylvania law entitles executors to "reasonable and just" compensation under 20 Pa.C.S. § 3537, but doesn't specify exact percentages. The Johnson Estate fee schedule provides guidance, but executors sometimes claim more than those guidelines suggest. If an executor takes 7% on a straightforward estate when Johnson guidelines suggest 3-4%, that's worth questioning.

Attorney fees are also reviewable. Pennsylvania has no statutory fee schedule for probate attorneys - fees just need to be "fair and reasonable" given the work performed. I've seen estates where attorney bills seemed completely disconnected from the actual complexity of the administration. A simple estate with no disputes shouldn't generate $40,000 in legal fees.

Other professional fees can be challenged too, including accountant charges, appraisal costs, and real estate commissions. While these are often legitimate expenses, beneficiaries can object if they seem inflated or unnecessary.

Questionable expenses paid by the executor might also warrant objection. Did the executor reimburse themselves for expenses that weren't actually estate-related? Did they pay for services that weren't needed? The accounting should show every dollar that left the estate, and beneficiaries can question any of it.

How Does the Formal Accounting Process Work?

Understanding Pennsylvania's accounting process is crucial if you want to protect your inheritance. This is when fees become visible and challengeable.

The executor must file a formal accounting with the Orphans' Court that shows everything that happened financially during estate administration. This includes all assets collected, all expenses paid (including fees), and a proposed distribution to beneficiaries. In most Pennsylvania counties, the executor must file this accounting within 18 months of receiving Letters Testamentary, though extensions are possible.

Once filed, beneficiaries receive notice of the accounting and the scheduled audit or confirmation date. This notice tells you when and where the account will be presented to the court. It also tells you the deadline for filing written objections - and this deadline matters. If you don't object before the account is confirmed, you may lose your right to challenge fees.

The confirmation process varies by county. Some Pennsylvania counties hold formal audits where a judge reviews the accounting in detail. Others use a confirmation system where accounts are approved unless someone objects. Either way, an uncontested accounting typically gets approved as filed. The court assumes everything is fine unless you tell them otherwise.

If you do file objections, the court will schedule a hearing. Both sides present evidence - you explain why fees are excessive, and the executor or attorney justifies their charges. The judge then decides whether to reduce fees, approve them as claimed, or make other adjustments.

What Makes a Fee "Unreasonable" in Pennsylvania?

Knowing what courts consider unreasonable helps you evaluate whether you have grounds to object. Pennsylvania courts look at multiple factors, not just percentages.

Comparison to the Johnson guidelines is often the starting point. While the Johnson Estate schedule isn't legally binding, many Orphans' Court judges use it as a benchmark. Fees that significantly exceed Johnson percentages raise a red flag and require justification. An executor claiming 8% on a $500,000 estate better have a compelling explanation.

The work actually performed matters tremendously. A straightforward estate with liquid assets, cooperative beneficiaries, and no disputes shouldn't generate enormous fees. Conversely, an estate involving contested wills, complex tax issues, or litigation might justify higher compensation. The fees should match the actual effort required.

The complexity of assets affects reasonable compensation. An estate consisting mainly of bank accounts is easier to administer than one with multiple real estate properties, business interests, or unusual assets. Executors handling genuinely complex estates deserve more compensation than those handling simple ones.

Results achieved can factor in too. If the executor did exceptional work - perhaps negotiating favorable terms on property sales, discovering hidden assets, or resolving disputes efficiently - higher fees might be justified. Poor results or delays cut the other direction.

Double-dipping is always problematic. If the executor is also the estate's attorney (or uses their own law firm), courts scrutinize fees carefully. Both executor and attorney fees must each be reasonable, and the combination shouldn't exceed what's fair for the total work involved.

How Do You File an Objection to Probate Fees?

If you've reviewed the accounting and believe fees are excessive, here's how to challenge them in Pennsylvania.

Act before the deadline. Each county sets a deadline for filing objections, typically stated in the notice you receive about the accounting. Missing this deadline can waive your right to object. Don't procrastinate - if you have concerns, start preparing your objection immediately.

Put it in writing. Pennsylvania Orphans' Court rules require written objections filed with the Clerk of the Orphans' Court. Your objection should specifically identify what you're challenging (executor fees, attorney fees, specific expenses) and explain why you believe the amounts are unreasonable.

Be specific. Vague complaints like "the fees seem high" won't get you far. Compare the claimed fees to Johnson guidelines. Point to the relative simplicity of the estate. Note if the administration was delayed or poorly handled. Specific factual arguments are more persuasive than general unhappiness.

Gather supporting information. If you can show that similar estates in Pennsylvania were administered for lower fees, that helps. If you have evidence the executor didn't actually perform all the work claimed, include it. If the estate was simple and straightforward, document why.

Consider hiring an attorney. Fee disputes can get complicated, and Orphans' Court has specific procedures. An experienced probate litigation attorney knows how to present your case effectively. Ironically, you may need to spend money to challenge someone else's excessive fees - but if the disputed amount is large enough, it can be worthwhile. Many attorneys offer consultations to help you assess whether your case has merit before you commit.

What Happens If Your Objection Succeeds?

When the Orphans' Court agrees that fees were excessive, it orders reductions. Understanding the potential outcomes helps you decide whether to pursue a challenge.

Fee reductions go back to the estate. If the court reduces executor compensation by $10,000, that money returns to the estate fund. It then gets distributed to beneficiaries according to the will or intestacy laws. Your share of the inheritance increases proportionally.

The court has discretion. Judges aren't required to follow any specific formula. They weigh all the factors and decide what's fair. Sometimes courts reduce fees substantially; other times they make modest adjustments or uphold the original amounts. Outcomes vary based on the specific facts.

Costs can be allocated. Legal fees for probate litigation are typically paid from the estate. However, if a party acted in bad faith - either an executor who claimed clearly excessive fees or a beneficiary who filed frivolous objections - the court might order that party to pay costs personally. This risk cuts both ways.

Relationships often suffer. Family executors who face fee challenges from beneficiaries usually don't continue those relationships warmly. If the executor is your sibling or relative, consider whether a fee dispute is worth the family fallout. Sometimes the answer is yes, especially for large amounts. But it's worth considering before you file.

I've worked with families where a fee dispute was absolutely warranted - the executor had taken compensation far exceeding anything justifiable and the beneficiaries recovered a significant amount. I've also seen disputes where the savings were minimal but the family damage was permanent. Weigh the numbers against the relationships.

When Should You Not Challenge Fees?

Not every fee you dislike is actually excessive. Knowing when to hold back saves time, money, and relationships.

Fees within Johnson guidelines are hard to challenge. If the executor took 4% on a mid-sized estate and that aligns with Johnson, you probably won't win a reduction. Courts give significant weight to those benchmarks when fees fall within them.

Complex estates justify higher fees. If the estate involved selling multiple properties, handling business interests, resolving creditor disputes, or managing tax complications, higher compensation makes sense. Don't assume fees are excessive just because they seem like a lot of money.

Your feelings aren't legal grounds. Disliking how the estate was handled, wishing you'd inherited more, or resenting the executor personally aren't bases for fee objections. You need to show the fees were actually unreasonable under Pennsylvania law.

Small amounts may not be worth pursuing. Litigation costs money. If the potential reduction is $2,000 but an attorney will cost you $3,000 to pursue it, the math doesn't work. Consider whether the disputed amount justifies the effort.

You might be wrong. Before filing objections, consider that you might not have the full picture. The executor may have dealt with complications you're unaware of. The attorney may have performed work you don't see reflected in the simple accounting summary. Sometimes a conversation with the executor clarifies things and resolves concerns without court involvement.

Frequently Asked Questions

Q: How long do I have to file an objection to probate fees in Pennsylvania?

A: The deadline varies by county, but you typically must file written objections before the scheduled confirmation or audit date. This is usually stated in the notice you receive about the accounting - read it carefully. Once an account is confirmed by the Orphans' Court, challenging fees becomes much more difficult. If you have concerns, don't wait. Review the accounting as soon as you receive it and prepare your objection well before the deadline.

Q: Can I challenge fees if I already signed a receipt or waiver?

A: It depends on what you signed and when. If you signed a Family Settlement Agreement approving the accounting and releasing the executor from liability, you've likely waived your right to challenge. These documents are often presented to beneficiaries at the end of administration as a faster alternative to formal court confirmation. Read carefully before you sign anything. Once you approve an accounting and release the executor, reversing that position is very difficult absent fraud or misrepresentation.

Q: What if the executor is also serving as the estate's attorney?

A: This situation requires extra scrutiny. Pennsylvania allows the same person to serve as both executor and attorney, but both fees must be separately reasonable. The Orphans' Court will examine whether the combined compensation is fair for the work performed. Double-dipping - charging full executor fees plus full attorney fees for overlapping work - is a legitimate basis for objection. If you see this arrangement, compare the total fees to what would be reasonable if two separate people performed the roles.

Q: Do I need an attorney to challenge probate fees?

A: You can file objections yourself, but having an attorney significantly increases your chances of success. Orphans' Court procedures are technical, and presenting evidence effectively requires skill. An experienced probate litigator knows what arguments persuade judges and how to document your case. For large disputed amounts, the cost of hiring an attorney is usually worthwhile. For smaller disputes, weigh the legal costs against potential recovery.

Protect Your Inheritance

Fee disputes are stressful but sometimes necessary to protect what you're rightfully owed. If you're a beneficiary concerned about excessive fees in a Pennsylvania estate, you have legal options.

Before challenging fees, it helps to understand how probate costs typically work and what's considered reasonable. If estate real estate is involved and you have questions about how the property was handled or sold, a probate real estate specialist can help you evaluate whether things were done properly.

Contact PA Probate Help to discuss your situation, or download our free Pennsylvania probate guide for more information on beneficiary rights during estate administration.