Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific situation.
Detailed Answer
Under Alaska law, a personal representative (often called an executor or administrator) may seek reasonable compensation that reflects the value of estate assets and any sale proceeds. Alaska Statute AS 13.16.190 authorizes the court to approve a commission or fee for services rendered in administering an estate.
By default, the court calculates commission based on a sliding scale of the gross estate value. While statutes do not set separate rates for sale proceeds, courts typically include sale proceeds in the gross estate valuation. A representative can therefore request a commission on both the original asset value and the amount realized at sale, subject to court approval.
If the personal representative prefers, they may itemize actual hours spent and request an hourly fee instead of a percentage commission. The court will consider whether the requested compensation is reasonable in light of the estate size, complexity of asset management, and customary rates in Alaska.
To obtain approval, the personal representative must file a petition with the probate court. The petition should describe the services performed, list estate assets or sale proceeds, and specify the requested commission or fee. Interested parties receive notice and have the opportunity to object.
Helpful Hints
- Review AS 13.16.190 in full: Compensation of personal representative.
- Prepare a clear inventory of estate assets and documentation of sale proceeds before filing your petition.
- Consider market rates: Hourly-rate petitions should attach a list of comparable local rates for estate administration.
- Notify beneficiaries: Proper notice of your compensation request reduces the risk of objections and delays.
- Seek court guidance early: If the estate includes complex assets—such as real estate or closely held businesses—request pre-approval for commissions and fees.