What estate property expenses can I track and get reimbursed for before it’s sold?

Short answer: Under Michigan law, a personal representative (executor/administrator) may pay and seek reimbursement from the estate for reasonable, necessary expenses incurred to preserve and manage estate property before sale. Typical reimbursable expenses include property insurance, utilities, ordinary repairs (to prevent loss or deterioration), lawn care, security, routine maintenance, mortgage payments, property taxes, advertising and sale-related fees, and professional fees (realtor, appraiser, licensed contractor, CPA, attorney). Large or unusual expenses may require court approval or beneficiary consent. Keep thorough records and submit receipts and an accounting to the probate court or beneficiaries to secure reimbursement.

Detailed answer — what counts as a reimbursable expense in Michigan

When someone dies, their estate must be protected and managed while the personal representative settles affairs and prepares assets for distribution. Michigan’s Estates and Protected Individuals Code (EPIC) governs administration of estates, and the probate court supervises that administration. In practice, courts and probate practice allow the estate to pay reasonable and necessary administrative expenses out of estate assets before distribution. Reimbursement is intended to prevent loss to the estate and to fairly allocate the cost of administration.

Common categories of expenses that are generally considered appropriate to track and seek reimbursement for are:

• Property insurance: Premiums to keep hazard and liability insurance in force while the estate owns the property.
• Utilities and essential services: Electricity, gas, water, and sewer to prevent freeze damage, mold, or other deterioration.
• Security and vacancy maintenance: Alarm monitoring, boarding up windows, security patrols, or lock changes to reduce theft or vandalism.
• Routine repairs and maintenance: Emergency or ordinary repairs needed to preserve value (fixing a leaking roof, repairing a broken furnace, clearing drains, shoring up hazards). Distinguish repairs (preservation) from improvements (which add value and may be treated differently).
• Lawn, snow removal, and exterior upkeep: Lawn mowing, snow clearing, gutter cleaning, and debris removal to avoid municipal fines and maintain curb appeal for sale.
• Mortgage, HOA, and property tax payments: Payments necessary to avoid foreclosure, liens, or penalties while the estate holds the property.
• Realtor, appraisal, and marketing costs: Real estate broker commissions (usually paid at closing), professional appraisal fees, photography, and advertising related to selling the property.
• Inspection and contractor estimates: Professional inspections and bids that assist in pricing and preparing the property for sale.
• Permits and code compliance work: Minor work necessary to bring property into compliance when required for sale or to avoid municipal citations.
• Moving, storage, and clean-out: Reasonable costs to remove personal property or hazardous materials and to make the property sale-ready.
• Legal, accounting, and probate fees: Attorney fees for probate administration, tax preparation, and court filing fees—when they are reasonable and authorized by the court or statute.

Expenses that are less likely to be reimbursed (or that require special handling) include major capital improvements (an add-on room, major renovation) that change the character of the property. Those costs may be treated as increases to the asset’s value rather than simple administration costs; payment or reimbursement often requires beneficiary consent or court approval. Personal expenses that are unrelated to estate management are not reimbursable.

How reimbursement actually happens

Typical steps a Michigan personal representative follows to get reimbursed:

1. Document expenses as you incur them. Keep original receipts, invoices, contracts, cancelled checks, and bank statements. Note dates, vendors, purpose, and whether the work was emergency, routine maintenance, or improvement.
2. Use an estate bank account. Deposit estate funds and pay estate expenses from that account when possible. If you pay personally, clearly document the payment and your right to reimbursement in the estate records.
3. Get beneficiary consent or court approval for large or unusual expenses. If beneficiaries agree in writing to a major expense (for example, a renovation to increase sale price), attach that consent to the estate file. For disputed or high-cost items, seek probate court permission before committing funds.
4. File inventories and accountings with the probate court. Michigan probate procedure requires periodic accountings and a final accounting; these are the routine opportunities to ask the court to authorize payment from estate assets for administration expenses, including reimbursements to the personal representative.
5. Paying claims and distribution priority. Administration expenses (including approved reimbursements) are typically paid before distributions to heirs or beneficiaries, subject to court orders and statutory priority rules.

Practical examples (hypotheticals)

Example A — Emergency repair: A frozen pipe bursts in January and floods the basement. The personal representative hires a plumber and a restoration company and pays $6,000 to make emergency repairs and dry out the house. This is a reasonable preservation expense; the estate should reimburse the representative and pay the vendors from estate funds.

Example B — Cosmetic renovation: The personal representative wants to spend $30,000 replacing all flooring and updating the kitchen to increase sale value. Because this is a large improvement, the representative should obtain written consent from beneficiaries or court approval before spending estate funds; otherwise the rep risks having to absorb the cost personally or face an accounting dispute.

Recordkeeping checklist — what to track for each expense

• Date of expense
• Payee name and contact information
• Detailed invoice or receipt
• Method of payment (estate account, check number, card)
• Purpose (e.g., emergency repair, routine maintenance, insurance payment)
• Beneficiary notices or consents (if any)
• Any court orders authorizing payment

When to get the probate court involved

Get the court involved when expenses are:

• Large in amount relative to the estate.
• Likely to be controversial among beneficiaries.
• Capital improvements that materially change the property.
• Needed before the personal representative has formal authority (for example, before appointment by the court).

Filing a petition for instructions or for authorization to expend estate funds gives the personal representative formal protection. The probate judge can sign an order allowing specific expenditures or setting the method of reimbursement.

Helpful hints

• Open an estate bank account quickly and pay expenses from that account whenever possible to keep records clean.
• Always get multiple bids for large repairs or improvements and keep those estimates in the file.
• Document emergencies thoroughly, including photos and a written explanation of why immediate action was necessary.
• Notify beneficiaries of major steps and get written consent for non-emergency, large expenses when you can.
• Consult the probate court clerk about local rules and forms for accountings and petitions for authorization.
• Keep communications professional and in writing—email or letters create a clear record of decisions and consents.
• Ask your accountant about tax consequences (property tax refunds, final income tax filings) when you pay or get reimbursed for expenses.

Where to look in Michigan law and court resources

Michigan’s estate administration is governed by the Estates and Protected Individuals Code (EPIC). The state legislature’s website and the Michigan Courts website provide statutes, forms, and local probate court contact information. If you need a precise statutory reference or forms, start at the Michigan Legislature site: https://www.legislature.mi.gov/ and at the Michigan Courts probate information pages: https://courts.michigan.gov/. The probate court in the county where the decedent lived issues local procedures and can advise on filing accountings or petitions for authorization.

Important: This article explains common practice and practical steps under Michigan law, but specific estates can raise unique issues. If you face contested claims, large expenditures, or complex assets, consider asking the probate court for guidance or consulting a lawyer.

Disclaimer

This is general information only and does not constitute legal advice. I am not a lawyer. For advice about a specific estate, consult a licensed Michigan probate attorney or contact the probate court in the decedent’s county.