Disclaimer: This article is for educational purposes only and does not constitute legal advice. Always consult an attorney before taking action.
Detailed Answer
Under Wisconsin law, a personal representative (also known as an executor or administrator) may request compensation—commonly called a commission—for services in administering an estate. The statutory authority for awarding commissions is found at Wis. Stat. § 857.01.
1. Statutory Commission Rates
Wis. Stat. § 857.01(1) sets maximum commission rates based on the total amount of money collected or distributed by the personal representative. These rates apply to all estate funds, including sale proceeds of real or personal property:
- 3% on the first $20,000
- 2% on the next $80,000
- 1% on the next $200,000
- 0.5% on the next $700,000
- 0.25% on amounts exceeding $1,000,000
For example, if a personal representative collects $150,000 in sale proceeds, the commission equals 3% of $20,000 plus 2% of the remaining $130,000.
2. Petitioning the Court
The personal representative must file a petition with the probate court to approve the commission. The court evaluates factors such as the complexity of the estate, time spent, and results obtained. Under Wis. Stat. § 861.05, the court may adjust the commission above or below the statutory maximum if extraordinary circumstances justify it.
3. Reimbursement of Expenses
Separate from commissions, personal representatives may recover out-of-pocket expenses (e.g., appraisal fees, advertising costs). These expenses must be documented and approved by the court.
Helpful Hints
- Review Wis. Stat. § 857.01 before petitioning for a commission.
- Keep detailed records of time spent and tasks performed.
- Document all expenses with receipts and invoices.
- Include commission and expense requests in your final accounting.
- Communicate with beneficiaries early to minimize disputes.
- Consider consulting a probate attorney for complex estates or high-value assets.