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Who can pay for estate expenses and get reimbursed?

Only the estate’s personal representative (sometimes called an executor or administrator) or a person acting under court authority should pay for estate expenses expecting reimbursement from estate funds. Before spending significant sums, the personal representative should be appointed by the Vermont probate court and should keep records showing the expense was for the estate’s benefit. Vermont probate law (Title 14) governs how estates are administered: Title 14, Vermont Statutes.

Types of expenses commonly reimbursable before an estate property is sold

The following categories are typically treated as proper estate administration costs if they are reasonable, necessary, and documented. These are paid from estate assets before distributions to beneficiaries:

• Insurance — homeowner’s, hazard, flood, liability, or umbrella insurance required to protect the property while it is in the estate.
• Utilities and basic services — electricity, gas, water, sewer, trash removal, and other services needed to preserve the property until sale.
• Property taxes and municipal assessments — taxes or special assessments that become due while the estate owns the property. Paying these protects the estate from liens or penalties.
• Mortgage, loan, and HOA payments — required payments to avoid default or foreclosure, if the estate has ongoing debt secured by the property.
• Reasonable repairs and maintenance — necessary fixes to preserve value (e.g., roof patching to stop leaks, emergency plumbing or electrical repairs, winterization). Cosmetic or discretionary upgrades are usually not reimbursable unless they are necessary to make the home marketable and their cost is reasonable.
• Securing and winterizing — boarding windows and doors, changing locks, winterizing pipes, lawn care, and other actions to prevent damage, vandalism, or deterioration.
• Vendor and property-management fees — reasonable fees for property managers, contractors, or vendors hired to secure, show, or maintain the property.
• Cleanup and hazard removal — expenses to remove biohazards, hoarding debris, or hazardous materials that prevent sale or create liability.
• Advertising, appraisal, and sale-preparation costs — appraisals, realtor fees or commissions, staging limited to what is customary and reasonable, and costs to bring the property to market.
• Closing-related expenses — title searches, payoff of liens, recording fees, and other costs required to close a sale.

Expenses that are often questioned or denied

• Improvement or luxury upgrades — high-end renovations done to increase price can be disallowed if they are not reasonable or if beneficiaries object.
• Personal expenses of heirs — costs that benefit an heir or third party rather than the estate are not reimbursable.
• Unauthorized large expenditures — big repairs or structural changes should be approved in writing by the court or by beneficiaries in writing when the personal representative lacks clear authority in the will.

How to document and preserve the right to reimbursement

Good recordkeeping and following probate procedure are essential to ensure reimbursement and to avoid disputes:

1. Get appointed and obtain Letters Testamentary or Letters of Administration from the probate court before paying large sums.
2. Open a separate estate bank account. Pay all estate expenses from that account to create a clear traceable record.
3. Keep original receipts, invoices, contracts, cancelled checks, and credit-card statements. Include vendor contact information.
4. Take dated photos of damage, repairs, or improvements and keep notes describing why each expense was necessary for the estate.
5. Get written estimates for non-emergency work and, when reasonable, get multiple bids to show that costs were market-rate.
6. If time permits or the expense is large, seek beneficiary consent in writing or court approval before proceeding.
7. Prepare and file a clear inventory and accounting with the probate court as required; list the expenses and the purpose for reimbursement.

Court approvals, objections, and disputes

If beneficiaries or creditors dispute an expense, the probate court will decide whether the expense was a proper administration cost. Large or unusual expenditures are safest when approved in advance by the court. See Vermont probate rules in Title 14 for how the court supervises administration: https://legislature.vermont.gov/statutes/title/14.

Practical example (hypothetical)

Imagine you are the appointed personal representative. The decedent left a house with a leaky roof and unpaid property taxes. You insure the home, pay the past-due property taxes to remove a tax lien, winterize the plumbing, hire one contractor to make necessary roof repairs to stop water intrusion, and list the property for sale. You keep receipts, photos of the leak, the contractor’s estimate, and payments from the estate account. These expenses are the types courts generally allow to be reimbursed from estate proceeds because they preserved value and prevented further loss.

Next steps

1) Confirm you have court authority to act (letters). 2) Open an estate bank account. 3) Track everything carefully. 4) Ask the probate court for approval for any large or non-routine expense or get written beneficiary consent. 5) If in doubt, consult a Vermont probate attorney to avoid personal liability.