Estate administration can take months to complete and may require a substantial investment of time and effort from the personal representative (also known as the executor). There are also many expenses that the estate itself must cover.
Personal representatives generally need to be fastidious about ensuring that they properly use the estate’s resources to cover these expenses. If they fail to do so and make distributions to beneficiaries or heirs before paying them, they could face personal financial responsibility for the obligations they did not address.
What expenses may require payment using estate resources?
1. Probate costs
Every hearing in probate court and consultation with an attorney may generate expenses. The estate itself is generally responsible for those costs.
The personal representative administering an estate can use estate resources to cover probate costs, including the legal representation they require. Having enough resources to cover probate costs should be a priority — particularly in scenarios where there are disputes about the estate or when intensive court oversight is necessary.
2. Taxes owed by the decedent or the estate
The personal representative usually needs to file an income tax return on behalf of the deceased. They may also need to file a return on behalf of the estate itself. If estate administration results in the sale of estate resources, an estate income tax return may be necessary.
If the estate is particularly large, then estate taxes may be due as well. Estate taxes apply to estates that are worth at least $13.99 million or more in 2025. While the state does not impose an estate tax, the federal government can collect taxes from particularly large estates.
3. Outstanding debts
Any personal debts owed by the decedent generally become the responsibility of their estate. Credit card balances, loans and other financial obligations may require repayment during the probate process. The personal representative of an estate generally needs to communicate with creditors by sending letters and publishing notice to provide them with an opportunity to make repayment claims.
Personal representatives who make costly mistakes may sometimes face financial responsibility. Having experienced legal guidance makes it easier for personal representatives to identify and address financial obligations during estate administration.
