I’M AN ADMINISTRATOR OR EXECUTOR OF A GEORGIA ESTATE - What can be reimbursed to me?

Being appointed as the Estate Representative (an Administrator for estates without a will or an Executor for estates with a valid will) of an Estate in Georgia can prove to be a daunting and overwhelming task.  There is a lot to learn and handle in a very short period of time.  This laundry list of to-do items does not come without a cost.  Legal fees, debts, publication fees, and clean up fees are among only some of the costs an Estate Representative in Georgia may have to spend up-front in order to get the estate opened and moving.

We’ve seen numerous families argue about who gets what when everything is finally disbursed, but often, people are shocked to learn that the Estate Representative will be paid first - both in reimbursements and, likely, in commissions.  These payments will be made prior to any disbursements of estate assets to the heirs or beneficiaries.  Often Estate Representatives are also heirs or beneficiaries of the same estate they are representing.  An heir or beneficiary of the estate is a separate role than the Estate Representative and, thus, the compensation and disbursements must be viewed separately.  Any disbursements they receive as the Estate Representative, whether as a reimbursement or as a commission, is totally separate and apart from anything they may receive as the heir or beneficiary. 

What can be reimbursed?

Amounts expended by the Estate Representative to open, maintain, and preserve the Estate assets are generally reimbursable. The Estate Representative has the duty to open the estate and once opened, must maintain the assets of the estate for the benefit of the heirs and/or beneficiaries of the Estate.

While not exhaustive, here is a list of what may be reimbursed to the Estate Representative who uses their personal funds to open or maintain the Estate:

• Funeral or Memorial Expenses

• Burial or Cremation

• Payment of Debts, including payment of a mortgage or utility bills while the Estate is not yet opened or is pending if there are not yet any cash flow assets of the Estate

• Legal and CPA Fees

• Court Filing Fees

• Attorney Fees

• Maintenance, repair, and/or replacement of assets (for example, broken windows or HVAC)

“Other reasonable expenses”

• Meals

• Lodging

• Travel/Mileage

• Costs for the use of a landfill to dispose of non-disburseable or non-sellable assets

• Moving Boxes and supplies

• Postage

• Labor fees for clean up or maintenance of assets

As to lodging, travel/mileage, meals, etc. consumed or needed to be utilized by the Estate Representative when having to travel to care for Estate assets or business. It would not, however, be considered a reasonable expense to cover the lodging, meals, travel, etc. for the Estate Representative's entire family if they were merely taking a vacation and the Estate Representative handled Estate business while on that vacation.

If an Estate Representative is going to seek reimbursement for their personal expenditures on behalf of an estate, bank records such as canceled checks and/or bank statements will not be sufficient. The Estate Representative must be able to prove, whether to a Court, to the Estate Attorney, or to the heirs and/or beneficiaries that expenditures were made on behalf of the Estate and that they were reasonable. Thus, it is always a good idea for an Estate Representative to not only maintain their bank statements and canceled checks, but also receipts. It is also wise to provide copies and details to the Attorney representing the Estate so that expenditures can be properly presented and explained to the Court and the heirs and/or beneficiaries.

What is the Estate Representative’s commission?

As previously mentioned, the Estate Representative is entitled to receive a commission depending on the type of estate and the provisions of the will, if any. If there is a valid will and it states that there is to be no commission or sets a flat or hourly rate for the time of the Estate Representative, that will define how much the Estate Representative is paid. In the case of an hourly commission, the Estate Representative should again keep meticulous and detailed records of the time they expend and what they were doing during that time.

If, however, there is no will, an invalid will, or the will is silent as to commissions, the Estate Representative will be paid at a rate set by the State of Georgia. That rate is calculated on the amount of money and/or valuations of assets both coming into the estate and out of the estate. This process can be a lot trickier to track, determine, and disburse.

The duties and responsibilities of an Estate Representative are numerous, especially when it comes to the financial duties and responsibilities. Meticulous details and records must be kept and maintained. Final calculations must be exact. It can become overwhelming very quickly. We have found that many people opt to open their probate case pro se, but then heirs and beneficiaries begin fighting with one another when it comes to reimbursements and commissions because it essentially depletes what would be their disbursement. Without good records, or an attorney to explain how this process works and the order of payments, families can (and have) ripped themselves apart at a time when they should be growing together after the loss of a loved one.

Why Experienced Legal Guidance Matters

Working with an experienced attorney like Your Hometown Attorney™, where we specialize in estate planning, probate, and real estate means that you are supported the whole way through, from opening the estate to closing it. We help you maintain records and help you obtain accurate calculations. We keep the heirs and beneficiaries informed about the various roles of Estate Representatives, heirs, beneficiaries, expenses, reimbursements, commissions and disbursements. We keep everyone updated throughout the process as things change (and they often do) to help minimize the conflict among the family members and lessen the stress on the Estate Representative.

If you have already opened your loved ones probate estate in Georgia, but are overwhelmed with the process of expense classification and need some guidance or assistance to see the estate through to the finish line, we’re here to help you, too! While we prefer to be involved from the beginning, we can still step in at the end to help close out the estate as seamlessly as possible.

IHave more questions or interested in experiencing the difference with Your Hometown Attorney™? Give us a call at 706-359-3332 or e-mail us at frontdesk@turnerjoneslegal.com today!