Transportation – If an executor does not live in the same place as the decedent whose estate he is administering, the executor can be reimbursed for transportation expenses when attending to the necessary business of serving as executor.
Under California Probate Code, the executor typically receives 4% on the first $100,000, 3% on the next $100,000 and 2% on the next $800,000, says William Sweeney, a California-based probate attorney. For an estate worth $600,000 the fee works out at approximately $15,000.
Keeping proper accounts
An executor must account to the residuary beneficiaries named in the Will (and sometimes to others) for all the assets of the estate, including all receipts and disbursements occurring over the course of administration.
Ways an Executor Cannot Override a Beneficiary
An executor cannot change beneficiaries' inheritances or withhold their inheritances unless the will has expressly granted them the authority to do so. The executor also cannot stray from the terms of the will or their fiduciary duty.
The general law is that executors can only claim out of pocket expenses incurred in the course of administering estate unless the will authorises payment and where sections 28 and 29 of the Trustee Act 2000 (TA 2000) apply.
Executor's expenses are disputed: What are you allowed to spend money on? In the recent case of Mussell v Patience, the court ruled that an executor who receives and pays for legal advice during the administration of an estate only needs to show that the estate's money has been spent on 'proper estate business'.
Mileage (can only be claimed when the executor travelled a long distance to carry out administration.)
Dealing with the administration of an estate can be complex. An executor cannot claim for the time they have incurred; however they are entitled to be reimbursed for the reasonable costs of the administration.
It is possible that some beneficiaries may take issue with what expenses are being claimed as ultimately, this eats into their inheritance. However, to avoid any potential conflict with beneficiaries, you can always discuss the expenses incurred with them that you feel may not come under normal expenditure.
Professional executors: a solicitor, bank or accountant will charge for their service. Look closely at the fees: it could be an hourly charge or a percentage of the estate, often between 1% and 5%.
Funeral expenses can usually be paid for from the deceased person's estate*, but you may have to wait until the probate process has been completed for funds to become available. This can take 9-12months or longer, depending on the complexity of the Estate.
Unfortunately, funeral expenses are not tax-deductible for individual taxpayers. This means that you cannot deduct the cost of a funeral from your individual tax returns. While individuals cannot deduct funeral expenses, eligible estates may be able to claim a deduction if the estate paid these costs.
The obligation of executors is only that a bank current account should be opened in the name of the executor (or administrator in the case of an Intestacy), but designated to show that it is on behalf of the estate of the deceased.
Executors can be personally liable to beneficiaries in certain circumstances, for example where they knew of a potential claim against the estate by the executor (perhaps under the Inheritance Act 1975) but distributed too soon and the estate no longer has the money to pay any award.
Once the Grant of Probate has been issued, the executor has to keep accounts and have these ready to show beneficiaries if they ask for them.
Some times beneficiaries want to see more detailed documents such as a Deceased's bank statement or pension documentation. Strictly speaking a beneficiary has no entitlement as of right to such documentation and it is your discretion as Executor whether or not to disclose it. The nature of the beneficiary's interest.
Before being granted probate, you'll need to sign a declaration of truth - the probate registry will tell you how they want you to do this. You won't need to go anywhere to sign in person. You'll need to send some documents with the forms, including: the original will (if there is one) and three copies.
Top Tips for choosing an Executor:
A family member or other beneficiary are often named as Executors in a Will. To confirm, an Executor can be a beneficiary. The person must have capacity to take on the role.
Jewelry is part of the estate and should be distributed to legal heirs along with other belongings under probate.
When an account holder dies, inform the deceased's bank by bringing a copy of the death certificate, Social Security number and any other documents provided by the court, such as letters testamentary (court documents giving someone legal power to act on behalf of a deceased person's estate) provided to the executor.
In most cases, the deceased person's estate is responsible for paying any debt left behind, including medical bills. If there's not enough money in the estate, family members still generally aren't responsible for covering a loved one's medical debt after death — although there are some exceptions.