Last Will and Testament: What Does the Personal Representative Get?
The personal representative is also referred to as the executor of the estate. She is usually appointed by the testator or creator of the will. While the personal representative does receive financial compensation for her services, this amount varies from one state to another as well as being dependent upon the circumstances.
Is There a Last Will and Testament?
If a last will and testament exists, then it should be checked to see what it indicates for the personal representative's fee. It should provide either an exact amount, a percentage of the estate, a reference to the state's guidelines, or a specific bequest in lieu of payment.
What Do State Laws Indicate Personal Representative Fees Should Be?
If the will indicates that the fee will be paid according to state law, then the fee should be calculated accordingly. In some states, this will be a product of a percentage value and the gross value of the estate. In other states, the value of the fee is determined by the probate court.
How Many Personal Representatives Have Been Named?
If the last will indicates what the fees are for each personal representative, then these fees will be paid. If the will does not include any schedule of payment when more than one personal representative has been assigned, then the laws of the state of residence will come into play. In some states, the law requires that each fiduciary receive an identical sum that is taken from the fee typically paid to a single representative. In other states, each fiduciary is entitled to receive the full fee.
Is the Personal Representative an Individual or an Institution?
If an institution is listed as the personal representative, the fees that it receives can be calculated in accordance with one of two facets. If indicated within the will that the institution is to receive compensation according to its published fee schedule, then this is the way that the fee will be determined. If nothing has been stated within the will, then the state laws regarding this matter will be used to determine the institution's compensation.
Are "Extraordinary Fees" Involved?
Personal representatives are entitled to receive compensation for "extraordinary fees" even if the state law has specified a specific percentage of the gross estate as the normal fee. Extraordinary fees can include unexpected costs due to the necessity of conducting litigation on the estate's behalf, proceedings related to tax disputes, overseeing the sale of personal property, and defending litigation on the estate's behalf.
Has the Personal Representative Incurred Out-of-Pocket Costs?
The personal representative is entitled to receive reimbursement in full for any out-of-pocket costs that he has paid in the issuance of his duties. These expenses can include one or more of the following expenses that he incurred while administering the estate: travel expenses, gas, postage, and other similar expenses. It might also include any expenses that had to be paid for the decedent's estate prior to the money being accessible from the estate. These expenses include: utilities, insurance, property taxes, doctor bills, funeral expenses, storage fees, property taxes, and other similar expenses.
Is There an Agreement Among the Beneficiaries Regarding the Fee?
Even though the will might include a listed fee for the personal representative, it is also permissible for the beneficiaries to come to an agreement over the fee. This can occur even when state laws indicate a different fee schedule than that suggested by the beneficiaries. Typically, this arrangement is made early on or at the end of the probate process.
