Expenses of administration (also referred to as administration costs) are the required costs incurred by the administrator in carrying out the terms of an estate. These expenses can be deducted from the estate’s income, reducing tax liability. Examples of expenses include court and attorney fees.
Expenses of administration also may refer to the overhead costs of a business such as paying for officers or directors, accounting, and IT staff. These expenses benefit multiple units of the company, and often the costs are spread out and evaluated within each corporate unit.
[Last updated in July of 2021 by the Wex Definitions Team]