The Short Answer

In Pennsylvania probate, an “hourly retainer” is typically an upfront deposit that the lawyer bills against as work is performed, with periodic invoices showing time spent and costs. If the estate does not have enough liquid assets to keep paying administration expenses (including reasonable attorney’s fees), the personal representative may have to pause work, seek court guidance, or address whether assets must be sold—because paying the wrong bills in the wrong order can create personal risk for the executor/administrator.

What Pennsylvania Law Says

Probate legal fees are generally treated as part of the estate’s administration expenses when they are reasonable and incurred for the benefit of the estate (not just a particular beneficiary). When an estate is short on funds, Pennsylvania law sets an order of priority for which claims get paid first, and administration costs are at the top of that list.

The Statute

The primary law governing payment priority when an estate cannot pay everything is 20 Pa.C.S. § 3392.

This statute establishes that if estate assets are insufficient, the personal representative must pay claims in a specific order of priority—starting with costs of administration, before many other categories of claims.

Separately, Pennsylvania law also recognizes that compensation in estate administration must be reasonable under the circumstances. For example, the Orphans’ Court is directed to allow reasonable compensation to the personal representative. See 20 Pa.C.S. § 3537.

If you want a deeper discussion of how retainers are commonly funded and documented in PA probate, you may also find this helpful: Can a Pennsylvania Executor Pay a Probate Attorney Retainer from Estate Funds (and How Are Attorney Fees Handled)?

Why You Should Speak with an Attorney

While the general rule is straightforward (reasonable administration costs are paid first), the real risk is how that rule applies to your specific estate and retainer agreement. Legal outcomes often depend on:

• Strict Deadlines: Pennsylvania probate has formal accounting and court oversight rules, and disputes over fees or distributions often arise during accountings. (For example, the timing and ability to file an account is addressed in 20 Pa.C.S. § 3501.1.)
• Burden of Proof: Whether attorney time is a proper “administration expense” can depend on whether the work benefited the estate as a whole versus advancing one person’s position (for example, fee disputes, will contests, or intra-family litigation).
• Exceptions and Personal Risk: If an executor pays the wrong parties first (or distributes too early) and later can’t pay higher-priority expenses, beneficiaries and creditors may challenge those decisions—and the executor can face surcharge exposure in Orphans’ Court.

When assets are tight, a probate lawyer’s role is often less about “paperwork” and more about protecting the personal representative from missteps, managing creditor pressure, and positioning the estate to close without avoidable litigation.

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.