Overview
Short answer: Under Utah probate practice, a personal representative (executor or administrator) may pay reasonable and necessary expenses to preserve and maintain estate property before sale, and those administration expenses are normally reimbursable from the estate if properly documented and accounted for. However, some costs need prior court approval or later accounting to beneficiaries. This article explains common reimbursable items, documentation best practices, and when to ask the court for permission.
Disclaimer
This is general information and not legal advice. I am not an attorney. For specific guidance about your situation in Utah, consult a licensed Utah probate attorney or the probate court handling the estate.
Utah legal framework (where to look)
Utah’s probate rules and statutes govern what a personal representative can spend from estate funds and later seek reimbursement for. See Utah Code Title 75 (Probate) for the statutory framework and the Utah Courts site for procedural guidance:
Detailed answer: Common reimbursable expenses when maintaining estate property before sale
Personal representatives commonly pay the following types of expenses to preserve, secure, and prepare estate property for sale. When these costs are reasonable, necessary, and devoted to administration of the estate, they are typically classed as administration expenses and reimbursable from estate assets:
1. Security and safety
- Locks, rekeying, boarding up broken windows, or security system activation to prevent trespass, theft, or vandalism.
- Gate or fence repairs that prevent further damage or liability.
2. Insurance and related charges
- Property insurance premiums required to protect estate property while it is held for sale.
- Flood or hazard coverage specifically obtained to protect the estate asset.
3. Utilities and basic upkeep
- Utility bills necessary to preserve the property (electric, water, heat in cold months to prevent freeze damage).
- Routine lawn care, snow removal, pest control to prevent deterioration or code violations.
4. Routine maintenance and minor repairs
- Minor repairs that prevent further decay (roof patch, plumbing shutoff and minor fix, dryer vent cleaning).
- Cleaning and debris removal to make the property marketable.
5. Real estate carrying costs
- Mortgage payments or other secured debt payments to avoid foreclosure (if estate funds are used to keep the property intact).
- Property taxes, HOA dues, and assessments that become liens on the estate property.
6. Appraisals, inspections, and marketing
- Professional appraisals or broker price opinions used to establish a listing price or for court filings.
- Pre-sale inspections or tests required by law or to discover material defects (septic, termite, roof).
- Realtor fees and reasonable marketing costs incurred after the estate formally lists the property.
7. Storage, moving, and preservation of personal property
- Storage unit fees for estate items, moving costs required to clear the property prior to sale.
- Costs to inventory, photograph, or catalog estate personal property for sale or distribution.
8. Extraordinary or major repairs (with caution)
- Major renovations or repairs that materially change the asset’s value (e.g., full kitchen remodel) usually require careful review: get beneficiaries’ consent or court approval first. Otherwise the expense may be challenged as unnecessary or self-serving.
When you should get court approval or beneficiary consent
Court approval is advisable — and sometimes required — for:
- Large expenses or capital improvements that alter the estate asset’s character or value.
- Transactions with the personal representative or their relatives (self-dealing or conflicts of interest).
- Borrowing money on estate assets or paying large sums from estate funds before notice to beneficiaries.
If beneficiaries consent in writing to a specific repair or sale plan, that consent reduces the chance of a later court dispute. If you expect pushback, ask the probate court for authority before spending significant estate funds.
Documentation and accounting: what to track
To protect reimbursement rights and avoid disputes, track every administration expense carefully:
- Keep original receipts, invoices, contracts, and paid bills.
- Note dates, payees, purpose, and the property address associated with each expense.
- Keep bank statements and cancelled checks that show payment from estate accounts (use a separate estate checking account when possible).
- Take photos of property condition before and after work, and get written estimates for major items.
- Include all items in the estate inventory and in the periodic accounting to beneficiaries or the court.
Who pays first and how reimbursement works
Order of payment often follows these steps:
- The personal representative pays necessary costs from estate funds when available.
- If the representative uses personal funds to pay estate expenses, they should document those payments and seek reimbursement. Courts generally allow repayment for reasonable expenses if proven and not improper.
- At the end of administration, the representative provides an accounting listing expenses and requests reimbursement from estate assets. Beneficiaries may review, object, or the court may approve payment.
Examples (hypothetical fact patterns)
Example 1 — Small maintenance and sale: A decedent’s vacant home sits on the market for three months. The representative pays utilities, lawn care, a locksmith, and a cleaning service to keep the property sellable. These ordinary expenses are reasonable and normally reimbursable as administration costs.
Example 2 — Major renovation without approval: The representative pays for a full kitchen remodel to increase sale price without beneficiary consent or court approval. Beneficiaries later object, claiming the work was excessive. A court may disallow some or all of that cost unless the representative proves the improvement was reasonable and in the estate’s best interest.
Example 3 — Preventing foreclosure: The estate mortgage payment falls due. The representative uses estate funds to make the payment to prevent foreclosure. This is typically a reimbursable administration expense, but keep full documentation showing the necessity.
Practical steps to protect reimbursement rights
- Open a separate estate bank account and pay estate expenses from that account.
- Get written bids for large work and get beneficiary consent or court permission when in doubt.
- Document everything: receipts, photos, estimates, and beneficiary communications.
- File timely inventories and accountings the court requires so expenses become part of the official record.
- Ask the court for authority before making unusual or costly expenditures.
Where to get more information and help
- Read Utah Code Title 75 (Probate) for statutes that govern a personal representative’s duties and estate administration: https://le.utah.gov/xcode/Title75/75.html.
- Consult the Utah Courts probate guidance for forms and procedural requirements: https://www.utcourts.gov/howto/probate/.
- Consider contacting a licensed Utah probate attorney if the estate is large, contested, or if you anticipate unusual expenditures or conflicts with beneficiaries.
Helpful Hints
- Start an estate bank account immediately to separate estate and personal funds.
- Always get written receipts and before/after photos for physical work on the property.
- Obtain at least two bids for major repairs and keep them with the estate file.
- Notify beneficiaries in writing of planned large expenses and seek their written consent where practical.
- If in doubt about a large or unusual cost, ask the probate court for prior authorization — it reduces later disputes.
- Keep copies of insurance policies and proof of premium payments in the estate file.
Remember: Reasonable, necessary, and well-documented expenses paid for the proper administration of an estate are generally reimbursable in Utah. When a cost is large, unusual, or involves potential conflicts of interest, obtain beneficiary consent or ask the court for authority first.