May costs of administration and legal fees be paid out of the estate? What liabilities or debts will the estate be responsible for?

Any cost and legal fees that are beneficial to the estate can be paid with estate funds.  However, laws specifically dictate the order and priority of payment. The administrator of the Estate is required perform a diligent search and discover all of the creditors and liabilities and give them due notice.  It is very important that the Administrator use extreme caution when making certain payments to creditors prior to a court order because the court may require the Administrator to personally pay back any improper payments.  As such, Compton Law’s advice is to obtain court approval or speak to an attorney prior to making any payments or dispersing any estate assets.