Disclaimer: This article is for informational purposes only and does not constitute legal advice. Please consult a qualified attorney about your situation.
Detailed Answer
In Maine, personal representatives (also known as executors or administrators) can receive compensation for administering an estate. Maine’s probate code (Title 18-C M.R.S. §§3-702 to 3-707) provides two primary methods of compensation: statutory commissions and court-approved fees or hourly rates.
1. Statutory Commission Method
Under 18-C M.R.S. §3-703, a personal representative may elect to receive commissions based on:
- Gross Estate Value: A percentage commission on the total value of estate assets at the time of appointment.
- Income Receipts: A commission on all income received by the estate during administration.
- Sale Proceeds: A commission on the gross proceeds from the sale of estate assets.
The specific commission rates are set by the probate court according to statutory guidelines. See the full text at 18-C M.R.S. §3-703.
2. Court-Approved Reasonable Compensation
If the personal representative does not elect statutory commissions or if the court finds those commissions unreasonable, the court may award “reasonable compensation” under 18-C M.R.S. §3-702. Factors include estate size, complexity, time spent, and services performed. See details at 18-C M.R.S. §3-702.
3. Alternative Fee Arrangements
Personal representatives may petition the court under 18-C M.R.S. §3-707 for hourly rates or flat fees, especially in complex estates. The court will approve fees that it deems reasonable. For reference, see 18-C M.R.S. §3-707.
Helpful Hints
- Election Deadline: File a written election for statutory commissions early, typically with the first account filed.
- Detailed Records: Track time and tasks if you plan to seek reasonable compensation.
- Compare Options: Evaluate commission vs hourly fees based on estate complexity.
- Will Provisions: Review the decedent’s will for any specific compensation instructions.
- Beneficiary Objections: Be ready to petition the court if beneficiaries challenge your compensation.
- Tax Implications: Estate compensation is taxable income; consult a tax professional.