As executor, what amount would be appropriate as compensation for my time regarding an insolvent estate?
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As executor, what amount would be appropriate as compensation for my time regarding an insolvent estate?
I am an executor for my sister’s estate. Her estate is insolvent with about $25K against it; her assets are about $2500. I have had to deal with numerous credit cards and collection agencies. I have had to deal with selling her home which is being sold in a short sale right now. In addition to all the other aspects of her estate. Is there a “set” amount that I can legally claim?
Asked on June 11, 2012 under Estate Planning, Kentucky
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
I am sorry for your loss. The issue is that there is no money in the estate and if your compensation takes priority as a debt of the estate. I would ask an attorney in your area. Good luck. Here is the statute:
395.150 Compensation of representatives.
(1) The compensation of an executor, administrator or curator, for services as such, shall not exceed five percent (5%) of the value of the personal estate of the decedent, plus five percent (5%) of the income collected by the executor, administrator or curator for the estate.
(2) Upon proof submitted showing that an executor, administrator or curator has performed additional services in the administration of the decedent's estate, the court may allow to the executor, administrator or curator such additional compensation as would be fair and reasonable for the additional services rendered, if the additional services were:
(a) Unusual or extraordinary and not normally incident to the administration of a decedent's estate; or
(b) Performed in connection with real estate or with estate and inheritance taxes claimed against property that is not a part of the decedent's estate but is included in the decedent's estate for the purpose of asserting such taxes.
Effective: October 1, 1942
History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 3883.
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