Are Expenses of Administration a Debt of the Estate?
Full Question:
Answer:
Expenses of administration are considered a debt, so it is not necessary to change the language, but changing the wording to debts and expenses of administration shouldn't really make a difference. Hopefully your estate has sufficient assets to pay all of the decedent's debts and expenses of administration. If so, you can be flexible in the order in which you pay debts. However, if the decedent owed more than he has in his estate, you must classify the creditors and pay them in order of their classification. The law establishes the classes of debts and their order of payment. Funeral expenses and expenses of the last illness and expenses of administering and preserving the estate take priority as debts to be paid ahead of others.
In addition to paying the claims in a certain order, you will have to identify what portion of the estate to use to pay the claims. This is often difficult since it may eliminate or limit a bequest in the will. Assets from the estate should be used in the following order to pay the debts of the estate:
1. Property passing by intestacy;
2. Personal property in a residuary state;
3. Real property in a residuary state;
4. General bequests of personal property;
5. General devises of real property;
6. Specific bequests of personal property; and
7. Specific devises of real property.
Please see the following CT statute:
Sec. 45a-110. Payment of costs for settlement of decedent's estate and fiduciary accounting.
(a) The costs, fees, charges and expenses provided for in connection with proceedings under section 45a-107 with respect to a decedent's estate shall be paid for by the executor or administrator, or if there is no such fiduciary, by the transferee filing the succession tax return under section 12-359 or a tax return under section 12-392.
(b) The costs, fees, charges and expenses provided for in connection with proceedings under section 45a-108 with respect to an accounting shall be paid by the trustee, guardian, conservator or other fiduciary.
(c) In the case of any proceeding under sections 45a-106 to 45a-112, inclusive, commenced on motion of the court such costs, fees, charges and expenses shall be paid by the party against whom such costs are assessed by the court.
(d) In all other cases, the petitioner shall pay the costs, fees, charges and expenses provided for by sections 45a-106 to 45a-112, inclusive, unless otherwise provided by law.
