Can a personal representative seek a commission on estate assets and sale proceeds? (NY)

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Disclaimer: This article is for informational purposes and does not constitute legal advice.

Detailed Answer

Under New York law, a personal representative (executor or administrator) may recover statutory commissions for administering an estate. The key statute is New York Estates, Powers & Trusts Law (EPTL) § 2309.

Statutory Commissions

  • On Gross Estate at Death: Commissions range from 5% on the first $100,000 down to 1.5% on amounts above $20 million (EPTL § 2309(1)).
  • On Receipts and Disbursements: The same percentage schedule applies to all money collected and paid out during administration (EPTL § 2309(2)).
  • On Dispositions of Assets: An additional 1% commission on the gross sale price of any estate property sold, exchanged, or otherwise disposed of (EPTL § 2309(3)).

Hypothetical Example

Imagine an estate with $500,000 in assets at death and a real estate sale of $300,000 during administration:

  • 5% of first $100,000 = $5,000
  • 4% of next $200,000 = $8,000
  • 3% of remaining $200,000 = $6,000
  • Total on Estate: $19,000
  • Additional on Sale: 1% of $300,000 = $3,000
  • Grand Total: $22,000

Court-Approved Additional Fees

If statutory commissions do not fairly compensate the work performed, a personal representative can petition the surrogate’s court for extra fees under the Surrogate’s Court Procedure Act (SCPA) § 2307. See SCPA § 2307.

Practical Considerations

The will may modify or waive commissions. The court may adjust rates based on factors like estate size, complexity of administration, and duration of proceedings.

Helpful Hints

  • Review the will for any specific fee provisions or waivers.
  • Keep detailed records of time, tasks, and expenses to support any petition for additional compensation.
  • Discuss anticipated commissions with beneficiaries early to reduce disputes.
  • Consult a probate attorney for guidance tailored to your case.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.