FAQ: Reimbursable Expenses for Maintaining Estate Property in New York

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

Short Answer

As the estate’s personal representative (executor or administrator) in New York, you can generally seek reimbursement from the estate for reasonable, necessary expenses paid to preserve and maintain estate property before sale. Typical reimbursable items include property taxes, insurance, utilities, routine maintenance and repairs, mortgage payments, homeowners association (HOA) fees, security, appraisal and cleaning costs, and costs of marketing and selling the property. Reimbursement normally requires good documentation, a separate estate accounting, and — when expenses are large or disputed — court approval under the Surrogate’s Court Procedure Act and the Estates, Powers & Trusts Law. This is educational information, not legal advice.

Detailed Answer — What counts as a reimbursable expense in New York?

New York law gives the personal representative the duty to preserve estate assets for the benefit of beneficiaries and creditors. To do that, you may need to pay expenses out of your own funds or the estate’s funds. The estate will generally reimburse reasonable and necessary costs of preservation, provided you document them and include them on the estate accounting. Key categories commonly allowed are:

• Property taxes and statutory assessments — taxes and municipal charges assessed on the property while the estate owns it.
• Property insurance — hazard, fire, liability, or flood insurance required to protect the property’s value.
• Utilities and basic services — electricity, gas, water, sewer, and necessary ongoing utilities to prevent damage (e.g., heat to prevent frozen pipes).
• Routine maintenance and emergency repairs — repairs to stop leaks, fix broken systems, replace a roof after storm damage, winterize plumbing, pest control, and other upkeep needed to preserve value.
• Security and property management — boarding, locks, alarm systems, security patrols, or professional property-management fees if necessary to protect the property.
• Mortgage, escrow, HOA, and condominium fees — required payments to avoid foreclosure or liens and to keep the property in good standing with the association.
• Cleaning, staging, and minor improvements for sale — costs to make the property marketable, such as cleaning, decluttering, minor painting, and landscaping.
• Appraisal, inspection, and advertising costs — professional appraisal, property inspections, photography, advertising, and broker fees related to marketing and selling the property.
• Moving, storage, and removal of personal property — costs to remove, store, or dispose of decedent’s belongings so the property can be sold.
• Legal and accounting fees related to estate administration — fees paid to attorneys or accountants for necessary services concerning the property (these may also be subject to court review).

Expenses that are clearly personal to the representative, unnecessary, or extravagant are unlikely to be allowed. Substantial improvements that increase the estate’s capital value (as opposed to necessary repairs) may be treated differently in accounting and could affect the distribution calculation.

How do you get reimbursed? Practical steps

1. Document everything: keep original receipts, invoices, canceled checks or bank statements, contracts, and itemized bills. Note the date, purpose, and who authorized the work.
2. Open a separate estate bank account: deposit estate funds and pay estate-related bills from it. If you must use personal funds, pay yourself back from the estate and document the advance.
3. Obtain written beneficiary consent for non‑routine or large expenses: if beneficiaries agree in writing to repairs or improvements, that reduces the risk of later objection.
4. Seek prior court approval for extraordinary expenses: for major repairs or capital improvements, consider asking the Surrogate’s Court for authorization to ensure later reimbursement.
5. Include items in interim and final accountings: list expenditures on the estate accounting submitted to the Surrogate’s Court. The court will allow or disallow claims after review or on objection by beneficiaries.
6. Keep records of time and mileage: if you perform work personally, track hours and miles. New York courts may allow reasonable charges for out‑of‑pocket expenses; claiming personal labor as compensation typically requires careful support and may be treated as compensation rather than expense reimbursement.

When should you get court approval or beneficiary consent?

If an expense is ordinary and necessary (paying taxes, insurance, basic repairs), you can usually pay and later seek reimbursement through the estate accounting. But when costs are large, irreversible, or could change the nature of the property (major renovations, long‑term leases, or expensive improvements), ask beneficiaries to consent in writing or petition the Surrogate’s Court for prior approval. Court approval greatly reduces the risk of later objections and possible personal liability.

Where the law says so

New York’s Surrogate’s Court Procedure Act and the Estates, Powers & Trusts Law set out the duties, powers, and accounting requirements for fiduciaries who administer estates. For the statutory texts and specifics about accounting procedures and fiduciary responsibilities, see the consolidated New York statutes:

• Surrogate’s Court Procedure Act (SCPA)
• Estates, Powers & Trusts Law (EPTL)

For practical Surrogate’s Court forms and procedural guidance in New York, see the Unified Court System’s Surrogates pages: New York Courts — Surrogate’s Court.

Common pitfalls to avoid

• Mixing personal and estate funds without clear documentation.
• Failing to get receipts or written contracts for major repairs.
• Making large improvements without beneficiary consent or court approval.
• Delaying necessary actions that increase risk of damage or loss (e.g., not repairing a leak promptly).
• Assuming all convenience expenses (like frequent travel or hospitality) are reimbursable without justification.

Helpful Hints

• Start a dedicated estate ledger (digital spreadsheet works) and enter every expense with date, vendor, purpose, and payment method.
• Scan or photograph all receipts and back them up in cloud storage so nothing is lost.
• If you expect significant repairs, get 2–3 contractor estimates and keep them with the file.
• Ask beneficiaries to sign a short written consent for non‑routine expenses — that often prevents disputes.
• Keep the Surrogate’s Court informed in contested situations — a short petition for authorization can save time and liability later.
• Consult an estate attorney before approving high‑cost work or when beneficiaries object. Small preventive legal steps often avoid larger disputes.

Next steps

If you’re the personal representative and you’ve already paid or will pay to preserve estate property, begin organizing receipts and open a separate estate account. If major expenditures are likely or beneficiaries object, consider seeking counsel or filing for court approval early.

Disclaimer: This article explains general principles of New York estate administration and is for educational purposes only. It is not legal advice, does not create an attorney‑client relationship, and may not reflect recent changes in the law. For advice about a specific estate, consult a licensed New York attorney or contact the Surrogate’s Court in the county where the estate is being administered.