Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
Under Arizona law, a personal representative may receive statutory commissions on estate assets, including sale proceeds. Arizona Revised Statutes (A.R.S. § 14-21504) sets presumptive commission rates for domestic administrations. These commissions apply to all principal funds that the personal representative collects or distributes.
Arizona uses the following statutory rates for basic administrations:
- 2% of the first $500,000 of principal
- 1.5% of the next $500,000
- 1% of any amount exceeding $1 million
The court can adjust these rates based on the estate’s size, complexity and the quality of service. Sale proceeds count as principal receipts. For example, if the personal representative sells estate property for $600,000, they may earn $10,000 (2% of $500,000) plus $1,500 (1.5% of $100,000), totaling $11,500.
To obtain commissions, the personal representative files a petition and proposed final account with the probate court, cites A.R.S. § 14-21504, and requests approval. After notice to beneficiaries and a court hearing, the judge issues an order setting the commission amount.
Helpful Hints
- Understand the difference between personal representative commissions and professional fees charged by attorneys or appraisers.
- Keep detailed records of all receipts and disbursements, including sale documents and closing statements.
- Calculate commissions using statutory rates before filing your petition with the court.
- Document any complex tasks or extraordinary services to support a request for higher‐than‐presumptive commissions.
- Consult a probate attorney if you plan to request commissions beyond statutory limits or if beneficiaries object to your request.