Being an executor is a big responsibility. Not only do you have to manage the deceased’s estate, but you also must deal with the financial side. This can be daunting, especially if you need clarification on what expenses you can and can’t claim. From managing the funeral to dealing with the estate, let’s look at being an executor in Waldorf, Maryland, and claiming expenses.
The costs of administering an estate can be high, and the executor often bears them. If you are appointed as executor of an estate, you can claim certain expenses incurred during your duties.
Some common examples of expenses that an executor may claim include:
- Court filing fees
- Probate fees
- Attorney’s fees
- Accountant’s fees
- Appraiser’s fees
- Costs of advertising the estate sale
- Travel expenses incurred in connection with the estate administration
The deceased’s debts
If the deceased had any outstanding debts, the executor might be responsible for paying them off from the estate.
Inheritance taxes
In some states, inheritance taxes are due at the time of the deceased’s death. In others, taxes may not be due until after probate has been completed. Therefore, it is important to check with your state’s tax authorities to determine when taxes are due.
Court fees
An executor can claim court fees as an expense in the administration of an estate. Court fees are the costs associated with filing a petition for probate and estate administration in the probate court.
Filing Fees
Filing fees are the costs associated with filing paperwork with the court. This includes the cost of filing the initial petition for probate and any subsequent pleadings or motions.
Executors can also claim the cost of filing tax returns and other required documents.
Notary Fees
Notary fees are typically used in covering the costs of authenticating documents.
Travel fees
When you are planning to travel as an Executor, there are a few things you need to consider. Here we will outline some of the main items you should include in your travel budget:
- Tickets
- Meals
- Gas
- Lodging
Legal fees
Claim reimbursement for any legal fees incurred in connection with the administration of the estate.
Executor fee
An executor is entitled to reasonable compensation for their time and effort in administering the estate. The executor fee is typically a percentage of the estate’s total value and is set by law.
Costs of selling assets
You can recoup some of the costs associated with selling assets such as advertisements.
Selling assets can be a lot of work, and it’s crucial to have all hands on deck. Keep good records of all your expenses so you can easily submit them when it comes time to file your final accounting with the court.
Funeral and burial expenses
An executor can claim burial and funeral expenses for the decedent as part of their administration of the estate. However, these expenses must be reasonable and must be incurred following the decedent’s wishes.
Know what to expect as an executor
Executors are typically paid out of the estate’s assets after all debts and expenses have been paid. If you’re considering serving as an executor, it’s essential to understand what compensation you may be entitled to so that you can plan accordingly.