Legal Question in Wills and Trusts in New York
still confused
I was just given a break down of how to calculate commissions for an administrator of an estate. What puzzles me is if I sell a home for 210,000 and its 5% on the first 100,000 and 4% on the next 200,000, will I be entitled to 9%???
2 Answers from Attorneys
Re: still confused
No.
$100,000 x 5% = $5,000
$110,000 x 4% = $4,400
Total commission: $9,400.
If you are entitled to 9% of the $210,000, you commission would be $18,900.
Mike.
Re: still confused
Mike is correct in his illustration. The commission is tiered; that is, you take total assets in the estate and apply the commission rates to the total, not each individual asset. Let's assume total estate assets are $300,000, consisting of the home worth $210,000 and other assets of $90,000. You are entitled to 5% on the first $100,000 of value, or $5,000. On the remaining $200,000 (baloance of home, plus other assets) the rate is 4%, or $8,000, for a total commission on assets valued at $300,000 of $13,000. As the size of the estate increases, the commission rate decreases on each tier of excess amount.
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