Detailed Answer
Under California law, a personal representative (formerly called an executor or administrator) may request a statutory commission on all estate assets and on the gross proceeds from any sales. These commissions serve as compensation for managing estate affairs, including collecting assets, paying debts, and distributing property to beneficiaries.
Statutory Authority
California Probate Code §10810 establishes the basic commission rates:
- 4% on the first $100,000 of all sums paid or applied
- 3% on the next $100,000
- 2% on the next $800,000
- 1% on the balance
See Probate Code §10810 for full text.
Commission on Sales of Assets
When a representative sells estate property, they may take a commission based on the gross sale price rather than the appraised value. California Probate Code §10811 allows:
- 2.5% of the gross sale price if the personal representative retains the property in their hands until sale (e.g., real estate).
- 1.25% of the gross sale price when the representative passes money from a sale to a beneficiary.
See Probate Code §10811 for details.
Procedure
To receive commissions, the personal representative files a petition with the probate court at or before the final accounting. Beneficiaries receive notice and may object within 15 days. If no objection is filed, the court generally approves the statutory fee automatically. Any deviation (higher or lower fee) requires court approval based on reasonableness.
Waiver and Special Commissions
Beneficiaries can waive statutory commissions in writing. Alternatively, a representative may petition for special compensation under Probate Code §10814 for extraordinary services beyond ordinary administration (e.g., tax litigation, complex asset management).
Hypothetical Example
Jane Doe is appointed personal representative of her father’s $600,000 estate. She sells the family home for $400,000 and collects $200,000 in bank accounts and investments. Under §10810, Jane would be entitled to a commission of $4,000 (4% of $100,000) + $3,000 (3% of next $100,000) + $8,000 (2% of next $400,000) = $15,000. She may also calculate a 2.5% commission on the $400,000 sale price under §10811 if electing the sale-based rate.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance specific to your situation.
Helpful Hints
- Review the estate’s inventory before calculating commissions to verify asset values.
- File your petition for commissions early in the probate process to avoid delays.
- Provide clear notice of your petition to all heirs and beneficiaries.
- Consider whether beneficiaries would approve special compensation for extra work.
- Maintain detailed records of services performed to support any petition for fees above the statutory rate.