Detailed Answer
Under New Mexico law, a personal representative (sometimes called an executor or administrator) may seek reasonable compensation, including commissions on estate assets and sale proceeds. New Mexico Statutes Annotated § 45-3-6 authorizes the probate court to approve “reasonable compensation” for a personal representative. NMSA 1978, § 45-3-6.
Although the statute does not prescribe a fixed percentage schedule, many courts use general guidelines such as 3% on gross assets collected and 2% on gross disbursements. When you sell estate property, the sale proceeds count as receipts. You may include a commission request on those proceeds in your final accounting.
To secure a commission, you must:
- File an inventory of estate assets and a schedule of proposed sales with the court.
- Serve beneficiaries and interested parties with your proposed accounting and fee request.
- Attend a court hearing, if required, to justify the compensation based on factors like estate size, complexity, time invested, and results achieved.
- Obtain a court order approving the commission before you distribute funds.
Example: Imagine you collect $400,000 in estate assets and later sell a parcel of real estate for $200,000. You might petition for a 3% commission on the initial $400,000 and a 3% commission on the $200,000 sale proceeds, equaling $18,000 in total commissions (subject to court approval).
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Always consult a qualified New Mexico attorney to discuss your specific situation.
Helpful Hints
- Review your county’s local probate rules; some counties publish recommended commission schedules.
- Keep detailed time records and expense receipts to support your fee petition.
- Notify all beneficiaries well before the hearing to avoid objections that can delay approval.
- Consider a modest fee request for straightforward estates to reduce the risk of court reductions.
- Ask the court about required forms and deadlines for fee applications in your jurisdiction.