What process should be followed for compensating the personal representative of an estate?

Prepare for the New Brunswick Bar Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The compensation for the personal representative (PR) of an estate is typically established through a court order. This process ensures that the compensation is fair, reasonable, and reflects the complexity of the estate's administration. The court has the authority to review the work performed by the PR and can take into account factors such as the size of the estate, the time and effort put forth by the PR, and any statutory guidelines that may apply.

By allowing the court to determine compensation, there is an added layer of accountability and oversight, which protects the interests of the beneficiaries and ensures that the PR is not overpaid for their duties. In many jurisdictions, including New Brunswick, the law provides specific guidelines or a formula that courts may use to calculate reasonable compensation for personal representatives, further ensuring a standardized approach.

This option of court-fixed compensation contrasts with the idea that beneficiaries would have the unilateral power to decide their own compensation, which could lead to conflicts of interest or unfair payments. Similarly, allowing the PR to determine their compensation without oversight could lead to unjust outcomes. Lastly, the notion that compensation is unnecessary undermines the reality that administering an estate often requires significant time and expertise, meriting appropriate compensation for the PR's work. Thus, having the court establish compensation is

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