As long as the expense can be justified as a legitimate cost related to their role and receipts are recorded and kept as part of the estate accounts, an executor's costs can be reimbursed from the estate.
Most expenses that a fiduciary incurs in the administration of the estate or trust are properly payable from the decedent's assets. These include funeral expenses, appraisal fees, attorney's and accountant's fees, and insurance premiums. Careful records should be kept, and receipts should always be obtained.
There are certain kinds of information executors are generally required to provide to beneficiaries, including an inventory and appraisal of estate assets and an estate accounting, which should include such information as: ... Any change in value of estate assets. Liabilities and taxes paid from the estate.
The first thing to do is obtain the death certificate.
Depending on your state, the funeral home or state's records department in the location where the death occurred will have them. Get five to ten originals, with the raised seal. You'll need them to gain control of assets.
As an executor, you should be able to show this by giving a receipt or invoice that is related to the estate's administration. However, the receipt or invoice need not provide a detailed breakdown of the total charged.
Once a Grant of Probate has been issued and the administration is underway, the executor – or executors, if there's more than one – must keep accounts of the estate and be ready to show these if you ask for them.
As long as the executor is performing their duties, they are not withholding money from a beneficiary, even if they are not yet ready to distribute the assets.
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.
Reimbursement: An executor is also entitled to reimbursement from estate proceeds for legitimate and reasonable estate administration costs, such as death certificate copies, notarization of documents, the EstateExec licensing fee, and even travel costs strictly associated with managing the estate.
What an Executor (or Executrix) cannot do? As an Executor, what you cannot do is go against the terms of the Will, Breach Fiduciary duty, fail to act, self-deal, embezzle, intentionally or unintentionally through neglect harm the estate, and cannot do threats to beneficiaries and heirs.
Any expenses incurred should be reimbursed by the estate. Final bills are bills for which the full amount can only be paid once the probate process is complete, such as taxes, credit card bills, and medical bills. These bills should only be paid by the executor using money from the estate once probate has concluded.
To answer your last question first, only the executor is entitled to the deceased's financial records. ... The executor can dispose of other financial records as soon as the final account is approved by the probate court.
Beneficiaries are entitled to receive a financial accounting of the trust, including bank statements, regularly. When statements are not received as requested, a beneficiary must submit a written demand to the trustee.
Wills & Probate Solicitors
One of the Executor's duties is to inform all next of kin and beneficiaries of: The deceased's death; The appointment of themselves as an Executor/Administrator; Their inheritance – be it a specific item, cash sum or share of the estate.
Many people wonder, "Should I take an executor's fee?" They might feel uncomfortable accepting payment for helping out family members during a tough time. And there's nothing wrong with serving as an executor without pay.
The executor has a duty to collect in the estate's assets and settle any outstanding debts (or liabilities), including the funeral bill. After all liabilities have been settled, whatever's left can then be distributed to the beneficiaries. ... Residuary estate (the rest of the money in the estate)
While an executor does have the power to interpret the Will to the best of their abilities, they can't change the Will without applying for a variation of trust. In some rare cases, a Will may be changed by the court through an application process if it's obvious that some of the Will's directives are outdated.
(iv) The Executor must trace all of the beneficiaries outlined in the deceased person's Will. (v) With the assistance of a Valuer, the executor must ensure that a value of the deceased person's estate is arrived at. ... Beneficiaries are entitled to see these accounts under the law.
The executor is authorized to receive money and manage the assets of the estate, but he can't withdraw or transfer assets from the estate. At a final hearing and after notice to interested parties, the court determines who should get distributions.
To summarize, the executor does not automatically have to disclose accounting to beneficiaries. However, if the beneficiaries request this information from the executor, it is the executor's responsibility to provide it. In most cases, the executor will provide informal accounting to the beneficiaries.
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.