Detailed Answer
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Under Delaware law, a personal representative (formerly called an executor or administrator) is entitled to statutory commissions based on the value of estate assets and sale proceeds coming into the estate. These commissions compensate the personal representative for ordinary duties such as collecting assets, preserving property, paying debts, and distributing the remaining estate.
Statutory Commission Rates
Delaware Code Title 12, Section 3703 sets the default commission schedule. Commissions are calculated on the gross receipts of the estate—this includes sale proceeds when assets are liquidated rather than their original inventory value. The rates are:
- 2.5% on the first $200,000 of gross receipts
- 2% on the next $300,000
- 1.5% on the next $500,000
- 1% on the next $1,000,000
- 0.5% on amounts exceeding $2,000,000
See 12 Del. C. § 3703: delcode.delaware.gov/title12/c003/sc02/.
Application to Sale Proceeds
If the personal representative sells real estate or other assets, the commission applies to the actual sale proceeds. The gross receipts figure reported on the final accounting reflects the money received, not the pre-sale appraised value. The representative cannot claim a commission on both the original valuation and the sale—only on the amount received.
Extraordinary or Additional Compensation
When a personal representative performs services beyond ordinary duties—such as litigation, business operations, or complex asset management—the register of wills or court may allow additional compensation. This falls under 12 Del. C. § 3715: delcode.delaware.gov/title12/c003/sc05/.
Procedure to Seek Commission
- File an inventory and initial accounting with the Register of Wills.
- Include a petition or notice for allowance of commissions based on the gross receipts.
- Notify interested parties (heirs, beneficiaries, and creditors).
- Obtain the register’s order approving commissions or, if contested, seek a court hearing.
Helpful Hints
- Keep detailed records of all receipts and disbursements; commissions tie directly to the gross receipts reported.
- Understand that sale proceeds replace inventory values for commission purposes—do not double-count.
- Explore additional compensation under 12 Del. C. § 3715 if your duties exceed routine estate administration.
- Serve formal notice to beneficiaries and creditors when petitioning for commissions to avoid objections or delays.
- Consider consulting an estate administration attorney to ensure compliance with Delaware probate procedures.