Detailed Answer
Under Kentucky law, a personal representative may request statutory commissions on estate assets and proceeds from estate property sales. Kentucky Revised Statutes (KRS) 395.020 authorizes the court to allow a commission for services rendered in administering an estate. Specifically, the statute permits:
- Five percent (5%) on the first $50,000 of personal property plus three percent (3%) on the balance.
- Two and a half percent (2.5%) on the first $50,000 of real property plus one percent (1%) on the balance.
These commissions apply to the fair market value of assets at the time of appointment. When the personal representative sells estate property, they typically calculate their commission based on the value listed in the inventory, not the actual sale price. However, if the sale price substantially exceeds or falls below the inventory value, the court may adjust the commission to reflect the fair value of the property sold.
For services beyond routine administration—such as complex litigation, tax reporting, or prolonged asset management—the personal representative may petition for an additional allowance under KRS 395.020(2). This petition must include details of the extraordinary effort and may result in higher fees if the court finds them reasonable.
Process to Seek Commissions:
- File an inventory and valuation of all estate assets with the probate court.
- Include a petition for statutory commissions and any request for extraordinary allowances.
- Serve notice on all beneficiaries and interested parties.
- Attend a hearing if beneficiaries object or if the court requests clarification.
- Upon approval, commissions will be paid from estate proceeds prior to distribution.
For full text of the statute, see KRS 395.020.
Helpful Hints
- Prepare a detailed asset inventory early to avoid valuation disputes.
- Obtain professional appraisals for real property to support your valuation.
- Communicate clearly with beneficiaries about commission calculations.
- Document all extraordinary tasks before petitioning for additional allowances.
- File petitions promptly and serve proper notice to prevent delays.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified Kentucky attorney regarding your specific situation.