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Detailed answer — What expenses can you track and get reimbursed for maintaining estate property before it’s sold?

When someone dies and you act as the personal representative (executor or administrator) for the estate in Minnesota, you must preserve estate assets until you can distribute them or sell them. Minnesota law gives personal representatives the authority to manage and protect estate property, and it allows the estate to pay reasonable expenses of administration. For the estate to reimburse you or others for costs you incur, follow the rules below: keep clear records, pay only necessary and reasonable expenses, and seek court approval for unusual or large items when required.

Below are common categories of expenses that are typically considered reimbursable from estate funds in Minnesota, provided they are reasonable, documented, and related to preserving or preparing property for sale:

• Insurance: Premiums for homeowner’s, fire, flood, or liability insurance needed to protect the property while it is part of the estate.
• Property taxes and assessments: Current property taxes, special assessments, and installment payments required to avoid penalties or foreclosure.
• Mortgage, loan, and HOA payments: Ordinary mortgage payments, home equity obligations, and homeowners’ association dues to prevent default, foreclosure, or fines. (If the estate will not benefit from continuing payments, discuss with the court or counsel.)
• Utilities and basic services: Electric, gas, water, sewer, and trash service necessary to maintain the property between the decedent’s death and the sale.
• Security and winterization: Costs for locks, alarm systems, boarding broken windows, winterizing plumbing, and other measures to prevent damage, vandalism, or theft.
• Routine maintenance and upkeep: Lawn care, snow removal, pest control, cleaning, and small repairs that keep the property marketable and protect value.
• Repairs and improvements to permit sale: Necessary repairs or cosmetic work that are reasonable and expected to increase the likelihood of a sale (e.g., fixing a leaking roof, repairing major safety defects). Major renovations that change the character of the property usually need prior court approval.
• Appraisal, inspection, and inspection-related fees: Professional appraisals, home inspections, environmental or structural inspections needed to value or market the property.
• Advertising, marketing, and real estate agent fees: Costs to list and market the property, including realtor commissions paid at closing (commissions are typically paid from sale proceeds and must be reasonable).
• Staging, moving, and storage: Reasonable costs to remove the decedent’s personal property, store household goods, or stage the home to facilitate sale.
• Closing costs and title-related fees: Title searches, title insurance, recording fees, and typical costs associated with transferring property at sale.
• Professional fees: Fees for attorneys, accountants, appraisers, property managers, or contractors hired to preserve, value, or sell the property (reasonable, documented professional fees are generally payable from the estate).
• Costs of removal and disposal: Reasonable expense to remove trash, hazardous materials, or items that prevent sale or pose legal/health risks.

What is not usually reimbursable without court permission:

• Expenses that are unnecessary or unrelated to preserving or selling the estate property.
• Excessive repairs or renovations that materially change the property’s character without a clear, documented financial benefit to the estate.
• Personal expenses unrelated to administration (e.g., personal travel, personal convenience costs).
• Payments that create a conflict of interest or benefit the personal representative personally unless fully disclosed and approved by the court and the beneficiaries.

Key procedural points under Minnesota practice

• Document everything. Keep invoices, receipts, cancelled checks, contracts, photographs (before and after), and written estimates. The court and beneficiaries will expect a full accounting of estate expenditures.
• Use estate funds, not personal funds where possible. If you must front costs personally, clearly label and document them and keep original receipts so the estate can reimburse you later.
• Get estimates and, for large expenditures, multiple bids. This shows reasonableness and fiduciary care.
• Consider informal beneficiary approval for routine items. If all beneficiaries agree in writing to certain expenses, that can avoid court disputes later. Keep the writing with estate records.
• Seek court authority for unusual actions. If you expect to spend a large amount, make major repairs, or sell property at a private sale to an interested party, get the court’s approval in advance (a petition for instructions, approval, or sale). The Minnesota probate court can authorize these actions and confirm reimbursement for the costs.

Relevant Minnesota law

Minnesota’s probate statutes establish the duties, powers, and responsibilities of personal representatives and allow the payment of reasonable expenses of administration from estate assets. For the statutory framework, see Minnesota Statutes, Chapter 524 (Probate Code): https://www.revisor.mn.gov/statutes/cite/524. The Minnesota Judicial Branch also provides practical guidance for personal representatives and probate administration: https://www.mncourts.gov/Help-Topics/Probate.aspx.

When to involve the court or an attorney

• If beneficiaries object to a reimbursed expense.
• If you are unsure whether an expense is “necessary” or “reasonable.”
• If a proposed expense is unusually large or could reduce the estate in ways that affect creditor or beneficiary rights.
• If you or the estate will be dealing with potential creditor claims or tax consequences tied to payments you make.

Practical example (hypothetical)

Suppose you are the personal representative for an estate that includes a single-family home. The house is vacant and the furnace fails in winter. You hire an HVAC contractor to make an essential repair to prevent frozen pipes and further damage, pay the current property taxes, keep the utilities on, hire a realtor, and obtain an appraisal and title search to prepare for sale. You should: save all invoices; pay these items from estate funds if possible; include them on the estate accounting; and, if any repair will cost a very large sum (for example, a major structural renovation), seek court approval before proceeding. Reasonable costs like the furnace repair, utilities, taxes, and appraisal are typically reimbursable.

Bottom line

You may track and be reimbursed from estate funds for reasonable, necessary costs incurred to preserve, maintain, insure, and prepare estate property for sale. Maintain detailed records, act reasonably and in the estate’s best interest, and ask the probate court for prior approval for large or unusual expenditures. When in doubt, consult an attorney or petition the court for guidance to avoid personal liability.

Disclaimer

This article explains general information about Minnesota probate practice and is not legal advice. It does not create an attorney-client relationship. For advice tailored to your situation, consult a licensed Minnesota attorney or contact the probate court.

Helpful Hints

• Always keep originals of receipts and a chronological ledger of payments related to the estate.
• Label every transaction clearly as an estate expense and note why it was necessary.
• For any expense over a few hundred dollars, get written estimates and at least two bids when feasible.
• If you personally pay an estate expense, write a short affidavit or memo explaining why you paid and attach the receipt to the estate records.
• Talk with beneficiaries early about predictable expenses (insurance, taxes, basic repairs) to reduce conflict.
• Consider short-term property management or caretaker services if you cannot supervise the property yourself.
• If a sale involves an interested buyer (family member or the personal representative), get court approval to avoid challenges.
• When selling, expect ordinary closing costs and realtor commissions; plan on paying those from sale proceeds.
• For complex issues—environmental hazards, major structural defects, or significant creditor claims—consult an attorney before spending estate funds.