What term describes payment to the personal representative for work performed, calculated as a percentage of the principal and income of the estate?

• A. Dividend
• B. Escheat
• C. Commission
• D. Renunciation

Answer: (C)

The term is commission. This describes the fee paid to the personal representative (executor or administrator) for the work of administering the estate. It’s typically calculated as a percentage of the estate’s principal assets and the income those assets generate, reflecting compensation for tasks like collecting assets, paying debts, filing taxes, and distributing the remaining property. This concept is different from a dividend (a distribution of profits to shareholders), escheat (property reverting to the state when there are no heirs or owners), or renunciation (a beneficiary’s or claimant’s rejection of an interest). In practice, commissions are often governed by statutory schedules or court approval and may vary based on estate value and complexity.