Personal Representative

Compensation

Prerequisite to Compensation

Court must determine PR managed the estate in compliance with the Code. PC § 241 EC § 352.002

Default Compensation

Inclusions:

5% of sums received in cash▪ Sold assets to raise money to pay debts

plus

5% of sums paid out in cash▪ Paid debts

Default Compensation

Exclusions:

Cash on hand Payments to heirs and beneficiaries Collecting bank accounts, CDs, etc. Collecting life insurance proceeds

Default Compensation

Limitation:

Total compensation cannot exceed 5% of the gross fair market value of the estate.

Default Compensation

Exceptions (court may grant more than default compensation):▪ PC § 241▪ EC § 352.003

PR managing a business, farm, ranch, or factory.

Statutory compensation determined to be “unreasonably low.”

Default Compensation

Exceptions (court may grant less compensation):▪ PC § 241▪ EC § 352.004

PR failed to manage estate prudently.

PR removed from office.

Amount set by will

Testator can determine amount: No compensation A flat fee A “reasonable” fee A method for determining the fee

Cases

Stanley v. Henderson (p. 167)

Lee v. Lee (p. 169)

Brown v. Traylor (p. 178)

PR and Att0rney as same person