How the Wisconsin executor commission actually works
Wisconsin's 2% rate looks simple, but the base it applies to is genuinely different from a flat gross-value calculation used in most other states.
1. A net base, not gross inventory value
Wis. Stat. § 857.05(2): commissions are "computed on the inventory value of the property for which the personal representative is accountable less any mortgages or liens plus net principal gains in the estate proceedings" at a rate of 2%. So a $350,000 property with a $50,000 mortgage and $10,000 in net principal gains during administration produces a $310,000 base, not $350,000 — and if the estate realizes net principal losses instead of gains, the base shrinks further.
2. The rate itself can be changed — by written agreement
§ 857.05(2): the 2% default applies "or a rate that the decedent and the personal representative, or the persons who receive the majority interest in the estate and the personal representative, agree to in writing." This means either the decedent (during life) or the heirs holding a majority interest (after death) can negotiate a different rate with the personal representative, in writing.
3. Extraordinary services add on top
§ 857.05(2): the court may allow "such further sums in cases of unusual difficulty or extraordinary services as the court determines reasonable" — an open-ended addition to the 2% commission, not a replacement for it.
4. Expenses are separate from the commission
Wis. Stat. § 857.05(1) separately allows the personal representative "all necessary expenses in the care, management and settlement of the estate" — reimbursement of actual costs, distinct from the 2% commission for their services.
5. When the personal representative is also the attorney
§ 857.05(3): if the personal representative (or a law firm they're associated with) also serves as the estate's attorney, the court may allow either the executor's commission or attorney fees — not automatically both. The court may allow both, and must allow both if the will authorizes it. Sherman v. Hagness, 195 Wis. 2d 225 (Ct. App. 1995), confirms an attorney can serve as both personal representative and attorney for an estate, but can't bill at attorney rates for ordinary, nonprofessional executor work.
6. Misconduct can reduce or eliminate the commission
§ 857.05(2); Matter of Estate of Huehne, 175 Wis. 2d 33 (Ct. App. 1993): "If a personal representative is derelict in duty, his or her compensation for services may be reduced or denied." In Huehne, a personal representative's failure to communicate with an heir, in violation of a court order, was an appropriate basis for reducing the fee.
| Component | Wisconsin figure | Source |
|---|---|---|
| Default commission rate | 2% of net base | Wis. Stat. § 857.05(2) |
| Base calculation | Inventory value − mortgages/liens + net principal gains | Wis. Stat. § 857.05(2) |
| Alternate rate | Allowed by written agreement | Wis. Stat. § 857.05(2) |
| Extraordinary services | Additional sums, court's discretion | Wis. Stat. § 857.05(2) |
| PR who is also the attorney | Either commission or attorney fee, unless will authorizes both | Wis. Stat. § 857.05(3) |