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LSDefine
Simple English definitions for legal terms
administration expense
Read a random definition: Employee Retirement Income Security Act (ERISA)
A quick definition of administration expense:
Administration expense: An expense that an administrator incurs while managing and distributing an estate. These expenses are necessary and can be deducted from taxes, even if they haven't been paid yet.
A more thorough explanation:
Definition: An administration expense is a necessary cost incurred by an administrator in managing and distributing an estate. These expenses are tax-deductible, even if they have not been paid by the time the tax return is filed.
Example: Some examples of administration expenses include legal fees, accounting fees, and appraisal fees. For instance, if an estate administrator hires a lawyer to help with the distribution of assets, the cost of the lawyer's services would be considered an administration expense.
Explanation: When someone passes away, their assets and property must be distributed to their heirs or beneficiaries. An administrator is appointed to manage this process, and they may need to hire professionals to help them. These professionals may include lawyers, accountants, and appraisers, and their fees are considered administration expenses. These expenses are necessary to ensure that the estate is distributed fairly and according to the deceased person's wishes.