Administration expenses

What does Administration expenses mean in American Law?

The definition of Administration expenses in the law of the United States, as defined by the lexicographer Arthur Leff in his legal dictionary is:

The person charged with administration of estate of any kind will naturally incur and pay expenses of various sorts in connection therewith, e.g., rent on leased property part of the estate, insurance premiums, attorneys’ fees, bank charges, etc. The number and type of these authorized expenses will vary depending on the kind of estate administered (e.g., between an estate in bankruptcy and a decedent’s estate) and on the terms of the particular governing statute. As a general rule, these administration expenses, if proper, receive the highest priority, i.e., they come first out of the estate, with all other lawful disbursements (except, under some

circumstances, taxes) coming only later, out of what is left.