Administrators and Executors Need to Understand What Expenses Can Be Deducted From an Estate
As an Executor or Administrator, you have legal responsibilities—from organising funeral arrangements to valuing the deceased’s property and assets. In the process, you might worry about footing the bill for various estate-related costs.
Fortunately, the law recognises that Executors and Administrators shouldn’t be left out of pocket. Below, we explore what expenses can be deducted from an estate in the UK, what can’t be reclaimed and why thorough record-keeping is essential.
Legal Advice is an expense that can be deducted from an estate: Compare Probate Quotes>>>
What is an Executor?
An Executor (or an Administrator if there is no Will) is the individual appointed to handle a deceased person’s estate, carrying out their final wishes. Executors have a range of important duties, which typically include:
- Locating and verifying the original Will
- Registering the death and obtaining death certificates
- Organising and arranging funeral services
- Identifying and valuing the estate’s assets (property, chattels, finances)
- Notifying banks, financial institutions, and government agencies
- Settling outstanding debts and bills from estate funds
- Calculating and paying inheritance tax
- Obtaining a Grant of Probate
- Distributing the estate’s assets to beneficiaries according to the Will
What Expenses Can Be Deducted From an Estate?
Below are typical expenses that Executors or Administrators can reasonably claim back from an estate. Bear in mind that if you are an Executor or Administrator, you must keep meticulous records, including receipts and invoices, to justify all expenses claimed.
Funeral costs
Funeral costs are one of the primary expenses that you are likely to deal with and that can be deducted from an estate. These include payments to funeral directors, cremation or burial fees, and costs associated with memorial services or gravestones. You may be able to pay funeral expenses directly from the deceased’s bank account by presenting the death certificate and funeral invoice to the bank.
Probate Valuation Costs
Executors often need professional valuations for the deceased’s possessions and property. This includes:
- Probate valuation costs for chattels: Valuations of personal belongings, like furniture, antiques, jewellery, or vehicles, particularly if they are vintage or valuable. For more information see our article – Do I need an official valuation for probate. Chattels and Contents.
- RICS probate property valuation: Professional property valuations provided by a surveyor accredited by the Royal Institution of Chartered Surveyors (RICS). For more information about valuing property for probate, see our article: Property Valuations for Probate – What you need to know
Property maintenance costs
Expenses incurred maintaining the deceased’s property during probate are typically deductible from an estate. This includes utilities, probate insurance premiums, essential repairs, gardening, house clearance, and property security costs.
Legal costs
Professional fees incurred during probate, such as solicitors’ charges for handling legal aspects of probate, are considered reasonable expenses.
Loan Costs
If you take out a probate loan, which is a specialist loan which can be used to help with probate expenses such as inheritance tax then the probate loan interest can be classed as an estate expense.
Genealogy costs
Sometimes executors must identify and locate missing beneficiaries. Fees for professional probate genealogists who trace family members entitled to inherit are usually reclaimable from the estate.
Probate Registry fees
Fees for obtaining a Grant of Probate (or Letters of Administration) are expenses that can be deducted from an estate.
Advertising costs under Section 27
Executors often place statutory notices under Section 27 of the Trustee Act 1925, advertising for potential creditors. The cost of placing these notices in relevant newspapers and publications are expenses that can be deducted from an estate.
Travel and postage expenses
Reasonable travel costs incurred while dealing with estate matters and postage fees for essential communications and document handling are acceptable.
Estate agency and property sale costs
Fees associated with selling property, including estate agent commissions, conveyancing fees, and property clearance costs, can be deducted from an estate.
What Expenses Cannot Be Claimed?
While the list of expenses that can be deducted from an estate seems broad, there are notable exclusions:
- Personal Time
If you are not acting in a professional capacity (like a solicitor or accountant) you cannot claim for the hours you spend administering the estate. This includes time taken to attend to daily administrative duties like sorting paperwork.
- Unreasonable Costs
Executors should always make decisions that are in the best interests of the estate. Luxury or excessive spending (beyond the scope of what the deceased’s estate requires) cannot be claimed back.
Keeping Expense Records as an Executor
Executors must maintain transparent records of all income, outgoings, and expenses for the estate. This includes:
- Receipts and Invoices
Keep copies of every invoice and receipt for funeral bills, valuation fees, property insurance, and more.
- Mileage Logs
If you claim travel expenses, note your mileage, purpose of the trip, and dates for clarity.
- Itemised Accounts
Once you have settled the estate, you will be expected to provide an itemised account to the beneficiaries. This ensures everyone understands what deductions have been made and why.
Adequate record-keeping not only helps maintain trust and transparency with beneficiaries but also protects executors. Should anyone query the legitimacy of a cost, you will have clear documentation on hand.
Common Questions About Probate Expenses
Here are some answers to common questions about probate expenses that executors and administrators need to know:
- Can probate fees be paid from the estate? Yes, probate fees, including Probate Registry court fees, can be paid directly from the estate.
- How much are Probate solicitors’ fees? Probate solicitors usually charge a percentage of the estate’s value, typically between 1% and 5%, or an hourly rate although many now offer fixed fee probate to obtain the Grant of Probate or Letters of Administration. Fees vary depending on complexity, so it’s advisable to obtain detailed quotes from Probate solicitors before going ahead. The Probate Network can help you to obtain several Probate quotes from regulated probate practitioners.
- What funeral expenses can be deducted from an estate? All reasonable funeral costs, such as funeral directors’ fees, burial or cremation charges, memorial services, flowers, and gravestones, can be deducted from the estate.
- Who is responsible for paying deceased bills before Probate? Executors are responsible for ensuring bills like utilities, council tax, and insurance are paid from the estate assets. If insufficient funds are accessible before Probate, arrangements should be made with creditors until funds become available if possible, or you could look into taking out an estate expenses probate loan.
- What is a Probate estate expenses loan (estate expenses loan)? A Probate estate loan is a short-term loan that Executors can take out to cover essential expenses, such as inheritance tax or property maintenance before Probate is granted and estate funds become accessible. The loan is repaid from estate funds once assets are liquidated.
Need Help with Probate?
If you’re feeling unsure about which estate expenses you can claim or need guidance through the Probate process, we can connect you with experienced professionals — including arranging probate house insurance for any property in the estate — who understand both the practical steps and emotional challenges involved.
