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Can I Reimburse Myself From An Estate Account As an Executor or Administrator?

Once the fiduciary receives letters and is appointed executor or administrator by the surrogate’s court, the fiduciary may provide reimbursements.
February 5, 2025
Home > Blog > Can I Reimburse Myself From An Estate Account As an Executor or Administrator?

If you are an executor or administrator of an estate you are permitted to use the estate account to reimburse you or others for expenses once you are appointed as the estate’s fiduciary and granted letters testamentary or letters of administration.

Once the fiduciary receives letters and is appointed executor or administrator by the surrogate’s court, the fiduciary may provide reimbursements from the estate account for expenses related to administering the estate. These expenses include funeral costs, such as fees for attorneys, accountants, and other professionals, as well as storage fees for the deceased’s belongings.

Be Aware of Creditor Claims Against An Estate

The seven months following the appointment of the executor or administrator is called a creditor claim period. This is the period during which creditors may pursue claims against the estate. Debts in New York are legally required to be paid in this order before any distribution to heirs: reasonable funeral costs and estate administration expenses, federal debts, state debts, property taxes assessed before the person died, court judgements, medical bills, unpaid loans, rent, credit card bills, etc.

What If a Creditor Does Not File a Claim Against An Estate in the Required Time Frame?

The Surrogate’s Court Procedure Act states that if a creditor fails to file a claim against the estate within seven (7) months of letters being issued to a fiduciary, then that fiduciary will not be personally liable for any funds distributed to beneficiaries or distributees in good faith. Even after the seven months have elapsed, if a fiduciary makes a distribution while the estate still had unpaid creditors, the fiduciary will be personally liable if they knew or should have known, about a claim.

What If There is Not Enough Money in an Estate to Cover All Debts?

If a decedent’s estate does not have sufficient assets to satisfy all claims, the bequests stated in a will may need to be reduced so that the creditors’ claims can be paid. Creditors have priority regarding the payment of estate assets. It is very important to wait the seven months and make sure all creditors of the estate are paid. Otherwise, any money distributed to a beneficiary or heir at law may need to be returned to satisfy the estate’s debts. It is also possible that assets that were not included in the estate, such as joint assets, be used to pay the claim.

Reimbursing Yourself as an Executor Requires Careful Planning

While the estate’s fiduciary, an executor or administrator, may reimburse himself or herself for expenses paid during the administration of the estate, it is wise to make sure the seven-month creditor period has elapsed and all creditor claims have been paid first. It is important for an executor or administrator to know his or her role and duties. Fiduciaries should be candid with beneficiaries or heirs at law regarding time frames and priorities by which the fiduciaries must abide.

By Britt Burner, Esq. & Erin Cullen

Britt Burner, Esq. is a Partner at Burner Prudenti Law, P.C. focusing her practice areas on Estate Planning and Elder Law. Erin Cullen is a graduate of the Maurice A. Dean School of Law at Hofstra University. Burner Prudenti Law, P.C. serves clients from New York City to the east end of Long Island with offices located in East Setauket, Westhampton Beach, Manhattan and East Hampton.

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