When you accept the duty of serving as executor or administrator of an estate, you must also understand which expenses can be reimbursed from the estate.
Often, family members or heirs have to pay out-of-pocket for expenses that would otherwise be the responsibility of the decedent, such as:
Funeral expenses
Burial or cremation
Legal fees and CPA fees
Court filing fees
Mortgage payments made when estate funds weren’t available
Maintenance or repairs to assets, such as replacement of a broken air conditioning unit
All of these costs can typically be reimbursed by the estate.
It’s important to keep receipts and careful records of expenses, so that you can show them to the court or to heirs.
Other items can’t be reimbursed from the estate, such as costs for a vacation or leisure activities during a trip that was primarily made to administer the estate.
The administrator or executor is also entitled to compensation for their time and work in fulfilling those duties, and those payments are made from the estate.
Sometimes the decedent specifies a payment amount or hourly rate in their will.
If no rate is specified in a will, Georgia estate law allows for a certain commission based on the amount of money brought into the estate and the money paid or distributed out of the estate. An executor or administrator may need to get court approval before paying him/herself.
Often, the executor or administrator is also a beneficiary of the estate, and it’s important to keep those two roles separate.
Understanding which expenses are reimbursable helps minimize confusion and disputes. An attorney who specializes in estate planning and probate law can help you and other beneficiaries handle the paperwork for proper expense reimbursements.
Disclaimer: This content is for informational purposes only, and does not constitute legal advice nor create an attorney-client relationship with Bequest Law.