Detailed Answer
Under Michigan law, a personal representative may receive commissions for services performed in administering an estate. Michigan’s Estates and Protected Individuals Code (EPIC) sets standard commission rates in MCL 700.3914. These “statutory commissions” apply to the gross value of probate estate assets and to the proceeds from their sale.
Standard Rates: MCL 700.3914 authorizes commissions as follows:
- 3% on the first $100,000
- 2% on the next $100,000
- 1% on the next $800,000
- 0.5% on amounts over $1,000,000
If the personal representative sells real or personal property, they may charge an agent’s commission at the rate similar professionals charge in the community. See MCL 700.3914(4). The personal representative must document actual sales efforts and fees.
Modifying Commissions: A probate court may adjust statutory commissions if they are unreasonably high or low. Under MCL 700.3915, interested parties may petition to increase or reduce fees based on the estate’s complexity, duration, and tasks performed.
Procedure: To claim commissions, the personal representative files an inventory and account with the probate court. The court reviews fee requests at the closing hearing. Interested parties may object within 28 days of notice.
Disclaimer
This article provides general information only. It does not constitute legal advice. Consult a qualified probate attorney to address your specific situation.
Helpful Hints
- Review MCL 700.3914 to understand statutory commission rates.
- Keep detailed records of time, tasks, and expenses when requesting fees.
- Provide clear notice to heirs and beneficiaries when filing fee applications.
- Obtain professional appraisals to determine fair value of estate assets.
- If heirs dispute fees, consider mediation or seek court guidance promptly.