When acting as the personal representative you’re allowed to use estate funds during the probate administration. Naturally, if the funds are misused, as the Executor or Administrator, you could be denied compensation, could be removed from office or be held personally liable for the money.
Once you have received your Letters of Administration from the Probate Court, your Probate Attorney can help guide you to get a tax ID number and the manner in which you should open an estate checking account. Once you have an estate checking account, you can begin to transfer money to pay any and all of the estate expenses. You can also deposit any money that you may receive that belongs to the estate.
A few expenses and obligations to consider are:
1. The real estate mortgage payment and other household bills
2. Any legitimate claims by creditors
3. Any estate income taxes and final personal income taxes of the decedent owed
Your probate attorney and your tax advisor should be involved in the decision to pay any and all expenses.
What you cannot do with the estate funds is pay anything other than expenses related to administering the estate. Be cautious about using the estate funds for anything that may appear to be personal expenses. Keep track of all your expenses and keep all your receipts. You’ll need to account for any expenses and actions to the probate court at the end of the case. Remember that a beneficiary might object to any use of the estate money. This is why it’s really important to gain the professional advice of your probate attorney and a tax advisor.
When you are ready to consider the real estate, to gain accurate answers to questions regarding the real estate and for help preparing, marketing, and successfully selling the real estate, contact me at 760-912-8905. I’m Charlotte Volsch, Probate Real Estate Expert.

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