Detailed Answer
Under Texas law, a personal representative (executor or administrator) may receive statutory compensation—commonly called a commission—on both the value of estate assets and on sale proceeds generated during administration. These commissions are set by the Texas Estates Code and do not require proof of actual time or effort.
1. Commission on Estate Assets
Texas Estates Code Chapter 352 establishes the commission rates for estates based on total value:
- For estates valued at $50,000 or less: 5% of the gross estate value. (Tex. Est. Code § 352.102)
- For estates valued at more than $50,000: tiered commissions apply. (Tex. Est. Code § 352.101)
- 5% on the first $50,000
- 4% on the next $50,000
- 3% on the next $900,000
- 2% on the next $9,000,000
- 1% on amounts over $10,000,000
2. Commission on Sale Proceeds
If the personal representative is appointed under independent administration, Texas Estates Code § 355.051 entitles them to 2.5% of the gross sales price of any property they sell as part of estate administration. (Tex. Est. Code § 355.051)
Under dependent administration, the court must approve any sale and the commission rate may be set by the judge, often mirroring the statutory rates for independent administrators.
3. Court Approval and Reporting
While statutory rates apply automatically, the court may review or adjust commissions if beneficiaries object or if the administration is contested. All commissions must be detailed in the personal representative's final accounting, which requires court or beneficiary approval before distribution.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a qualified attorney about your specific situation.
Helpful Hints
- Verify whether your administration is independent or dependent—that affects your authority to sell assets and charge sales commissions.
- Keep detailed records of asset values at probate and all sale transactions.
- Review Texas Estates Code Chapters 352 and 355 for full details on commission structures.
- Discuss potential commission rates with beneficiaries early to avoid disputes.
- If the estate is complex or beneficiaries object, seek court approval before taking commissions.
- Consult a probate attorney if questions arise—this ensures compliance with all statutory requirements.