Detailed Answer
Under Pennsylvania law, a personal representative (executor or administrator) may receive commissions for managing and distributing an estate. The statutory authority is found in 20 Pa.C.S. § 307, which sets standard commission rates based on the distributable estate value.
Statutory Commission Rates
- 5% on the first $30,000
- 3% on the next $70,000
- 2% on amounts exceeding $100,000
Inclusion of Sale Proceeds
Proceeds from the sale of real or personal property form part of the distributable estate. Commissions apply to the aggregate estate value, including sale proceeds. There is no separate “sale commission” beyond the statutory percentages.
Waiver and Court Approval
A will can waive or limit commissions. If the decedent expressly waives statutory commissions, the personal representative must petition the Orphans’ Court for approval of any fee. The court may grant additional compensation for extraordinary services—such as complex asset management or litigation—under 20 Pa.C.S. § 705.
Practical Steps
To claim commissions, file the appropriate petition and account with the Orphans’ Court. Provide an inventory of assets, sales records, and an accounting of distributions. Notify beneficiaries and allow them to object if needed.
Helpful Hints
- Review the will for any commission waivers.
- Keep detailed records of asset sales and distributions.
- Consult the Orphans’ Court rules in your county.
- Consider extraordinary compensation if administration involves litigation.
- File your petition early to avoid delays in estate closing.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.