What expenses can estate administrators claim?
Posted on 29th October 2019
As part of the Probate process, the executors (or the people who have responsibility for dealing with the collection and distribution of the deceased’s estate) may incur expenses, which can be claimed back from the estate. However, these expenses must be reasonable. So, what expenses can be claimed by the executors?
Well, if there is a property to sell as part of the Probate process, the executor can claim any expenses of selling the property back from the estate. This can include:
• A house clearance company
• A cleaning company
• Estate Agents
• A property solicitor to deal with the legal work
Other work claimed for can include:
• Probate Registry fees
• Valuation fees
• Professional fees (such as those of your Probate solicitors in Preston, for example)
• Inheritance Tax
If you’re unsure which expenses you can claim as the executor or administrator (see our probate solicitor’s blog about the difference between executors and administrators, here), contact our probate specialists at your local office.
How do I claim executor’s expenses?
The executors should keep a record of all the Probate expenses that they occur. Usually, when your Probate solicitors are dealing with an estate on behalf of the executor or administrators, they will pay general expenses out of their account using funds collected in. Alternatively, in some cases, they will pay these out from their office account, usually only if they are the executors of the estate.
The estate accounts need to show all of the money that has come into and out of the estate, or is due to be paid out when all money has been received (i.e. any debts payable before distribution). The accounts should also show all of the executor’s expenses incurred throughout the process, as well as any inheritance tax calculations and liabilities.
The residuary beneficiaries (so who is entitled to the remainder of the estate after any specific gifts have been dealt with), are entitled to see a copy of the estate accounts before distribution, so that they are aware of any money collected in or paid out. Residuary beneficiaries are entitled to see a copy of these accounts, as the administration carried out by the executor or administrator will directly impact how much money they receive, so it’s in their interests to approve any payments.
If the residuary beneficiaries believe that any executor or administrator has claimed unreasonable expenses, they can question this. If it is found that an executor has claimed expenses beyond what they are entitled to, then they have breached their duty of care to act in the best interest of the beneficiaries, which could mean that the beneficiaries are able to make a claim against them.
One way to avoid this, is to instruct your local Probate solicitors (either in our Lancaster or Preston offices) to deal with the Probate application and estate administration on your behalf. MG Legal’s fees for dealing with a straight-forward Probate application are £500.00 plus VAT, plus the Probate Registry application fee (usually around £155.00 - £165.00, depending on how many copies of the Grant of Probate or Letters of Administration are required). Any fees for dealing with the administration of the estate are an additional cost, and can be discussed with our team by contacting them, here. You can also find out more about our fees on our Probate fees page, here.
You can pop into your local office, or give our team a call on 01772 783 314, if you have any questions.
MG Legal – Your Local Solicitors
Tagged as: Lancaster Law, Longridge Solicitors, MG Legal, Solicitors in Preston, Your Local Solicitors
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