“What Would You Say You Do Here?”

There is a famous scene in Office Space where two consultants—both named Bob—interview employees and ask a brutally direct question:

“What would you say you do here?”

It is not exactly a friendly question.

The implication is:

We see that you are getting paid. We just do not understand why.

A personal representative administering an estate may eventually hear a version of the same question.

Usually, it happens when a beneficiary sees the personal representative’s commission listed in an estate accounting.

“You charged the estate?”

“You are getting paid for this?”

“You hired a lawyer. What did you actually do?”

Or, more emotionally:

“Really glad you charged your own brother.”

At that point, the beneficiaries have effectively become the Bobs from Office Space.

They see the payment.

They may not see the work.

Unlike some of the employees in Office Space, however, a personal representative usually has a very good answer to the question:

“What would you say you do here?”

As it turns out, quite a lot.

What Is a Personal Representative?

A personal representative is the person appointed to administer a probate estate.

Some people still use the word “executor.” In Maryland, the legal term is generally “personal representative.”

The personal representative is not simply the family member who hands out the money.

The personal representative is a fiduciary.

That means the personal representative has legal responsibilities to the estate, its beneficiaries, and its creditors.

Under Maryland law, the personal representative has a general duty to settle and distribute the estate according to the will and Maryland law as promptly as reasonably possible and with as little sacrifice of value as is reasonable under the circumstances.

That sounds dignified.

In practice, it can involve a lot of phone calls.

And paperwork.

And emails.

And waiting on hold while a financial institution explains that the death certificate you already sent somehow never arrived.

What Does a Personal Representative Actually Do?

Every estate is different, but the personal representative’s work may include:

• Locating the original will
• Filing documents to open the estate
• Obtaining certified Letters of Administration
• Identifying beneficiaries and heirs
• Notifying interested persons
• Publishing notice to creditors
• Locating and securing estate property
• Identifying bank, investment, and retirement accounts
• Determining how assets are titled
• Obtaining date-of-death values
• Preparing and filing an inventory
• Arranging appraisals
• Maintaining insurance on estate property
• Paying valid debts and expenses
• Addressing creditor claims
• Selling real estate or personal property
• Filing tax returns
• Maintaining accurate financial records
• Preparing estate accountings
• Responding to questions from beneficiaries
• Distributing property
• Closing the estate

Some estates are straightforward.

Others are not.

There may be a house filled with decades of possessions.

There may be unpaid taxes.

There may be a business.

There may be property in another state.

There may be missing account statements.

There may be a beneficiary who believes every step should have been completed three weeks ago.

There may be siblings who have not agreed on anything since the Reagan administration.

The personal representative is expected to handle all of this carefully, honestly, and in accordance with the law.

That is real work.

Can a Maryland Personal Representative Receive Compensation?

Yes.

Maryland law provides that a personal representative or special administrator is entitled to reasonable compensation for services.

The important word is reasonable.

Serving as personal representative is not supposed to be an opportunity to treat the estate like a personal ATM.

But neither does Maryland law require someone to perform substantial work for free simply because the beneficiaries are relatives.

The compensation is often called a commission.

Maryland law establishes a maximum commission based on the size of the estate:

• For an estate of $20,000 or less, the maximum is 9% of the estate.
• For an estate exceeding $20,000, the maximum is $1,800 plus 3.6% of the amount over $20,000.

These figures are maximums.

They are not necessarily automatic entitlements.

A personal representative does not simply calculate the largest possible number, write a check, and announce:

“I am going to need you to go ahead and approve this commission.”

The compensation must still be reasonable under the circumstances.

An Example

Suppose a Maryland probate estate has a value of $500,000.

The statutory maximum would be calculated as follows:

• $1,800 on the first $20,000
• Plus 3.6% of the remaining $480,000

Three-point-six percent of $480,000 is $17,280.

That produces a maximum commission of $19,080.

That does not necessarily mean the personal representative will receive $19,080.

It means the commission ordinarily may not exceed that amount under the statutory formula.

The appropriate amount may depend on the work performed, the complexity of the estate, the time involved, whether professionals were hired, and the overall circumstances of the administration.

How Does the Personal Representative Get the Commission Approved?

A personal representative generally has two possible paths.

The first is to petition the Orphans’ Court for approval.

The petition should explain, in reasonable detail, the services performed and the compensation requested. The court may then allow the commission it considers appropriate, subject to the statutory limit.

The second path may be available when all required parties consent in writing.

Under Maryland law, commissions and attorney’s fees may be paid without prior court approval when all interested persons and each creditor with an open filed claim consent in writing, the applicable statutory requirements are satisfied, and the signed consent is filed with the Register of Wills.

In other words, the personal representative should not quietly transfer estate money into a personal account and hope nobody notices.

Transparency matters.

Documentation matters.

Following the proper approval process matters.

This is not the time for someone to say:

“I believe you have my stapler.”

“But That Was Their Mother”

This is where the issue becomes emotional.

A child may say:

“I would never charge for handling my mother’s estate.”

That is a perfectly legitimate personal choice.

A personal representative can waive compensation.

Many do.

Sometimes the estate is simple.

Sometimes the personal representative views the work as a final act of service.

Sometimes the personal representative is also the sole beneficiary, making the issue largely academic.

Sometimes the family has an understanding that nobody will charge.

There is nothing wrong with declining compensation.

But there is also nothing inherently wrong with accepting reasonable compensation.

Imagine three siblings.

One lives near their deceased parent.

The other two live several states away.

The nearby sibling spends nine months:

• Checking the vacant house
• Meeting contractors
• Sorting personal belongings
• Forwarding mail
• Gathering tax documents
• Communicating with the estate attorney
• Taking time away from work
• Preparing the house for sale
• Paying estate expenses
• Tracking receipts
• Answering questions
• Dealing with the court process

The other siblings may still be grieving.

They may still care deeply.

They may have valid reasons why they cannot help.

But the workload is not equal.

It is easy to say, “We are family,” when someone else is doing the work.

The Office Space Problem

This is where beneficiaries sometimes become the Bobs.

They see a commission in the accounting and begin asking:

“You hired a lawyer. What would you say you actually do here?”

The answer may be:

“I gathered the financial records.”

“I secured and maintained the house.”

“I handled the creditors.”

“I worked with the attorney and accountant.”

“I found the assets.”

“I arranged the appraisals.”

“I dealt with the court filings.”

“I answered everyone’s questions.”

“I maintained the records.”

“I assumed the legal responsibility if something went wrong.”

The personal representative may also hear:

“You are already receiving an inheritance.”

“You should not make money from Mom’s death.”

“We could have done this ourselves.”

“You never asked me to help.”

Sometimes those concerns deserve a serious discussion.

A personal representative should be able to explain what was done, what professionals were hired, what the estate paid, and why the requested compensation is reasonable.

But the mere fact that a personal representative is also a beneficiary does not mean the personal representative performed no services.

An inheritance and compensation serve different purposes.

The inheritance is received because the person was named in the will or is entitled to inherit under Maryland law.

The commission is compensation for administering the estate.

Those are not the same thing.

“But the Lawyer Did Everything”

This is another common objection.

Estate attorneys can handle a great deal of the legal and procedural work.

But the attorney usually cannot do everything.

The attorney generally does not know:

• Where Dad kept the account statements
• Which items in the house belong to someone else
• Whether the roof has been leaking
• Who has keys to the storage unit
• Whether the car still runs
• Which family member was promised the grandfather clock
• Why there are eleven unopened bank envelopes in the kitchen drawer

The personal representative still has to gather information, make decisions, authorize actions, communicate with professionals, safeguard property, review documents, and fulfill fiduciary obligations.

The attorney advises and assists.

The personal representative remains responsible for the administration.

Maryland courts may also consider personal representative commissions together with attorney’s fees when evaluating whether the overall cost of administering the estate is fair and reasonable.

The estate should not pay twice for the same work.

But the fact that an attorney was involved does not automatically eliminate the personal representative’s right to compensation.

Hiring a lawyer does not turn the personal representative into the guy who takes information from the customers and brings it to the engineers.

Compensation Comes With Responsibility

Accepting a commission does not merely mean getting paid.

It also increases the importance of demonstrating that the job was properly performed.

A personal representative should maintain good records.

That includes records of:

• Estate income
• Estate expenses
• Property sold
• Debts paid
• Distributions made
• Professional fees
• Mileage or other reimbursable expenses
• Significant tasks performed
• Time devoted to unusually burdensome matters

A personal representative who requests compensation should expect beneficiaries—or the court—to ask what work was performed.

“I was in charge” is not a detailed description of services.

Good records can prevent suspicion and reduce disputes.

They can also help distinguish compensation from reimbursement.

For example, repayment of an estate expense that the personal representative paid personally is not necessarily compensation. If the personal representative used personal funds to pay a valid estate bill, reimbursement may simply restore that money.

A commission, by contrast, is payment for services.

Both should be documented.

Can a Personal Representative Lose the Right to Compensation?

Potentially, yes.

A personal representative is a fiduciary and must act in good faith, exercise appropriate care, remain loyal to the estate and its beneficiaries, avoid improper self-dealing, and maintain accurate records.

A court may reduce or deny compensation when the personal representative has failed to perform required duties, caused unnecessary loss, acted dishonestly, engaged in self-dealing, or otherwise breached fiduciary obligations.

Compensation is not a reward merely for being named in the will.

It is compensation for properly serving the estate.

A person who neglects the estate, ignores court deadlines, loses property, refuses to communicate, or uses estate funds improperly should not assume that the statutory maximum is guaranteed.

The right to request compensation comes with the obligation to do the job correctly.

The personal representative does not get a commission merely for showing up in a tie and holding a coffee mug.

Should a Personal Representative Charge Family Members?

That is not entirely a legal question.

It is also a family question.

Before accepting compensation, the personal representative may want to consider:

• How much work was actually required?
• Did the will address compensation?
• Is the personal representative also a beneficiary?
• Did one family member bear most of the administrative burden?
• Were substantial professional fees also paid?
• Is the requested amount proportionate to the services?
• Were expectations discussed with the beneficiaries?
• Will taking a commission create unnecessary family conflict?
• Would a reduced commission be appropriate?
• Does the personal representative understand the potential income-tax consequences?

There is no universal answer.

In some families, accepting the full available commission is entirely reasonable.

In others, the personal representative may waive it.

Sometimes the personal representative accepts a reduced amount.

Sometimes the beneficiaries agree that the person handling the estate deserves to be paid.

The best approach is usually one that combines legal compliance, accurate records, transparency, and realistic consideration of the family dynamics.

A Conversation Is Better Than a Surprise

Many compensation disputes are not really about the number.

They are about the surprise.

A beneficiary receives an accounting, sees a commission for the first time, and thinks:

“My sister paid herself $15,000?”

The personal representative thinks:

“I spent a year handling everything while nobody helped.”

Both sides immediately become defensive.

That conflict may have been reduced by an earlier conversation.

The personal representative could explain:

“Maryland law permits compensation for this role. I am keeping track of the work involved. Before requesting any commission, I will discuss the amount with everyone and follow the required approval process.”

That does not guarantee agreement.

But it is usually better than unveiling the commission at the end like a new workplace policy requiring everyone to come in on Saturday.

Final Thoughts

Serving as personal representative can be an honor.

It can also be exhausting.

The person administering an estate may be grieving while simultaneously becoming responsible for property, bills, taxes, court filings, creditor claims, financial records, family communication, and legal deadlines.

Maryland law recognizes that this work has value.

That is why a personal representative may receive reasonable compensation.

The commission is not automatic.

The statutory maximum is not always the appropriate amount.

The proper approval procedures must be followed.

And the personal representative must be prepared to demonstrate that the services were actually performed and that the compensation is reasonable.

Families are allowed to discuss the issue.

Beneficiaries are allowed to ask questions.

Personal representatives should be transparent.

But “You charged your own brother?” is not the end of the analysis.

A better question is:

“What work did the personal representative perform, and what would be fair compensation for that work?”

Or, as the Bobs might put it:

“What would you say you do here?”

In many estates, the answer is:

Quite a lot, actually.

Do You Have Questions About Administering a Maryland Estate?

If you have been named as personal representative, are currently administering an estate, or have questions about commissions, attorney’s fees, accountings, creditor claims, or distributions, obtaining guidance early can help prevent costly mistakes and family conflict.

A well-administered estate requires more than good intentions.

It requires careful records, compliance with Maryland law, clear communication, and an understanding of the personal representative’s fiduciary responsibilities.

Contact our office to schedule a consultation:

Email: Donny@DonnyLaw.com
Call: (301) 765-4473
www.donnylaw.com