Detailed Answer
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Under Georgia law, a personal representative (executor or administrator) may receive statutory commissions both on estate assets when taking possession and on sale proceeds when converting those assets to cash. These commissions serve as compensation for the time and effort of administering an estate.
Statutory Authority
Georgia statutes set a tiered commission schedule in O.C.G.A. § 53-6-1. That section provides two separate categories of compensation:
- Commissions on property obtained by virtue of appointment (the value of assets at inventory).
- Commissions on money in hand or on deposit, including money obtained from sale or conversion of estate property.
Each category uses the same percentage tiers:
- 2.5% of the first $200,000
- 2% of the next $300,000
- 1.5% of the next $500,000
- 1% of any amount over $1,000,000
See O.C.G.A. § 53-6-1: https://law.justia.com/codes/georgia/2010/title-53/chapter-6/article-1/section-53-6-1/
How It Works in Practice
1. Inventory Value: When the personal representative files the initial inventory with the probate court, they calculate commissions on the fair market value of all estate assets on hand. For example, if the estate’s real property, bank accounts, and personal property total $500,000, the representative’s commission on that inventory equals:
- 2.5% of the first $200,000 = $5,000
- 2% of the next $300,000 = $6,000
- Total commission on inventory = $11,000
2. Sale Proceeds: If the representative sells estate assets—such as real estate or stocks—they also compute the commission on the gross proceeds of those sales using the same tiered schedule. If that sale generates $300,000, commissions on sale proceeds equal:
- 2.5% of the first $200,000 = $5,000
- 2% of the next $100,000 = $2,000
- Total commission on sale proceeds = $7,000
3. Petition for Allowance: To receive compensation, the personal representative must file a petition with the probate court at the time of final accounting. The court reviews the calculation and approves the commissions unless the will specifies a different compensation method or the court finds the requested amount unreasonable.
When Commissions May Be Modified or Waived
- Will Provisions: A decedent’s will can set a fixed fee or waive commissions entirely.
- Court Discretion: If the estate involves unusual complexity, disputes, or extra duties, a court may award additional compensation beyond the statutory rate.
- Renunciation or Waiver: An heir or beneficiary may agree to waive the personal representative’s commission.
Always review the will and Georgia probate statutes when calculating representative fees. Court approval is essential before any commissions are paid from estate funds.
Helpful Hints
- Keep detailed records of time spent and tasks completed to support fee petitions.
- File inventories and accountings promptly to avoid delays in commission allowance.
- Compare statutory commissions with the complexity of the estate to consider requesting additional compensation if warranted.
- Review O.C.G.A. § 53-6-1 early in the administration process to set expectations.
- Consider consulting a probate attorney to prepare your petition and ensure compliance with court rules.