Opinion ID: 1833439
Heading Depth: 2
Heading Rank: 1

Heading: Premature payment of probate fees.

Text: On the same day as his appointment, Smith withdrew the $2000 held for Ms. Seaman in his trust account and paid the sum to himself for executor and attorney fees. On February 6, 1995, he paid himself another $1000 from estate funds. Smith admits that neither of these payments complied with Iowa statutory and probate rules governing the compensation of fiduciaries. Iowa Code sections 633.197 and 633.198 (1997) permit personal representatives and their attorneys to receive reasonable fees as may be determined by the court for services rendered. The timetable for authorizing such fees is set forth in Supreme Court Probate rule 2(d). The rule states: One half of the fees for ordinary services may be paid when the federal estate tax return, if required, and the Iowa inheritance tax return, if required, are prepared.... When a federal estate tax return is not required, the one-half fee may be paid when the Iowa inheritance tax return is prepared, or, when it is not required, when the inheritance tax clearance is filed. The remainder of the fees may be paid when the final report is prepared and the costs have been paid. The schedule for paying fees may be different when so provided by order of the court for good cause. Iowa R. Prob. P. 2(d). Smith concedes that when he took the $2000 fee he had neither prepared an Iowa inheritance tax return nor filed an inheritance tax clearance. When he took the $1000 fee, the final report had not been prepared, nor had costs been paid. Although the estate was promptly closed, his fees were nevertheless distributed three months prematurely and without court authorization. The board charged, and the commission found, that Smith's receipt of probate fees without authorization violated DR 2-106(A) of the Iowa Code of Professional Responsibility for Lawyers (lawyer shall not collect an illegal fee) and DR 1-102(A)(5) (conduct prejudicial to the administration of justice). Prior decisions of this court clearly support these findings. E.g., Iowa Supreme Ct. Bd. of Prof'l Ethics & Conduct v. Evans, 537 N.W.2d 783, 785 (Iowa 1995); Committee on Prof'l Ethics & Conduct v. Zimmerman, 465 N.W.2d 288, 292 (Iowa 1991); Committee on Prof'l Ethics & Conduct v. Coddington, 360 N.W.2d 823, 824-25 (Iowa 1985).