Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified West Virginia probate attorney for advice on your specific situation.
Detailed Answer
Under West Virginia law, a personal representative (PR) may seek reasonable compensation—often called a commission—for services rendered in collecting, managing, and distributing estate assets, including proceeds from sales. The probate court holds discretion to determine the amount and basis of compensation based on the estate’s complexity, the value of assets handled, and the PR’s duties.
Statutory Authority: West Virginia Code §44-1-12 authorizes the court to allow a personal representative “such compensation . . . as it deems just and reasonable” for handling estate matters. WV Code §44-1-12.
Assets and Sale Proceeds: When the PR collects assets—bank accounts, investments, real estate sale proceeds, or personal property—the total value of these assets becomes the basis for compensation. Courts typically look at the gross value of assets collected, rather than net distributions, to calculate the commission. If real property is sold to pay debts or for distribution, the sale proceeds are treated the same as other assets and factor into the commission calculation.
Procedure:
- The PR files an application or account with the probate court, detailing assets collected, expenses paid, and services rendered.
- The PR requests approval for a commission, specifying the proposed rate or amount.
- The court reviews factors such as estate size, litigation, tax filings, creditor claims, and difficulty of administration.
- After notice to interested parties, the court issues an order approving, modifying, or denying compensation.
Rate Guidelines: West Virginia courts have not fixed statutory percentage rates. Instead, they evaluate each case’s facts. In practice, courts sometimes reference customary rates (for example, 2–5% on asset value) but retain full discretion. The PR should support the requested amount with evidence of time spent, complexity of administration, and any extraordinary work.
Example Hypothetical: Suppose a PR collects $400,000 in bank accounts and sells a decedent’s home for $200,000. The PR petitions for a 3% commission. The court examines the accounting, finds no disputes, and approves a 3% commission on the combined $600,000, awarding $18,000.
Helpful Hints
- Review WV Code §44-1-12 early—understand the court’s discretion on compensation.
- Keep detailed time logs and records of tasks performed for the estate.
- Include a clear compensation request in your initial fiduciary account or application.
- Provide estate beneficiaries with notice before the hearing on compensation.
- Be prepared to address objections; justify rates with documentation of complexity.
- Consider hiring an estate attorney to guide you through the probate process and compensation petition.