Detailed Answer
Under Minnesota law, a personal representative may request compensation from the estate by way of commissions on both receipts and disbursements under Minn. Stat. §524.3-718. “Receipts” include all property received by the estate, including sale proceeds. “Disbursements” encompass debts paid, taxes, and estate expenses.
Statutory Commission Rates:
- 5% on the first $100,000 of receipts
- 3% on the next $150,000 of receipts
- 2% on receipts over $250,000
- 5% on the first $100,000 of disbursements
- 3% on the next $150,000 of disbursements
- 2% on disbursements over $250,000
These rates apply equally to sale proceeds when assets convert to cash. To obtain commissions, the personal representative must petition the probate court for approval. The court evaluates factors such as the estate’s size, complexity, time and skill required, and customary rates in the community.
If the statutory schedule does not adequately reflect the work performed, the court may award reasonable compensation under the same statute, including hourly or flat fees. A will or a decedent’s written agreement can set a different fee structure if the court finds it reasonable.
In practice, the personal representative submits a petition for final accounting and fee approval. Once approved, the court issues an order, and the fees are paid from estate assets.
Helpful Hints
- Review the decedent’s will for any compensation provisions.
- Keep detailed records of all estate transactions and time spent.
- Compare proposed fees with local probate attorney rates.
- Communicate proposed fees to beneficiaries early to minimize objections.
- Consider alternative fee arrangements if the estate involves unique assets or extensive administration.
Disclaimer: This article is for informational purposes and does not constitute legal advice. Consult a Minnesota probate attorney for guidance specific to your situation.