Disclaimer: This article provides general information and is not legal advice. Consult a qualified attorney to discuss your specific situation.
Detailed Answer
Under Maryland law, a personal representative (formerly known as an executor or administrator) may claim a statutory commission for services performed in administering an estate. The commission schedule appears in Maryland Code, Estates and Trusts Article § 8-102. A personal representative qualifies for a commission on both the value of estate assets and the net proceeds from the sale of those assets.
Statutory Commission Schedule (§ 8-102)
• 2.5% on the first $200,000 of the gross estate value
• 2% on the next $400,000 of the gross estate value
• 1.5% on the balance exceeding $600,000
For example, if an estate’s total assets equal $800,000 and the personal representative sells real property for $300,000, the commission calculation includes:
- 2.5% of the first $200,000
- 2% of the next $400,000
- 1.5% of the remaining $200,000
- Commission on the $300,000 sale proceeds is included as part of the gross estate value subject to this schedule
See the full statute here: Md. Est. & Trusts § 8-102.
If the personal representative performs extraordinary services beyond ordinary administration—such as litigating complex will contests or managing a business—Maryland Code, Estates and Trusts Article § 8-104 allows for additional compensation. The personal representative must petition the court and provide detailed billing records to justify extra fees.
When claiming any commission, the personal representative must file an inventory and account with the Orphans’ Court. Interested parties may approve or challenge the requested commission. If contested, the court will hold a hearing to determine a reasonable fee.
Helpful Hints
- Begin by reviewing the estate’s asset inventory to calculate potential commission.
- Keep detailed records of all estate transactions and time spent on administration tasks.
- File timely accountings and notices with the Orphans’ Court to avoid objections based on procedural grounds.
- Consult Md. Est. & Trusts § 8-104 before seeking extraordinary compensation for specialized services.
- Discuss any disputes over commission with beneficiaries early to prevent delays and litigation.