A Personal Representative can take a fee or commission for the work that they do administering the Estate. This is more likely to occur when the Personal Representative is not a beneficiary of the Estate and/or if the Personal Representative is a non-family member. It is important to note that the Commission a Personal Representative takes is considered taxable income and must be reported on their tax return. Conversely, the inheritance is generally not taxable to the individual. So, on the one hand it may not make financial sense to shift a tax-exempt inheritance to taxable income and, on the other hand, family members tend to Probate an Estate out of love and respect for the decedent and also do not want to diminish the inheritance of the heirs and legatees by taking such a fee.
The Commission taken by a Personal Representative, combined with Counsel Fees paid to an attorney, are generally capped by statute at 9% of the first $20,000 of gross estate assets plus 3.6% of the remainder of gross estate assets. The Personal Representative must file a Petition with the Court requesting their Commissions. More on this below in our discussion of Council Fees.