Understanding Which Estate Property Expenses You Can Track and Get Reimbursed in South Carolina

Disclaimer: This is general information and not legal advice. I am not a lawyer. For advice tailored to your situation, consult a licensed South Carolina probate attorney.

Short answer

If you are the personal representative (executor or administrator) of an estate in South Carolina, you may pay and later seek reimbursement from estate assets for ordinary and necessary expenses that preserve, manage, and prepare estate property for sale or distribution. Typical reimbursable items include insurance, taxes, mortgage and lien payments (to avoid foreclosure), ordinary repairs and maintenance, utility bills, appraisal and inspection fees, reasonable storage and moving costs, marketing and closing costs of a sale, and professional fees (attorneys, accountants, real estate agents). You should keep detailed records, obtain court authority for extraordinary expenses, and follow court accounting procedures.

Detailed answer — what’s reimbursable and why

Who can be reimbursed?

Only the estate’s appointed personal representative can ordinarily charge the estate for expenses they incur in administering the estate. If someone who is not appointed spends money on estate property without the court’s prior authorization or beneficiary agreement, they risk not being reimbursed.

Categories of commonly reimbursable expenses

• Insurance: hazard, homeowner, and liability insurance required to protect the estate property while it is being administered or marketed.
• Mortgage, trust or secured debt payments: payments necessary to prevent foreclosure or preserve value. These are often treated as estate debts and paid out of estate assets.
• Real property taxes and special assessments: required tax payments to avoid liens or penalties.
• Utilities and services: electricity, water, gas, trash removal, and basic upkeep necessary to keep the property in saleable condition.
• Security and preservation: alarm monitoring, boarding up, pest control, winterization, lawn care, snow removal, and other measures that prevent deterioration or vandalism.
• Routine repairs and maintenance: repairs that keep the property marketable (e.g., fixing a leaky roof or broken window). Avoid making major improvements absent court approval or beneficiary consent.
• Appraisals, inspections, and surveys: fees for appraisals, termite or structural inspections, and title searches required to market and sell property.
• Marketing and sale costs: real estate agent commissions, advertising, escrow and closing costs, transfer taxes, and recording fees tied to selling the property.
• Moving, storage, and cleanout: costs to remove personal property, store estate items, or safely dispose of junk when necessary for sale or distribution.
• Professional fees: reasonable attorney and accountant fees for estate administration; fees for property managers or contractors hired to perform necessary work.
• Probate and court costs: filing fees and other court-ordered expenses of administration.

Expenses that may need court approval or beneficiary consent

Extraordinary or discretionary expenses often require either beneficiary consent or prior court authorization. Examples include:

• Major renovations or capital improvements intended to increase resale value.
• Unusually large expenditures for security or specialized services.
• Sale of property that is bequeathed specifically to a beneficiary (the beneficiary may have priority or the right to buy the property before sale).

Priority: what gets paid first?

Administration expenses and debts of the estate generally have priority over distributions to beneficiaries. That means reasonable administration costs are paid from the estate before beneficiaries receive their shares. Keep in mind creditors’ claims and certain secured debts (like mortgages) must be handled according to law and the probate process.

How to preserve the right to reimbursement

1. Obtain appointment documents (Letters Testamentary or Letters of Administration) from the probate court before acting where possible. The court-appointed representative has clear authority to act on behalf of the estate.
2. Document everything. Keep original receipts, invoices, contracts, bank statements, and proof of payments. Maintain a clear ledger describing the expense, purpose, date, and payee.
3. Notify beneficiaries. Early notice of planned expenditures (especially large ones) reduces disputes and may secure beneficiary consent.
4. Seek court approval for extraordinary expenses. A short petition to the probate court asking for authorization provides protection if beneficiaries later object.
5. Avoid nonessential improvements. Do not make major upgrades intended to increase market value without prior authority; such costs can be denied reimbursement if the court finds them unnecessary or self-serving.
6. Deduct liens and debts properly. If you paid a mortgage or another secured debt to protect the property, document how that payment preserved estate value.
7. Account formally. File inventory and periodic accountings the court requires; include these expenses and request allowance/reimbursement in your accounting.

Special situations to watch for

• If the will specifically gives the property to a beneficiary (a specific devise), that beneficiary may be responsible for upkeep once they are entitled, or they may have the right to possession; coordinate with counsel.
• If multiple beneficiaries disagree about selling or maintaining property, seek court instructions to avoid personal liability for acting without consent.
• If the estate is insolvent (debts exceed assets), reimbursement for some administrative expenses may be limited or prioritized by statute and court order.

South Carolina statutory authority and where to look

South Carolina’s probate and fiduciary rules are in the South Carolina Code, Title 62 (Probate, Trusts, and Fiduciaries). That title sets out the powers, duties, and accounting rules for personal representatives and the order in which estate claims and administration expenses are handled. See South Carolina Code, Title 62: https://www.scstatehouse.gov/code/title62.php

Because every matter is fact-specific, many personal-representative questions (especially about large or unusual expenses) are resolved by asking the probate court for guidance or approval under the court’s general supervisory authority over estate administration.

Practical checklist for tracking reimbursable estate property expenses

1. Get court appointment letters before making major payments.
2. Create an expense log and save all receipts and contracts.
3. Label each expense with estate file number, property address, and purpose.
4. Obtain multiple bids for repairs when practical and keep the lowest reasonable bid.
5. Get beneficiary consent in writing for non-routine or large expenses when you can.
6. Ask the court to approve extraordinary expenses in advance when uncertainty exists.
7. Include all expenses in your formal accounting to the probate court.

When to consult a South Carolina probate attorney

Talk to an attorney if you are unsure whether an expense is “necessary,” if beneficiaries disagree with your actions, if the estate has limited funds, or before making large repairs or improvements. An attorney can help you petition the probate court for instructions and reduce your personal risk of being denied reimbursement.

Helpful Hints

• Keep a dedicated bank account for estate expenses — it simplifies accounting and demonstrates separation from personal funds.
• Take dated before-and-after photos for repairs and cleanouts.
• Label all invoices and receipts with the estate case number and property address.
• When possible, avoid cash payments; use checks or traceable electronic payments to create records.
• If beneficiaries agree to assume responsibility for upkeep, get that agreement in writing and file it with the probate court if appropriate.
• File routine accounting on the schedule required by the probate court; include a request for allowance of administration expenses and reimbursement.

For statutory language and more details about the duties and powers of personal representatives in South Carolina, consult Title 62 of the South Carolina Code: https://www.scstatehouse.gov/code/title62.php

Final note: This overview is educational and does not replace legal counsel. If you are a personal representative or an interested party in a South Carolina probate case, consider contacting a licensed probate attorney to review specific facts and help obtain any necessary court authorization before spending estate funds.