Legal Definitions - extraordinary compensation

Extraordinary compensation refers to additional payment an attorney seeks for performing tasks in an estate administration that go significantly beyond the typical duties and responsibilities. These are not routine legal services but rather unusual or complex matters that require substantial extra time, effort, or specialized expertise. Because these tasks fall outside the standard scope of work, the attorney must present a detailed justification to a judge, who then decides whether to approve the additional fees.

• Estate Litigation: An attorney is administering an estate, but a distant relative unexpectedly files a lawsuit claiming a significant portion of the inheritance, alleging a previously unknown will. The attorney must then spend considerable time preparing for and engaging in litigation, including discovery, court appearances, and negotiations, which is far more involved than simply filing probate documents.

  • This illustrates extraordinary compensation because defending the estate against a complex lawsuit is not a standard part of routine estate administration. It requires specialized litigation skills and a significant investment of time beyond the usual duties, justifying a request for additional fees approved by the court.

• Managing a Deceased's Business: The deceased owned a thriving small business that cannot be immediately sold or transferred without significant loss of value. The estate attorney, who typically handles legal paperwork, must temporarily step in to oversee the business operations, manage employees, negotiate contracts, and ensure its continued profitability for several months until a suitable buyer is found or a successor is in place.

  • This is an example of extraordinary compensation because actively managing a complex business is well outside the typical legal duties of an estate attorney. It demands business acumen and ongoing operational involvement that goes far beyond standard asset management and distribution, warranting a judge's approval for extra payment.

• Discovery and Recovery of Hidden Assets: During the administration of an estate, it becomes apparent that the deceased had significant assets, such as offshore bank accounts or valuable intellectual property, that were not disclosed in their records and required extensive international investigation, forensic accounting, and complex legal actions in multiple jurisdictions to locate and recover for the estate.

  • This demonstrates extraordinary compensation because the extensive, multi-jurisdictional investigation and recovery of previously unknown or hidden assets is far more complex and time-consuming than simply inventorying known assets. Such specialized detective work and legal action fall outside the scope of routine estate administration, thus requiring judicial approval for additional fees.