Can a Pennsylvania Executor Pay a Probate Attorney Retainer from Estate Funds (and How Are Attorney Fees Handled)? | Pennsylvania Probate | FastCounsel
PA Pennsylvania

Can a Pennsylvania Executor Pay a Probate Attorney Retainer from Estate Funds (and How Are Attorney Fees Handled)?

How are probate attorney fees handled, and can an executor pay the retainer fee from estate funds rather than out-of-pocket? - Pennsylvania

The Short Answer

In Pennsylvania, probate-related attorney fees are typically treated as an estate administration expense when the legal work is for the benefit of the estate. That often means an executor can pay a reasonable attorney retainer from estate funds (once estate funds are available), but the fee still must be justifiable and properly documented because it may be reviewed by the Orphans’ Court and challenged by beneficiaries.

Why You Should Speak with an Attorney

While the statutes provide the general rule, applying it to your specific situation is rarely simple. Legal outcomes often depend on:

  • Cash-flow and timing: Even if fees are a proper administration expense, the estate may not have liquid funds early on (or may need to follow a priority of payments if assets are limited). See 20 Pa.C.S. § 3392.
  • Reasonableness and documentation: Beneficiaries can object to attorney fees or retainers they believe are excessive or not for the estate’s benefit, and the executor may have to justify the payments in an accounting.
  • Scope of representation: Fees for work that primarily benefits one beneficiary (or the executor personally in a dispute) may be treated differently than fees that benefit the estate as a whole—creating potential surcharge risk if the wrong party pays.

Because the executor has fiduciary duties and personal exposure if payments are mishandled, it’s usually worth getting probate counsel involved early to structure the engagement and payment method in a way that is defensible in the Orphans’ Court.

If you want additional context on handling estate funds properly, you may also find this helpful: Can a Pennsylvania executor distribute proceeds directly to a trust or beneficiaries instead of using the estate bank account?

Get Connected with a Pennsylvania Attorney

Do not leave your legal outcome to chance. We can connect you with a pre-screened Probate attorney in Pennsylvania to discuss your specific facts and options.

Find a Pennsylvania Attorney Now

Disclaimer: This article provides general information under Pennsylvania law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.