QUESTION
Does my uncle get paid from the estate prior to my deduction of the administrator commission?
Asked on Jan 08th, 2016 on Estate Planning - Nebraska
More details to this question:
I am the administrator of my dad's estate (home) and my uncle fought the case against me as well as my immediate family for some time. However we came to a settlement finally where I was appointed the administrator and I agreed to give him 25% of the net share in the estate. It is now time to divide the estate amount. Prior to division I was informed that I would receive an administrator commission. However now when we have attempted to deduct the administrator fee/commission off the top and then divide the assets, my uncles attorney has started to argue that his client needs to be paid first, then I can have the administrator fee because we agreed to 25% of the net share, not the administrator fee. Is this true? Every step of the way my uncle has tried to extract money from this estate when he didn't have a right to, so I am cautious about agreeing. This would if he is correct give him 4,500 more to his estate which is a huge difference.
10 ANSWERS
Thomas Edward Gates
Your agreement was 25% of the NET Estate residue. This means all expenses, including your fees, are deducted first before ANY distribution is made to the beneficiaries. You should have used an attorney to help you with the probate. Good luck.
Answered on Feb 01st, 2016 at 5:36 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Net means "after payment of debts and expenses", the administrators fee is one of the expenses. Your uncle's share comes after the fee is deducted.
Answered on Feb 01st, 2016 at 9:33 AM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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If you are the administrator you should consult the attorney that represents you as the administrator of the estate.
Answered on Jan 31st, 2016 at 8:39 AM
Probate Attorney serving Newport, OR
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Minor, Bandonis & Haggerty P.C.
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You should put this to your attorney. I would say that the answer according to Oregon law would be that your administrator's fee is a fee calculated on the whole estate, and it is an expense of administration which comes "off the top," before any distributions. However, the exact language of your settlement might have modified that rule, even inadvertently. I'd have to see the settlement agreement to be completely certain of my answer.
Answered on Jan 31st, 2016 at 8:30 AM
Probate Attorney serving New Orleans, LA
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James G. Maguire
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You are entitled to a fee of 2.5% of the value of the assets administered. Whatever agreement you make with your uncle has nothing to do with this.
Answered on Jan 31st, 2016 at 8:26 AM
3 Awards
Hard to say without reading the settlement agreement. Oftentimes PRs waive their fees. Also if there was no meeting of the minds there may not be a settlement. Consult your own attorney. If you do not have one based upon your explanation it sounds like your fee may come after. Since you said you learned about the fee prior to division. The meeting of the minds was probably without a fee. Had you had an attorney this ambiguity may have been avoided. If you have one, ask the attorney good luck to you. These comments do not create an Attorney client relationship and are solely thoughts based upon the listed facts presented. You may need to hire an attorney if you do not have one if you are uncertain about your rights.
Answered on Jan 31st, 2016 at 8:24 AM
I would have to see the actual written agreement, but "net share" normally means the "gross" amount less all costs and expenses, including administrator fees [not commission you are not selling anything; state law specifically says what the dollar amount is], so your uncle's attorney seems to be trying to pull a fast one. In any case, since the Will has been probated, as administrator you have to file a final accounting with the probate court in which you list the gross value of the assets and what liens, etc., including what the administrator's fee is, and then the court issues an order as to what dollar amount everyone gets. Tell the court what your uncle is trying to do and ask if the attorney has violated the Code of professional Conduct.
Answered on Jan 31st, 2016 at 8:20 AM
Probate Attorney serving Palatine, IL
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Law Offices of Robert H. Glorch
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If you entered into a written settlement agreement, the answer should be in the terms of that written settlement agreement.
Answered on Jan 31st, 2016 at 8:11 AM
Commercial Attorney serving Chicago, IL
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Ashcraft & Ashcraft, Ltd.
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The terms of the settlement agreement will control the distributions. How was "Net Share" defined in the agreement. Typically, distributions are made after all estate expenses are paid. The "Net Share" would be after the expenses are deducted. An administrator's fee is normally part of the expenses of the estate. Is there a Will? If so, what does the Will say about the payment of administrator's fees? You could present your fees for approval by the Court and your uncle would have an opportunity to challenge some of the charges as not being reasonable. Then the approved fees are deducted before his share is determined.
Answered on Jan 31st, 2016 at 7:36 AM
The rules of the state your father resided in at the time of his death control who gets paid what and when. The states I'm familiar with deduct certain expenses such as funeral expenses, administration costs (including the executor, legal, and accounting), and taxes first. After that secured creditors get paid, and finally unsecured creditors. Whatever is left is distributed to the heirs. If you and your uncle agreed that he would get 25% of the net estate, then all those other expenses would be paid first and he would get 25% of whatever is left.
Answered on Jan 31st, 2016 at 6:56 AM