Disclaimer
This article is for informational purposes only and does not constitute legal advice. Always consult a qualified attorney for guidance on your specific situation.
Detailed Answer
Under Massachusetts law, a personal representative—often called an executor or administrator—may seek compensation for managing and distributing estate assets, including sale proceeds. The relevant statute provides for statutory commissions and, in certain cases, fees for extraordinary services.
Statutory Commission
The probate code sets default commission rates based on the gross value of the probate estate. Under M.G.L. c.190B §5-615(a)(2), the court may allow compensation as follows:
- 4% on the first $200,000
- 3% on the next $800,000
- 2% on the next $9,000,000
- 1% on the next $15,000,000
- 0.5% on the balance
These percentages apply to the total value of estate assets, including real estate, personal property, and sale proceeds realized during administration. Commissions are calculated on the gross amount before deducting expenses.
Extraordinary Services
If administration involves unusually complex or time-consuming tasks, the representative can petition for additional compensation. Under M.G.L. c.190B §5-615(a)(3), the court considers:
- Time and labor required
- Difficulty and skill involved
- Responsibility assumed
- Results achieved
Election for Hourly Fees
In lieu of statutory percentages, a personal representative may choose compensation based on hourly rates under M.G.L. c.190B §5-615(a)(1). The court evaluates the reasonableness of both the rate and time expended.
Court Approval and Notice
All compensation requests—statutory, extraordinary, or hourly—require a petition to the Probate Court and notice to beneficiaries. The court reviews submitted accounts and may adjust fees to ensure they are fair and appropriate.
Helpful Hints
- Keep detailed time and expense records to support any fee request.
- Provide clear notice to all beneficiaries before filing a petition for compensation.
- Compare the total under statutory commissions versus hourly billing before deciding.
- Seek professional advice if the estate involves unusual assets or contested claims.
- File fee petitions in the Probate Court with jurisdiction over the decedent’s estate.