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Personal Representative Compensation

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

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Personal Representative Compensation

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  1. Personal RepresentativeCompensation

  2. Prerequisite to Compensation • Court must determine PR managed the estate in compliance with the Code. • PC § 241 • EC § 352.002

  3. Default Compensation • Inclusions: • 5% of sums received in cash • Sold assets to raise money to pay debtsplus • 5% of sums paid out in cash • Paid debts

  4. Default Compensation • Exclusions: • Cash on hand • Payments to heirs and beneficiaries • Collecting bank accounts, CDs, etc. • Collecting life insurance proceeds

  5. Default Compensation • Limitation: • Total compensation cannot exceed 5% of the gross fair market value of the estate.

  6. 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.”

  7. Default Compensation • Exceptions (court may grant less compensation): • PC § 241 • EC § 352.004 • PR failed to manage estate prudently. • PR removed from office.

  8. Amount set by will • Testator can determine amount: • No compensation • A flat fee • A “reasonable” fee • A method for determining the fee

  9. Cases • Stanley v. Henderson (p. 167) • Lee v. Lee (p. 169) • Brown v. Traylor (p. 178)

  10. PR and Att0rney as same person

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