[WSBAPT] Payment to non-PR beneficiary for labor performed to sell estate asset?

[Amy Goertz]

I would not say the estate MUST pay the person who performed the work, but the PR should pay them a reasonable amount that they would have paid a non-beneficiary to do the work. This is a cost of administration. To avoid any issue, I would just make sure that the payments are reasonable for the tasks being done.

Typically, a creditor payment in an estate refers to a debt incurred by the decedent, whereas a cost of administration in incurred by the PR/estate.

I would argue that the worker/realtor being a partial beneficiary is irrelevant to whether he or she is being paid to handle tasks that would otherwise require someone to be hired to take care of, unless those tasks would normally be part of her listing the property.

Amy

Amy J. Goertz, J.D.
Goertz & Lambrecht PLLC
amyjgoertz at icloud.com <mailto:amyjgoertz at icloud.com> 

1.888.926.2607 phone
1.877.684.1627 fax

Address for correspondence:
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Additional office locations:
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Goertz & Lambrecht PLLC
www.goertzlambrecht.com <http://www.goertzlambrecht.com/>







> On Mar 14, 2025, at 10:17 AM, Ryan Castle <ryan at ryancastlelawfirm.com> wrote:
> 
> All,
> 
> Must estate pay to a non-PR beneficiary who performed work to prepare a deceased's house for sale as part of the estate? If so, would that be an administrative expense, or a payment to a creditor? These are tasks such as coordinating and meeting with contractors to make repairs. The PR would normally perform these functions but she lives out of state and is tasking the non-PR beneficiary with these activities. This same non-PR beneficiary will also act as real estate agent to sell the property, which the deceased specifically stated in his will. This same non-PR beneficiary will also receive part of the proceeds from the property sale per the will. 
> 
> --
> 
> Ryan Castle (he/him)
> Castle Law Firm, PLLC
> Managing Attorney
> T: 360-592-3504
> 1313 E. Maple St., Suite 790
> Bellingham, WA 98225
> https://ryancastlelawfirm.com/
> 
> 
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