Acting as an executor of an estate is a significant responsibility, entailing various tasks such as collecting the deceased’s assets, paying off debts, and distributing the estate according to the Will. While fulfilling these duties, executors may incur personal expenses.
Understanding what constitutes allowable executor’s expenses and the process for claiming these expenses is crucial for anyone taking on this role. In this blog, our Probate Solicitors in Preston explore the types of expenses that are generally considered allowable and outlines how an executor can claim these expenses.
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What expenses can Executors claim?
Allowable expenses are those necessary and reasonable costs incurred by the executor in the administration of the estate. These expenses can vary depending on the complexity of the estate, but commonly include:
Probate Fees:
Professional Services:
Fees for legal, accounting, and other professional advice needed to administer the estate properly. For example, the costs charged by our Probate Solicitors in Preston are allowable expenses, and can be paid from an estate.
Property Maintenance:
Costs related to maintaining or securing estate property, including repairs, insurance, and utility bills.
Funeral Expenses:
Costs associated with the deceased’s funeral and burial, if paid by the estate.
How do I claim Executor’s expenses?
Claiming expenses as an executor involves several steps to ensure that all costs are properly documented and justified. If our Probate Solicitors in Preston are instructed to administer an estate, we ask the executor to let us have receipts for all expenses incurred, so they can ensure these are paid back legitimately and correctly when our solicitors have collected in estate funds.
If you are an executor administering an estate yourself, here are key steps in the process:
Keep Detailed Records:
From the outset, maintain meticulous records of all expenses incurred, including receipts, invoices, and detailed notes explaining each expense’s nature and necessity.
Understand the Will and Laws:
Familiarise yourself with any provisions in the Will regarding executor and estate administration expenses, and seek legal advice from a qualified Probate Solicitor to understand what expenses are considered allowable in England and Wales.
Consult with Professionals:
If in doubt about whether a specific expense is allowable, consult with a Probate Solicitor. This can help avoid disputes with beneficiaries over the legitimacy of expenses.
Prepare an Estate Account:
Compile a comprehensive account of the estate, including all assets, liabilities, distributions to beneficiaries, and a detailed list of expenses. This account should be presented to the beneficiaries for approval.
Obtain Beneficiary Approval:
Before reimbursing yourself for expenses, it’s advisable to obtain explicit approval from the estate’s beneficiaries, especially for significant or unusual expenses. This can help prevent disputes and ensure transparency.
Reimburse Expenses:
Once expenses have been documented and approved, the executor can reimburse themselves from the estate’s funds. This should be done in a manner that is transparent and documented within the estate’s financial records.
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What is the best way to deal with Executor’s expenses?
Act in the Estate’s Best Interest:
Always ensure that expenses are necessary for estate administration and that they are incurred in a way that best serves the estate’s interests.
Communicate with Beneficiaries:
Regular communication with beneficiaries about expenses and the estate’s administration can help build trust and prevent misunderstandings.
Stay Organised:
Keeping organised records from the beginning will simplify the process of claiming expenses and administering the estate.
Acting as an executor involves significant responsibility, including managing expenses related to the administration of the estate. By understanding what expenses are allowable and following a transparent process for claiming these expenses, executors can fulfil their duties while ensuring that the estate is administered efficiently and fairly. Keeping detailed records and consulting with Probate Solicitors when necessary can help navigate the complexities of estate administration and uphold the executor’s fiduciary duties to the estate and its beneficiaries.
To speak with Probate Solicitors in Preston, contact our team on 01772 783314 to arrange an appointment, email wills@mglegal.co.uk, or complete the contact us form below for a call back within one working hour. Our Probate Solicitors in Preston have years’ of experience in administering estates, and can deal with the administration of your behalf, taking the stress out of your loved one’s estate and the role of being an executor.
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