Alabama Probate Guide: Paying Executor Fees and Expenses the Right Way
In Alabama probate, an executor (personal representative) does not need to file a formal claim for administrative expenses like other creditors must do. However, there are important rules regarding timing, reasonableness, documentation, and approval of those expenses.
Key Points About Executor Administrative Expenses in Alabama:
- Priority of Payment
Under Ala. Code § 43-2-371, administrative expenses (including executor’s fees and expenses incurred in managing or preserving the estate) are given top priority in the order of estate payments — even before creditor claims and distributions to beneficiaries.
- No Need to File a Creditor Claim
Executors do not need to file a claim under Ala. Code § 43-2-350 et seq. like outside creditors. Instead, they are entitled to direct reimbursement from the estate for reasonable and necessary expenses incurred in administering the estate.
- Timing and Reimbursement
Executors can reimburse themselves from estate funds as expenses are incurred, so long as:
- The estate has sufficient liquidity.
- The expenses are reasonable, necessary, and documented.
- The executor keeps clear records and receipts.
- The probate court has not otherwise restricted disbursements.
In practice, many executors will wait until an interim or final accounting is approved by the court or agreed to by the beneficiaries, especially for larger reimbursements, to avoid disputes.
- Court or Beneficiary Oversight
If the executor is reimbursing themselves:
- It’s best practice to either get court approval (especially in supervised administration) or
- Have beneficiary consent, especially if distributions or funds are contested.
The final settlement or accounting is where the executor must justify all administrative expenses and fees. If a beneficiary or even the court objects, the probate judge may review for abuse or excessiveness.
Need Help Navigating Executor Duties or Probate in Alabama?
At McCartha Law, we guide executors and families through the probate process with clarity and confidence. If you have questions about executor expenses, reimbursements, or how to avoid disputes with beneficiaries, we’re here to help.
Call us today at (256)270-4233 or schedule a consultation online to make sure your responsibilities are handled correctly—and your rights as an executor are protected.