Disclaimer: This article is for informational purposes and does not constitute legal advice.
Detailed Answer
Under New York law, a personal representative (executor or administrator) may recover statutory commissions for administering an estate. The key statute is New York Estates, Powers & Trusts Law (EPTL) § 2309.
Statutory Commissions
- On Gross Estate at Death: Commissions range from 5% on the first $100,000 down to 1.5% on amounts above $20 million (EPTL § 2309(1)).
- On Receipts and Disbursements: The same percentage schedule applies to all money collected and paid out during administration (EPTL § 2309(2)).
- On Dispositions of Assets: An additional 1% commission on the gross sale price of any estate property sold, exchanged, or otherwise disposed of (EPTL § 2309(3)).
Hypothetical Example
Imagine an estate with $500,000 in assets at death and a real estate sale of $300,000 during administration:
- 5% of first $100,000 = $5,000
- 4% of next $200,000 = $8,000
- 3% of remaining $200,000 = $6,000
- Total on Estate: $19,000
- Additional on Sale: 1% of $300,000 = $3,000
- Grand Total: $22,000
Court-Approved Additional Fees
If statutory commissions do not fairly compensate the work performed, a personal representative can petition the surrogate’s court for extra fees under the Surrogate’s Court Procedure Act (SCPA) § 2307. See SCPA § 2307.
Practical Considerations
The will may modify or waive commissions. The court may adjust rates based on factors like estate size, complexity of administration, and duration of proceedings.
Helpful Hints
- Review the will for any specific fee provisions or waivers.
- Keep detailed records of time, tasks, and expenses to support any petition for additional compensation.
- Discuss anticipated commissions with beneficiaries early to reduce disputes.
- Consult a probate attorney for guidance tailored to your case.