Executor Travel Expenses: Are They Deductible?

Being an executor is a daunting task, and expenses can seem enormous. The good news is that executors do not have to pay these expenses out of their own pockets. Most expenses incurred while settling an estate are paid for by the estate, which is composed of the deceased’s savings, assets, etc. However, not all expenses qualify for reimbursement. So, what expenses can be covered by the estate?

Travel expenses for out-of-state executors

If you are an out-of-state executor, you can claim travel expenses while working on behalf of the estate. These expenses may include anything from gas to car rentals, plane tickets to taxi fares. You can file for reimbursement from the estate for these expenses, but be aware that there may be some tension with the family members of the deceased over this.

The laws pertaining to out-of-state executors vary from state to state, so be sure to check what rules apply in the relevant location. Several states only allow out-of-state executors who are related to the person who passed away by marriage, blood, or adoption. Others require the appointment of an in-state agent and/or the purchase of an executor bond.

Most states allow expense reimbursement for estate executor duties, but not all expenses qualify. Generally, executors can request reimbursement for funeral and burial or cremation services, reasonable costs associated with administering the estate, professional fees, real estate maintenance costs, property sale expenses, pet care costs, transportation costs, death certificate costs, taxes, and attorney's fees.

It is important to note that not all costs that appear to be related to an estate are allowed by the probate court. For example, while funeral and burial expenses are covered, other costs such as travel expenses for family and friends attending the funeral are not reimbursable. Additionally, expenses incurred before the decedent's death, such as cleaning or moving services, are generally not reimbursable unless there was a prior agreement about reimbursement.

Mileage reimbursement

As an executor, you can be reimbursed for travel expenses when attending to the necessary business of serving as an executor. This includes mileage reimbursement for the use of a personal vehicle to travel. The probate court can help you determine the mileage reimbursement rate.

If you travel to the home of the will writer, for example, to help maintain the home for sale, you can be reimbursed at the government's mileage reimbursement rate (which was 58 cents per mile in 2019). Tolls are also reimbursable.

It is recommended that you combine necessary tasks into necessary trips to be a better steward of the estate's money. For example, if you have to make an appearance in probate court, that might also be a good time to meet with the realtor and appraiser, or oversee necessary home repairs before the sale.

Flights and car rentals

As an executor, you can be reimbursed for your travel expenses, including flights and car rentals, when managing the estate of the deceased. However, it is important to keep a few things in mind.

Firstly, combining necessary tasks into a single trip is a good way to be a good steward of the estate's money. For example, if you need to make an appearance in probate court, you could also meet with the realtor and appraiser or oversee any necessary home repairs during the same trip. This will reduce the overall travel costs for the estate.

Secondly, while you are entitled to reimbursement for reasonable expenses, beneficiaries may complain that you are travelling too much or not enough. They may also claim that you are being self-serving if you charge too many expenses to the estate. Therefore, it is important to keep expenses reasonable and necessary, and to keep careful track of all receipts and justifications for the expenses.

Thirdly, if you are an executor who is also a beneficiary, remember that by charging expenses to the estate, you are reducing the collective inheritance pool that will be divided between the beneficiaries, including yourself.

Finally, if the executor lives out of state or in a different country, the probate court may require the appointment of a local, in-state agent to manage the estate in the executor's absence. This could potentially reduce the need for flights and car rentals.

In conclusion, while flights and car rentals can be reimbursed for an executor, it is important to carefully consider the necessity and reasonableness of these expenses, keep detailed records, and be prepared to justify them to beneficiaries and the probate court.

Meals and accommodation

In addition to meals, executors can also be reimbursed for other travel expenses such as gas, flights, rental cars, and mileage reimbursement. It is important to note that if the executor is also a beneficiary, they are effectively taking from the collective inheritance pool that will be divided among the beneficiaries.

Executors have a legal right to reimbursement for out-of-pocket expenses before creditors are paid. This ensures that they are not left out of pocket just for helping to close an estate. To successfully request reimbursement, executors should maintain accurate records, including all receipts, invoices, and other proof of payments related to estate expenses. A thorough accounting of expenses will increase the likelihood of reimbursement and help to avoid questions from beneficiaries.

Executor's commission

An executor's commission is a payment made to the executor of a will for the time and effort spent carrying out their duties and administering an estate. The role of an executor can be challenging, stressful, and involve a significant amount of work, hence why they are often compensated.

Executors can also be reimbursed for any out-of-pocket expenses incurred while administering the estate, such as transportation expenses if the executor does not live in the same place as the deceased. It is important for executors to maintain careful records of all expenses and fees to avoid any issues with beneficiaries or heirs.

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