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Aberdeen MS | Charging by the hour will probably keep your tush as pain free as possible.
A few years ago, here in MN, an attorney and bank official handled the estate of an older widow. The estate value was into 7 figures with a one beneficiary receiving the bulk of the estate (that one was over 7 figures by itself).
The attorney had charged and collected fees based on a % (as determined by the courts) basis before the probate was final. Bank official had collected fees based both on % and hourly. The main beneficiary challenged the fees charged in court as being excessive. Shortly after that, the attorney "passed away at home".
What was determined by the courts is that, at least here in MN, fees based off of % of estate is an old and outdated method of charging and bordered on unethical behavior of the attorney and ordered his estate to reimburse the estate of the widow for the over charge.
In this particular case, the attorney had been paid over $100,000 by that date with final billing yet to be produced. The bank official who was listed as the executor had already collected over $50,000 and one of the charges listed was 3 hours of time billed to the widow's estate for the attendance of the attorney's funeral. Definitely some "hanky panky" was going on.
Not that this case has any bearing other than the fact that this judge has set a precedence doing away with charging a % of estate value for services rendered in MN.
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What to charge for being an executor of an estate??
