when attorney fees are proper as a personal representative of small estate

As a general rule, attorney fees in the administration of an estate are not to be paid until the final account is prepared for filing. If the personal representative is delinquent in filing accounts, attorney fees for their counsel may even be denied.

Full Answer

Can an attorney collect fees as a personal representative?

Dec 13, 2018 · The timing of attorney fee payment is also covered by Sup. Rule 71. As a general rule, attorney fees in the administration of an estate are not to be paid until the final account is prepared for filing. If the personal representative is delinquent in filing accounts, attorney fees for their counsel may even be denied.

Do I have to pay attorney fees in the administration of an estate?

May 28, 2020 · Some states have statutory fees. One is New York, which is much more generous than what I suggest above with the following fee schedule: First $100,000 is 5% Next $200,000 is 4% Next $700,000 is 3% Next $4,000,000 is 2.5% Remaining amounts greater than $5,000,000 is 2% In short, a reasonable charge depends on the circumstances and local practice.

Do attorneys charge a percentage of the estate's value?

Jul 29, 2019 · AVERAGE HOURLY FEES $250 - $310 Probate attorneys typically charge between $250 and $310 per hour to help with estate administration when they bill by the hour. FLAT FEE 32 % Nearly a third of readers said the estate paid a …

Can a probate court impose personal liability for attorney's fees?

Sep 26, 2019 · This personal representative is entitled to a fee for his or her work, and the Estate and Trust Statutes in Maryland, section 7-601 determine the rules for fees. For estates larger than $20,000, the personal representative can claim a fee of 9% of the estate’s value and an additional 3.6% of the value beyond $20,000 as compensation for the ...

How does a personal representative get paid in Florida?

(2) A commission computed on the compensable value of the estate is presumed to be reasonable compensation for a personal representative in formal administration as follows: (a) At the rate of 3 percent for the first $1 million. (b) At the rate of 2.5 percent for all above $1 million and not exceeding $5 million.

How much can an executor of an estate charge in Florida?

Executor Fees In Florida, executors are entitled to a percentage of the decedent's estate as compensation for their work. This starts at 3% of the first million dollars, 2.5% on the next four million dollars, and 2% on the next five million dollars.

What does a personal representative of an estate do in Florida?

The Duties of the Personal Representative in Florida Notifying all heirs and other interested parties that the will is being submitted to probate. Identifying and taking control of any estate assets. Filing tax returns and paying taxes. Paying creditors claims.Nov 16, 2020

How long does a personal representative have to settle an estate in Michigan?

Most Michigan probate cases can be wrapped up within seven months to a year after the personal representative is appointed. After notice of the probate is given, creditors have four months to file a claim. (Mich.

What is a reasonable trustee fee in Florida?

1% to 3%On average, trustee fees can range from 1% to 3% of the trust assets. For example, a 3% fee can be considered a reasonable fee for large and complex assets that can take years to administer.Mar 24, 2011

What is the normal fee for an executor of a will?

How much are executor fees? Executors can be paid a flat fee, an hourly rate, or a percentage based on the gross value of the estate. When the fees are based on the estate value, they are usually tiered — like 4% of the first $100,000 of the estate, 3% of the next $100,000, and so on.Jun 25, 2021

Are personal belongings part of an estate?

For most ordinary folk (me included) the cash value of their personal belongings ('chattels') is modest and will form but a tiny part of the overall value of an estate on death.Jul 30, 2018

How much does an estate have to be worth to go to probate in Florida?

$75,000Formal administration is the more involved variety of Florida probate. Formal administration is required for any estate with non-exempt assets valued at over $75,000 when a decedent died less than two years ago.Jan 2, 2022

Who may be a personal representative in Florida?

The personal representative can be an individual or a bank or trust company, subject to certain restrictions. To qualify to serve as a personal representative, an individual must be either a Florida resident or, regardless of residence, a spouse, sibling, parent, child, or other close relative of the decedent.

How much does an estate have to be worth to go to probate in Michigan?

Real Estate Probate – If a property is valued below $22,000, a spouse or any surviving heirs can petition a probate court to have the estate probated. For estates valued above $22,000 there is a formal supervised probate process which requires the appointment of a personal representative to distribute the estate.Dec 17, 2019

Can personal possessions be distributed before probate?

Probate law doesn't stipulate how personal items should be divided among beneficiaries unless they've been specifically named in the Will. Such things are called specific legacies. A mother, for example, might wish her eldest daughter to receive her wedding and engagement rings.Dec 31, 2021

Who owns a property during probate?

Probate assets include sole-ownership property, tenants-in-common property, or any other asset owned jointly without right of survivorship.

Question

As a named trustee, I believe my duties will be to liquidate property and other assets, file final taxes, and distribute the estates funds to the beneficiaries. If so, I am looking for guidance on a reasonable fee that should be charged to final out the estate. The trust is in Virginia.

Response

It sounds like you’re talking about serving as executor or personal representative as well as trustee. I can’t comment on Virginia in particular, and a lot can depend on the size of the estate, how much work is involved, and what other costs there may be, such as for legal and accounting fees. A good rule of thumb would be 1.5% of estate assets.

What expenses does the executor of an estate have to pay out of her own pocket?

The executor is entitled to be reimbursed for any estate administrative expenses she might pay out of her own pocket. These might include expenses that had to be paid before the estate could be opened for probate, such as doctor and funeral bills.

What is a personal representative?

The personal representative is the individual who is charged with guiding an estate through the probate process, and it can sometimes be a complicated and time-consuming job. How much they receive and when they'll be paid can depend on several factors.

Can executor fees be paid without a judge's order?

In other states, the executor's fee can only be paid after a court hearing and with a judge's approval. 4  The requirement for a hearing might be waived, however, if all the beneficiaries are informed of the fees to be paid and they sign consents to authorize payment without a judge's order. 17 .

Who is Ebony Howard?

She attended Duquesne University School of Law in Pittsburgh and received her J.D. in 1994. Ebony Howard is a certified public accountant and credentialed tax expert. She has been in the accounting, audit and tax profession for 13+ years.

Who is Julie Garber?

Julie Ann Garber is an estate planning and taxes expert. With over 25 years of experience as a lawyer and trust officer, Julie Ann has been quoted in The New York Times, the New York Post, Consumer Reports, Insurance News Net Magazine, and many other publications. She attended Duquesne University School of Law in Pittsburgh and received her J.D. in 1994.

Total Fees Charged by Estate Administration Lawyers

In our survey, more than a third of readers (34%) said that their lawyers received less than $2,500 in total for helping with estate administration. Total fees were between $2,500 and $5,000 for 20% of readers, while slightly more (23%) reported fees between $5,000 and $10,000.

How Lawyers Charge for Probate and Other Estate Administration Work

The total fees that estates paid for legal services were based on one of three types of fee arrangements charged by attorneys for probate and other estate administration work: hourly fees, flat fees, and fees based on a percentage of the estate’s value.

Free Consultation With Probate Lawyers

More than half (58%) of the probate attorneys in our national study reported that they offered free consultations. The typical time for these initial meetings was 30 minutes, though the overall average was higher (38 minutes).

How many hours does an estate attorney spend?

If he quotes you a $5,000 flat fee and he bills his time at $200 an hour, he expects that he and his firm will spend about 20 to 25 hours on your case. The general rule is that the higher an attorney's hourly rate, the more experience he has.

What does a set dollar amount cover?

A set dollar amount typically covers the initial meeting —if you end up retaining the attorney's services—as well as preparation of basic documents, review of documents, and signing of documents.

Do estate planning attorneys charge a fee?

Most estate planning attorneys don't charge a fee for the initial meeting, but this is by no means a universal rule. Don't be surprised if the attorney does charge a small fee for sitting down with you for the first time. It can go either way.

How long does a beneficiary have to withdraw a claim in Florida?

A beneficiary will have a 21 day period to withdraw claims that are the subject of a 57.105 motion, and an opportunity to avoid any risk of having to pay these fees. The Florida probate code also identifies several specific proceedings that can potentially expose a beneficiary to personal liability for attorney’s fees.

What is a charging lien?

In reversing the imposition of the charging lien, the appellate court explained: A charging lien “is an equitable right to have costs and fees due an attorney for services in the suit secured to him in the judgment or recovery in that particular suit.”.

What happens when fees are awarded?

In the following proceedings, if fees are awarded, fees can be secured by a judgment that can be satisfied from other property of the party: Elective share proceedings; Actions brought challenging spousal rights as procured by fraud, duress, and undue influence; Actions to declare gifts under will void;

Can a beneficiary be personally responsible for attorney fees in Florida?

Yes, a beneficiary can be personally responsible for attorney fees in estate litigation in Florida probate. The recent case of Lopez v. Hernandez, 2020 Fla. App. Lexis 2508 (5th DCA 2020), however, explains when fees cannot be awarded.

Can a beneficiary of a Florida probate estate be held personally liable for attorney fees?

A beneficiary of a Florida probate estate can be held personally liable for attorney’s fees in several situations. First, if a 57.105 motion was served and ultimately filed, a beneficiary can be held personally responsible for 1/2 of the attorney’s fees of the filing party if the court determines that the beneficiary knew or should have known ...

Can a personal representative be held responsible for attorney fees?

The Lopez case does not state that a personal representative cannot ever be responsible personally for attorney fees for engaging in litigation – and the case does not address how Ruben could have been held accountable for engaging in frivolous litigation. Ruben wore two hats – one as a beneficiary, and the other as a personal representative.

What is the Grimes case?

In the Grimes case, an expert was presented who relied on fee schedules to attempt to prove the reasonableness of the fees. The Court held that “there is no rule of law and no principal of right by which such commissions are to be charged or allowed without regard to the rendition of actual services therefore.”.

Why is Massachusetts case law so challenging?

Relying on Massachusetts case law to set fees is challenging because much of that case law is based on situations where the actions by the fiduciary were a detriment to the estate or trust.

What happens if you have multiple fiduciaries?

Finally, if multiple fiduciaries are serving, each is entitled to compensation in proportion to his or her services. Many of the cases involving fiduciary fees, including the cases mentioned above, involve the situation where the results obtained by the fiduciary were unfavorable to the trust or estate.

What is a fiduciary in Massachusetts?

For an attorney in Massachusetts, serving as a personal representative or trustee (“fiduciary”) for a trust or estate can be a rewarding and fulfilling role. However, there are numerous pitfalls for an attorney when setting and collecting his or her fees for serving as a fiduciary. The will or trust, as the case may be, ...

Is a fiduciary entitled to reasonable compensation?

However, the instrument often simply states that the fiduciary is entitled to reasonable compensation. If a will fails to address the issue of compensation, the Massachusetts Uniform Probate Code (“MUPC”) contains a default provision, which states that “ [a] personal representative is entitled to reasonable compensation for services.”.

Can an attorney act as a fiduciary?

An attorney acting as a fiduciary will get called on to perform many different tasks. In some cases, it would be more appropriate for the executor to hire someone to perform the work than to do it himself and charge his hourly rate.

Did the Corcoran case take into account commissions?

What is interesting to note about the Corcoran case is that the Court specifically did not take into account the general commissions paid to a real estate broker, despite the amount usually paid to others for similar work being one of the factors from McMahon.

What is estate administration?

Estate administration is about distributing assets to heirs and beneficiaries , yes. But that's the last step in the process, and must not be carried out until ALL other business is concluded: the period for creditors to make claims, payment of taxes, and payment of fees for services to the estate, and a final accounting to the probate court. If you distribute all of the estate's funds to heirs and beneficiaries, then discover that you are entitled to reimbursement or there is an outstanding unpaid bill for services to the estate, you will find it very difficult to reclaim the money from heirs who have received, and possibly spent, their distribution.

Why do you have to do probate?

Part of the reason for the probate process is to allow the personal representative to notify potential creditors of the deceased and give them time to come forward and make their claims against the estate. If you distribute any assets before the process for receiving creditor claims is completed, you may find that there is not enough money left in the estate to pay all legitimate claims. If that's the case, you may be exposed to personal liability for distributing the assets prematurely.

What is a personal representative?

As personal representative, you may be acting on behalf of the estate of a parent or spouse who chose you to do so, but you are acting only because the probate court has granted you authority. You are subject to the jurisdiction of the probate court, which means the court has power to order you to do something.

What to do if Uncle Joe has a child out of wedlock?

This is usually routine, but can be touchy, say, if Uncle Joe had a child out of wedlock who was never publicly acknowledged but whom everyone knew about. Don't be tempted to do an end run around the law. Notify everyone who has a legal right to notice.

What happens if you distribute assets before the process for receiving creditor claims is completed?

If you distribute any assets before the process for receiving creditor claims is completed, you may find that there is not enough money left in the estate to pay all legitimate claims. If that's the case, you may be exposed to personal liability for distributing the assets prematurely.

How long do you have to dispute a claim in Ohio?

In Ohio, creditors have six months after the death to present claims in writing, and personal representatives have thirty days after receipt of a claim to allow ...

What happens if you don't obey a court order?

If you fail to obey a court order, depending on the circumstances, you could be held in contempt of court, exposed to personal liability, fined, removed from your position as personal representative, or some combination of the above.