[WSBAPT] handling expenses incurred by nominated PR who died before appointment

[Joshua McKarcher]

Chandra,

In my book, all (valid, reasonable) post-death administrative expenses are expenses of the estate, reimbursable to whoever paid them (by effectively loaning the estate the funds). Non-lavish funeral expenses, legal fees you describe, and any other fee or cost ordinary for an estate to incur is an administrative expense. I don’t personally think it matter who was the PR or even IF there was a PR at the time it was incurred. If it was reasonable and necessary to preserve the estate or achieve the appointment of a PR nominated by the decedent’s will or trust, it’s administrative and payable from estate funds to whoever can prove they paid it.

The analysis I run through my brain is this (as with most things in probate/trust land): If I’m standing in front of a judge three days, months, or years from now on a petition complaining about the administrative expenses paid (or whatever issue), can I (1) justify each expense as being necessary or of benefit to the estate, or so de minimis as to be plainly unworthy of professional fees to “run it to the ground” as for other expenses, etc., and (2) connect the dots with sufficiently descriptive documents, e.g., invoices (including contemporaneously handwritten notations on receipts if that’s all we’ve got), check images, credit card receipts, etc.?

In this thought process, I ask myself, “Am I going to put my name on the line to justify this expense?” I will happily question a fiduciary client to ensure they are “satisfying me” before telling them “Yes, you bet, that seems reasonable to pay from the estate.” Because that’s what I’m going to be saying to the judge in my scenario above.

I hope that helps! Have a good weekend! Best, Josh

Joshua D. McKarcher
McKarcher Law PLLC
537 6th Street
Clarkston, WA 99403
(509) 758-3345
(509) 758-3314 (fax)
josh at mckarcherlaw.com<mailto:josh at mckarcherlaw.com>
www.mckarcherlaw.com<http://www.mckarcherlaw.com>

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Chandra Lewnau
Sent: Thursday, June 16, 2022 4:11 PM
To: WSBA Probate & Trust Discussion List <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] handling expenses incurred by nominated PR who died before appointment

I have a probate where it took quite a while to have a PR appointed because the first two corporate nominees were slow to waive the right to serve. Meanwhile, the #3 nominee, who was also Decedent's agent and trustee of a trust he set up, went ahead and paid for his funeral expenses and some legal fees in trying to get nominated PR 1 and 2 to waive. This person then fell ill and died before being appointed. Her daughter agreed to serve as PR and was appointed by the court. I have 2 questions:

Can I just treat the expenses of the #3 nominee/informal PR who was never formally appointed the same as any other expenses of administration? That is, can the actual PR just pay them from estate funds?

No probate was opened for the informal PR. The daughter/PR is both her only heir and the successor trustee of her living trust. Can daughter just pay herself, or do I need to do something more to establish that she is paying the proceeds to the person entitled to them?
Thanks in advance.
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Chandra M. Lewnau  |  Attorney
WALL GROUP LAW
51 W. Dayton St., Suite 305  |  Edmonds, WA 98020
Tel 425.670.1560  |  Fax 425.361.1512  | http://www.wallgrouplaw.com<http://www.wallgrouplaw.com/>
THIS ACCOUNT IS FOR MAILING LIST PURPOSES ONLY.
For faster response email chandra at wallgrouplaw.com<http://wallgrouplaw.com>
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