Detailed Answer
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Under Hawaii law, a personal representative may request compensation for settling an estate, including commissions on estate assets and sale proceeds. The court determines what is “reasonable” under Hawaii Revised Statutes (HRS) §560:3-607 and §560:3-608.
HRS §560:3-607(a) authorizes the court to allow a personal representative “reasonable compensation for services rendered.” The statute does not set a fixed percentage. Instead, the court considers the estate’s size, complexity, time spent, and skill required. Common factors include: the gross and net value of estate assets; number and nature of assets sold; and any extraordinary duties, such as litigation or tax filings. (HRS §560:3-607.)
HRS §560:3-608 permits additional allowances when the personal representative conducts a sale of real or personal property under court order. This provision often leads to a commission based on net sale proceeds. While Hawaii law does not prescribe a flat rate, courts frequently award commissions in line with local customs—often between 2% and 5% of net proceeds, subject to adjustment for extraordinary work. (HRS §560:3-608.)
To secure approval, the personal representative files a petition or final accounting detailing all services, asset valuations, and sale figures. The court reviews objections from beneficiaries, if any, then issues an order specifying the allowed compensation.
Helpful Hints
- Document all time and tasks. Keep detailed logs of services performed.
- Obtain court approval before selling major assets to ensure eligibility for sale commissions.
- Review local probate guidelines for customary commission rates in your county.
- Disclose proposed fees to beneficiaries early to prevent objections at an accounting hearing.
- Consult the probate court clerk about required forms and timelines for fee petitions.
- Consider hiring an attorney when estates involve complex assets, litigation, or tax issues.