A Guide to How Personal Representatives Are Paid in a California Probate
Navigating probate can be complex, especially when it comes to the financial aspects. A common question we get as probate attorneys is, “How are personal representatives paid during probate?” In California, the fees paid to personal representatives are governed by specific statutes and regulations. This article discusses how personal representatives are compensated during the probate process.
Fees Paid To Personal Representatives in a California Probate
In California, personal representatives, also called executors or administrators are entitled to compensation for their ordinary services. If a decedent left a Will, the executor will be named in the Will. This is the person who the probate court appoints to serve as personal representative. On the other hand, if the deceased did not leave behind a Will or the Will does not name the executor, the probate court will appoint an administrator to serve as personal representative.
So, what are ordinary services? Ordinary services of the personal representative include, among others;
- Gathering and managing estate assets
- Settling creditor claims
- Locating beneficiaries and heirs
- Distributing assets to beneficiaries or heirs
- Preparing the estate’s financial accounting
The fees for ordinary services are set by statute. This means they are not defined by an agreement between the personal representative and the estate, but are instead predefined by law. How much a personal representative is paid for ordinary services depends on the value of the decedent’s estate as accounted for by them. According to California Probate Code section 10800, the following is the statutory fee structure for personal representatives in California;
- 4% on the initial 100,000 dollars
- 3% on the subsequent 100,000 dollars
- 2% on the following 800,000 dollars
- 1% on the next 9 million dollars
- 5% on the next 15 million dollars
According to the law, for any amount over 25 million dollars, the court is required to determine a reasonable amount of payment. It is vital to note that if the personal representative and a beneficiary or heir agree on a higher compensation than what the law states, the agreement is considered void. In addition to the fees listed above, if a personal representative performs extraordinary services such as selling real estate, performing ancillary administration, defending a contested Will, managing the deceased’s business, or handling complex tax issues, the court may allow additional compensation in an amount it deems just and reasonable.
What if There Are Multiple Personal Representatives?
Sometimes, there is more than one personal representative. In such a case, the personal representatives may wonder if they each receive the full statutory fee. In a case where there is more than one personal representative, the statutory fee is divided among the representatives based on the actual services each one performs, or as they agree among themselves. This is according to California Probate Code section 10805.
Contact The Probate Guy for Legal Help
If you have questions or concerns or need help with the probate process, contact the dedicated California probate attorney, Robert L. Cohen – The Probate Guy – today to schedule a telephonic consultation.
Southern California Probate Lawyer Serving Orange, Riverside, Anaheim, Whittier & Beyond.
Source:
leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=10800.&lawCode=PROB
