Disclaimer: This article is for educational purposes only and does not constitute legal advice. Always consult a licensed attorney in North Dakota for advice specific to your situation.
Detailed Answer
Under North Dakota law, a personal representative (executor or administrator) may request reasonable compensation for services performed in administering an estate. North Dakota Century Code (NDCC) Chapter 30.1-19 governs this process:
- Statutory Authority: NDCC § 30.1-19-05 allows a personal representative to petition the court for an allowance of compensation that the court finds “just and reasonable.”
NDCC 30.1-19-05 - Factors Considered: In setting compensation, the court looks at the estate’s size and complexity, time spent, skill required, and any unusual responsibilities.
NDCC 30.1-19-06 - Commissions on Sales: While North Dakota does not establish a fixed percentage commission, courts may approve a commission on asset values or sale proceeds if it reflects reasonable compensation. For example, if an estate includes real estate sold at $300,000, the court might allow a 1–3% commission on that sale, subject to its review of the services performed and the estate’s needs.
- Will Provisions: If the decedent’s will specifies a fee or percentage, the court generally honors that direction unless it finds it unreasonable.
NDCC 30.1-19-04 - Court Approval: All compensation requests require court approval. The personal representative must file a petition detailing hours worked, tasks performed (e.g., valuing assets, paying debts, distributing property), and any out-of-pocket expenses.
How It Works: A Hypothetical
Jane Doe is appointed personal representative of her mother’s $500,000 estate in Cass County, North Dakota. She sells the family home for $200,000. Jane documents 40 hours of work (appraising assets, filing tax returns, managing creditors) and incurs $500 in court costs. She petitions the court under NDCC § 30.1-19-05, requesting a 2% commission on the home sale ($4,000) plus a reasonable hourly fee of $150/hour for 40 hours ($6,000), and reimbursement of expenses. The court reviews Jane’s records, deems the total reasonable, and issues an order approving her fees and reimbursement.
Helpful Hints
- Document all services: Keep detailed records of time, tasks, and expenses.
- Check the will: Look for any fee provisions that override statutory procedures.
- File a clear petition: Outline your compensation request with citations to NDCC Chapter 30.1-19.
- Stay transparent: Provide beneficiaries with a copy of your fee petition to avoid disputes.
- Consult counsel: An attorney familiar with ND probate can help draft and support your fee request.