When it comes time to administer an estate, administrators are responsible many different types of expenses that may start to accrue. These expenses can vary greatly—from tax-related costs to hourly fees charged by the personal representative. It is important to ensure that these expenses are paid in order have an orderly and smooth administration of the estate.
8 Types of Expenses That Might Occur During an Estate Administration
What types of expenses might arise during an estate administration? The following are eight examples:
- Legal fees paid to the attorney in charge of helping you administer the estate.
- Accounting fees paid to the tax advisor providing guidance on the tax-related matters pertaining to the estate.
- Funeral and burial costs that may include the cemetery plot, the tombstone, the cost of the funeral ceremony, and the cost of the memorial service.
- Costs to maintain assets of the estate, such as a house if the estate holds real estate. These costs may include insurance, maintenance, and mortgage fees.
- Probate administration costs that may include filing fees or other costs imposed by the court.
- Fees paid to investment advisors, if needed to manage the assets of the estate.
- Taxes, whether they are for estate, gift, or income tax liabilities. There are many different types of taxes that could come into play during the administration of an estate. These may include income taxes of the decedent, income taxes of the estate, federal estate taxes, and federal gift taxes.
- Fees paid to yourself for the time that you spend handling the estate administration tasks of a personal representative.
Knowing what expenses might arise during an estate administration is important.During the estate administration process, many expenses can arise. The administrators are responsible for making sure these bills get paid. An experienced attorney can help prepare you for this process. We encourage you to contact us today at (714) 459-5481 for more information.