Disclaimer: This article provides general information on Tennessee law and does not constitute legal advice. Consult a qualified Tennessee attorney for guidance tailored to your situation.
Detailed Answer
Under Tennessee law, a personal representative (executor or administrator) is entitled to reasonable compensation for services rendered in the administration of an estate. The probate code sets a statutory commission schedule, which is based on the value of assets that come into the representative’s possession, including proceeds from any property sales.
The primary statute is Tenn. Code Ann. § 30-1-305. It prescribes a sliding-scale commission on the gross value of estate assets received by the personal representative. Unless the court orders otherwise, the commission rates are:
- 5% on the first $100,000;
- 4% on the next $400,000;
- 3% on the next $500,000;
- 2% on the next $2,000,000;
- 1% on any amount over $3,000,000.
These percentages apply to the gross value of all assets, including cash, securities, real estate, and sale proceeds at the time they are received. For example, if a personal representative sells real property for $200,000, the full sale proceeds count toward the estate’s gross value when calculating commissions.
The court may approve an alternative hourly fee arrangement or adjust compensation for extraordinary services, such as complex litigation or tax work. To seek a court-approved increase, the personal representative may petition under § 30-1-305(c)–(e). The petition must detail the nature of extra services and the time spent.
At the conclusion of administration, the personal representative files a petition for final settlement under Tenn. Code Ann. § 30-1-307. The probate court reviews the accounting, including commissions, and enters an order approving the personal representative’s compensation.
Helpful Hints
- Maintain detailed records of assets received and sold, and of all services performed.
- Review the sliding-scale commission schedule early in administration to estimate fees.
- Discuss compensation arrangements with beneficiaries to avoid disputes.
- If administration involves complex tasks, consider requesting court approval for extraordinary compensation.
- File the petition for final settlement promptly to secure approval of commissions.