Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for advice on your situation.
Detailed Answer
Under Alabama law, a personal representative—often called an executor or administrator—may petition the probate court for a commission on both the value of estate assets and the proceeds from their sale. This commission serves as the court-approved compensation for the work involved in winding up an estate.
Alabama’s Probate Code provides two key statutory provisions governing commissions:
- Ala. Code §43-2-347: Grants a baseline right to a commission on the gross value of the estate at the time of appointment.
- Ala. Code §43-2-80: Specifies a tiered percentage schedule based on asset value.
Typical tiered commission rates under §43-2-80 may include:
- 5% on the first $10,000 of estate value
- 3.5% on the next $40,000
- 2% on the next $150,000
- 1% on the next $200,000
- 0.5% on amounts over $400,000
If the personal representative sells estate property, Alabama courts generally calculate the commission on the gross sales proceeds rather than the original appraised value. This approach ensures the representative does not receive duplicate compensation for the same asset.
To secure a commission, the representative must file a fee petition with the probate court. The petition should list:
- All estate assets and their values at the time of appointment
- Sale dates and gross proceeds for each asset sold
- Time spent, services rendered and any extraordinary services
The court schedules a hearing to review the petition. Interested parties—such as beneficiaries or creditors—may object. The judge then determines whether to approve, reduce or deny the requested commission. Factors include estate complexity, total time devoted, and any extraordinary efforts beyond routine duties.
Helpful Hints
- File your commission petition promptly to avoid missing deadlines under Ala. Code §43-2-70.
- Attach formal appraisals and sales contracts to support claimed values.
- Keep detailed service logs and time records to justify your request.
- Review local probate court rules for specific filing procedures.
- Consider settlement talks or mediation if beneficiaries dispute your commission.
- Understand that the court may adjust statutory rates based on case-specific factors.