FAQ — Requiring a Co‑Heir to Reimburse an Appraisal Before an Estate Buyout (Michigan)

Short answer: Sometimes — but only if there is an agreement (written or implied), if the appraisal is a proper estate administration expense paid from estate funds, or if a court orders reimbursement. If the appraisal was paid solely by you and there was no prior agreement, you generally cannot unilaterally force the other co‑heir to reimburse you before a buyout unless they agree or a probate/civil court orders it.

What an heir with no legal background needs to know

When multiple heirs inherit property, one heir may want to buy out the others. To set a fair buyout price, people often get a professional appraisal. Whether the other heir must pay part of that appraisal bill before the buyout turns on three things:

1. Who ordered and paid for the appraisal (estate vs. one heir)?
2. Was there a prior agreement (written or oral) requiring cost‑sharing?
3. Are you acting as the personal representative (executor) or dealing privately as co‑owners?

Detailed answer — how Michigan law and practice apply

1. Appraisal paid from estate funds or ordered during administration

If an appraisal was obtained as part of regular estate administration (for example, the personal representative ordered the appraisal to determine estate value, to list on an inventory, or to determine sale/buyout price), the cost is normally an estate expense. Estate expenses are paid from estate assets and reflected in the estate accounting. In that situation, the cost is not a personal debt of any one heir; it reduces the estate’s net value shared by heirs unless the probate court or an agreement requires a different allocation.

Michigan’s estates law governs probate administration and the duties and powers of personal representatives. See Michigan’s Estates and Protected Individuals Code (EPIC) for general rules on administration: MCL Chapter 700 (EPIC). If you are the personal representative, document the appraisal and treat the fee as an estate administration expense in the estate accounting.

2. Appraisal paid by one heir (not the estate) and no prior agreement

If you paid the appraisal yourself as an individual (not through estate funds) and there was no written agreement or prior understanding that the cost would be split, you generally cannot force the co‑heir to reimburse you before completing the buyout. You may:

• try to negotiate that the appraisal cost be credited to the buyout price;
• ask the co‑heir to sign a buyout agreement that deducts one‑half (or another agreed share) of the appraisal fee from their share of proceeds;
• or, if negotiation fails, seek a court order (probate or civil) for contribution, though courts weigh fairness and reasonableness and such actions take time and expense.

Absent agreement, pursuing reimbursement as a debt or contribution can become a separate legal claim that may not be worth the cost unless the amount is significant.

3. Appraisal paid by a co‑owner for a private buyout

When heirs privately negotiate a buyout (outside of probate), the negotiation and contract terms control. The safest approach is to get any cost‑sharing or reimbursement obligations in writing and include them in the buyout/purchase agreement. A typical clause credits the buyer or seller with the appraiser’s fee or splits the fee based on ownership percentages.

4. If you are the personal representative

The personal representative should document and approve reasonable expenses (including appraisals) necessary for administration. Keeping accurate records and including appraisal fees in estate accounting helps clarify who ultimately pays. If the estate pays, heirs share the net result when distributions are made, or a buyout can reflect the estate’s net value. See Michigan law on the role and duties of the personal representative: MCL Chapter 700 (EPIC).

5. If the co‑heir refuses to pay

If negotiations fail, options include:

• adjust the buyout price to reflect the appraisal cost (credit or debit);
• mediate or use a neutral arbitrator to resolve cost‑sharing; or
• petition the probate court (if the estate is open) for instructions or equitable relief, or file a civil claim for contribution if applicable.

Courts may consider whether the appraisal was reasonable, necessary, and useful for estate administration or the buyout.

Practical steps you can take right now

1. Get the appraisal invoice and the appraiser’s report (date, scope, value, cost, and credentials).
2. Confirm whether the appraisal was ordered and paid by the estate (through the personal representative) or by you personally.
3. If you want reimbursement, present a written proposal: e.g., split the appraisal 50/50 or credit one‑half against the buyout price.
4. If you’re the personal representative, record the fee in estate records and in the inventory/administration paperwork.
5. Use a written buyout agreement that clearly allocates appraisal fees and shows how the buyout price was calculated.
6. If the co‑heir refuses, consider mediation or ask the probate court for guidance if the estate is open.

Sample buyout clause (example language)

“The parties agree that the cost of the appraisal dated [date] shall be allocated as follows: [Heir A] will be credited $[amount] and [Heir B] will be credited $[amount] toward the buyout price. The buyout price shall be adjusted by subtracting the credited appraisal amount from the buyout payment.”

Helpful Hints

• Put agreements in writing. Oral promises are hard to enforce.
• Use a licensed, neutral appraiser familiar with local market conditions; keep the report and invoice.
• Document who paid what and whether estate funds were used.
• If you are the personal representative, follow the accounting and recordkeeping rules under Michigan probate practice and list expenses in the estate accounting.
• Consider splitting costs by ownership share if heirs own unequal interests.
• If negotiations stall, mediation is often faster and cheaper than court litigation.
• Ask a probate attorney to review buyout language before signing, especially for significant property values.

Where to learn more

Michigan’s Estates and Protected Individuals Code (EPIC) covers the rules for probate administration and personal representative duties: MCL Chapter 700. For court forms and local procedures, check the Michigan Courts website (courts.michigan.gov) or your county probate court page.