Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
1. Who Is a Personal Representative?
In New Hampshire, a personal representative (also called an executor or administrator) manages an estate after someone dies. Duties include collecting assets, paying debts and taxes, and distributing remaining property to beneficiaries.
2. Statutory Commissions Under RSA Chapter 556
New Hampshire law sets out specific commission rates for personal representatives. Key provisions appear in:
- RSA 556:4 (Inventory and Appraisement Fees): Allows a commission for preparing an inventory and appraisal of estate assets.
- RSA 556:5 (Allowance for General Commissions): Provides a commission on receipts and disbursements during administration.
- RSA 556:3 (Extraordinary Services): Permits the court to award additional compensation for services beyond standard administration (e.g., contested matters, complex assets).
Typically, commissions are calculated as a percentage of estate receipts and disbursements. The exact percentage tiers are detailed in RSA 556:4–556:5. The personal representative files a petition with the Probate Court and the court issues an order allowing the commission.
3. Commissions on Sale Proceeds
When estate assets—such as real estate or business interests—are sold, the sale proceeds become estate receipts. The personal representative’s commission normally applies to those proceeds under RSA 556:5. If the sale requires extraordinary effort—such as marketing, litigation to clear title, or managing a business—then additional compensation may be approved under RSA 556:3.
4. Court Approval and Accounting
A personal representative must submit an accounting that lists all assets, receipts (including sale proceeds), expenses, and distributions. The proposed commission appears in that accounting. Beneficiaries may review and object. The Probate Court holds a hearing if there are objections. Once approved, the commission becomes a charge against the estate before distributions.
Helpful Hints
- Review RSA 556:4–556:5 on the New Hampshire General Court website to understand the exact commission tiers.
- Keep detailed records of time and expenses—this helps justify requests for extra compensation under RSA 556:3.
- Consult beneficiaries early if you anticipate an objection to commissions or fees.
- Consider informal mediation if disputes arise over the amount of commission.
- If the estate is small, you may waive commission in favor of a flat fee or nominal payment.