Detailed Answer
Under
Indiana Code directs the probate court to allow “reasonable commissions” for personal representatives. The court considers factors such as the size and complexity of the estate, the services performed, and the time required. Commissions typically fall into two categories:
- Asset Management and Distribution: The court may approve a percentage of the gross value of estate assets at the time of settlement. This compensation covers identifying, collecting, and distributing property.
- Sale Proceeds: When estate property is sold, the court may authorize a commission based on net sale proceeds. This covers services such as marketing assets, negotiating sales, and handling closings.
While Indiana law does not set a fixed rate, many courts reference common guidelines (for example, around 2% of personal property values and 1–5% of real property sale proceeds). The probate judge retains discretion to adjust rates up or down. To secure a commission, a personal representative must:
- File an inventory or account with the court.
- Submit a petition detailing the requested commission and supporting documentation.
- Attend a hearing if the court requires additional explanation.
The court may reduce commissions if services duplicate those provided by attorneys or other professionals. It may also increase compensation for unusually complex tasks, such as international asset recovery or intricate tax matters.
Note: Specific cases can differ. Review the full text of Indiana Code 29-1-8 for comprehensive rules.
Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Helpful Hints
- Review the estate inventory early to estimate potential commissions.
- Keep detailed records of time spent and tasks performed.
- Discuss commission guidelines with the probate court clerk.
- Prepare clear petitions with supporting appraisals and sales data.
- Consider professional assistance for complex or high-value estates.