Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a qualified Louisiana attorney for your specific situation.
Detailed Answer
1. Who is a Personal Representative?
In Louisiana, a personal representative (formerly called executor or administrator) manages and distributes estate assets under the Louisiana Succession Code. The court appoints this person after a decedent’s death. See La. Civ. Code art. 3273.
2. Statutory Commissions: Ordinary vs. Extraordinary
Louisiana law allows a personal representative to claim commission for services rendered. The Succession Code divides commissions into two categories:
- Ordinary Commissions: A percentage based on the value of the estate at the time of appointment. These commissions compensate routine duties like marshaling assets, paying debts, and distributing inheritances. See La. Civ. Code art. 3390 (link).
- Extraordinary Commissions: Fees for non-routine or time-intensive tasks, such as litigating estate claims, managing complex investments, or handling environmental cleanup. The amount must reflect the service’s complexity, time spent, and benefit to the estate. See La. Civ. Code art. 3391 (link).
3. Commissions on Sale Proceeds
When the personal representative sells estate property, sale proceeds pass through the estate account. Louisiana courts and statutes treat proceeds as part of the estate’s assets. Therefore, ordinary commissions automatically apply to the gross sale price just as they apply to other estate assets. The personal representative may not double-dip by charging a separate commission on post-sale funds beyond the statutory rate on the gross sale amount.
4. Approval and Court Oversight
Heirs or legatees may agree in writing to the proposed commission, or the court may approve. If beneficiaries object, the court holds a hearing to determine a reasonable fee. See La. Civ. Code art. 3392 (link).
5. How to Seek Commission
- File an itemized petition in the succession proceeding.
- Detail the value of assets managed and services performed.
- Cite the applicable statute (arts. 3390–3395).
- Submit consents from beneficiaries, if available.
- Attend the court hearing, if required.
Helpful Hints
- Keep accurate records of all estate transactions and communications.
- Prepare an inventory of assets with current fair-market values.
- Discuss commission issues early with heirs to reduce disputes.
- Review La. Civ. Code arts. 3390–3395 carefully before filing.
- Engage counsel if the estate holds unique or complex property.