Also known as: expense of administration · administration expenses · administrative expenses · probate expenses · estate administration costs
Written by attorneys · grounded in primary & secondary sources — see below
Costs incurred by a personal representative in settling a decedent's estate. These costs encompass fees for legal and accounting services, court filing charges, expenses of asset preservation and distribution, and related outlays necessary to complete administration.
Evelyn Ellison served as personal representative for her aunt's estate. After paying all presented claims and taxes, she filed a closing statement confirming that expenses of administration had been settled and assets distributed to the heirs. The court accepted the filing and terminated her appointment one year later.
Ethan Evans was appointed personal representative of his father's estate. Within thirty days he mailed notice of the appointment to all heirs, explaining that the estate would be administered without court supervision and that recipients could seek information about expenses of administration. One heir later petitioned the court for an accounting of those costs.
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Edgar Evers, as personal representative, waited for the claims period to expire before paying allowed creditors. He first reserved funds for homestead allowances and then paid expenses of administration in the statutory order of priority. A claimant whose allowed bill remained unpaid obtained a court order directing payment from available estate funds.
Evelyn Ellison, as personal representative, inventoried the decedent's business assets subject to an industry regulatory order. She paid the proportional share of expenses of administration assessed against the estate before distributing remaining assets to heirs. The court approved the accounting and closed the estate.
Ethan Evans, as personal representative, submitted an estate dispute to arbitration under a clause requiring payment of arbitrator fees. The court directed the estate to bear those expenses of administration to avoid unconscionability and permitted distribution only after payment.
Emanuel Escobar's estate deducted expenses of administration when calculating the federal estate tax. The government challenged the deduction, but the Court upheld it as a proper reduction from the gross estate under the applicable revenue statute.
They include costs of preserving assets, legal and accounting fees, court costs, and any outlays required to complete settlement and distribution. The personal representative must pay them after making provision for allowances and before satisfying lower-priority claims.
The personal representative must confirm that all such expenses have been paid or otherwise disposed of before filing the closing statement. Any unpaid expenses must be disclosed along with arrangements made with distributees to cover them.
Yes. After homestead, family, and support allowances, the personal representative pays expenses of administration before satisfying most creditor claims. A claimant whose allowed claim remains unpaid may petition for an order directing payment when funds are available.
…approval of the committee, by agreement between the Secretary of Agriculture and the Administrator for Industrial Recovery. The expenses of administration are to be borne by the members of the industry proportionately upon the basis of volume of business, or such other factors as the advisory committee may deem equitable, "subject to the…