[WSBAPT] Personal Representative Charges a Percent of the Estate as Personal Representative Fee

[Marcus Fry]

Although this was a case about an attorney utilizing attorney’s rates while serving as PR, In re Estate of Dawson (2004-unpublished) provides some good analysis regarding reasonableness of fees for a PR.  Note, to my knowledge, our case law does not bar a percentage for a fee, but given that hourly rates have been the standard of practice here in Washington for decades, it would make it difficult to get a finding of reasonableness for using a percentage.  However, if the estate was insolvent at the outset and the PR was able to put in the work to not only pay debts but bring some inheritance to the estate’s heirs, I could see a court being persuaded with a percentage take in such instance.

Marcus J. Fry
Lyon, Weigand & Gustafson, P.S.
P.O. Box 1689
Yakima, Washington  98907
Telephone:  (509) 248-7220
Facsimile:  (509) 575-1883

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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Jayne Gilbert
Sent: Tuesday, December 01, 2020 7:14 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Personal Representative Charges a Percent of the Estate as Personal Representative Fee

I am in agreement w/those who cite CA as a state that allows a percentage of the Estate's value for fees.
Which is one of the reasons Trusts are the preferred vehicle for the transfer of wealth in CA.

Charging a percent of the estate in WA is not a recognized evaluator. It goes back to attributing time spent,
value of services rendered, expertise and the rest. If the PR cannot account for his/her time/on specific tasks
when fees are challenged there is trouble in the State of WA and the size of the estate will not help the
PR much when it comes to accounting if the only thing the PR relies on is a percentage of the estate.

It may be a factor to weigh, but the PR must produce some specific numbers/tasks.

in my humble opinion. Licensed in both states.

On Tue, Dec 1, 2020 at 4:55 PM Inge Fordham <inge at fordhamlegal.com<mailto:inge at fordhamlegal.com>> wrote:
While that may fly in other states (I believe it’s allowed in CA but don’t quote me), I don’t believe that passes muster in WA.  I’ve always told PRs to keep detailed records of their time.


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Inge A. Fordham | Attorney
Fordham Law, PLLC
3218 Sixth Avenue | Tacoma, WA 98406
Office: (253) 348-2657 | Mobile: (206) 778-3131
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From: <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> on behalf of "G. Geoffrey Gibbs" <ggibbs at andersonhunterlaw.com<mailto:ggibbs at andersonhunterlaw.com>>
Reply-To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Date: Tuesday, December 1, 2020 at 10:35 AM
To: "jeff at bellanddavispllc.com<mailto:jeff at bellanddavispllc.com>" <jeff at bellanddavispllc.com<mailto:jeff at bellanddavispllc.com>>, WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Personal Representative Charges a Percent of the Estate as Personal Representative Fee

A percentage fee would not be approved in most of the counties in which I practice (absent a specific authorizing provision in the will).

G. Geoffrey Gibbs | Anderson Hunter Law Firm
2707 Colby Avenue, Ste. 1001  Everett, WA  98201
PO Box 5397, Everett, WA  98206-5397
Phone: (425) 252-5161 | Fax: (425) 258-3345
ggibbs at andersonhunterlaw.com<mailto:ggibbs at andersonhunterlaw.com>
 www.andersonhunterlaw.com<http://www.andersonhunterlaw.com/>
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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Jeff Davis
Sent: Tuesday, December 1, 2020 10:24 AM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Personal Representative Charges a Percent of the Estate as Personal Representative Fee

Listmates,

This is a new one for me in over 38 years of practice.  Personal Representative does not keep track of time but claims that she and her husband spent hundreds of hours working on behalf of the estate.  Put aside the issue of the husband wanting to be paid for his time from the estate, their attorney is now telling me that the PR can charge, as her fee, 3% of the value of the estate however you figure that out.  This probate has been going on for over a year with no inventory or accounting, yet the estate is ready to close.  And yes, I had brought a motion to remove the PR months ago, but put if off as PR was moving ahead with liquidating assets.  Your thoughts on the “legality” of the fee?

Jeff Davis

W. Jeff Davis, Esq.
BELL & DAVIS PLLC
P.O. Box 510
Sequim WA 98382
Phone No.:(360) 683.1129
Fax No.: (360) 683.1258
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Jayne Marsh Gilbert
Gilbert and Gilbert Lawyers, PS
(360) 336-9515
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