Q: Am I entitled to more as personal representative in Dad's estate settlement?
My father got sick and died from a medication he had taken. He started legal process before death and I was appointed personal representative through probate. I have done all of the running and paid for things out of my own pocket and am wondering if all has to be divided equally or at my own discretion.
Thank you for your time and help with this matter.
A: As PR you CAN claim reimbursement from any 'out of pocket' expenses. Be sure to document the payment and amount. This 'reimbursement' is usually not an issue, and you probably SHOULD reimburse yourself.
You can also claim 'wages' for the time and effort put into the settlement. This would be taxable income, so be careful. You'll have to pay quarterly estimated taxes when you receive the money and issue yourself a 1099 (if it is more than $600 per year).
In GENERAL I advise people it is better to inherit a fraction 'tax free' than charge a fee, go through the administrative expense of documenting and reporting that fee, and then paying taxes on top of it.
Consult with your attorney (what? you don't have one? GET ONE!) handling the estate, and follow his advice and guidance as state laws may impact this further!
--This answer is offered for informational purposes only and does not constitute legal advice or create an attorney/client relationship. I am licensed to practice in Michigan only. Please seek competent local legal help if you feel you need legal advice!
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