How to handle appraisal costs when an heir is buying out an estate interest
Short answer: Whether you can require a co-heir to reimburse you for an appraisal before completing a buyout depends on who ordered and paid for the appraisal, whether the appraisal was a proper estate administration expense, and whether the parties (or a probate court) agree to an allocation. If the appraisal was ordered by the estate’s fiduciary (executor or administrator) it is typically treated as an estate expense and may be paid from estate funds; if you privately hired and paid for the appraisal, reimbursement depends on agreement or a court order.
Detailed Answer
This answer assumes an Ohio probate context where one heir is buying out another heir’s share of an estate asset (for example, a house or other property). The key issues are: who arranged and paid for the appraisal, whether the appraisal was for estate administration, and whether there is an agreement or court order allocating costs.
1. If the executor/administrator ordered the appraisal
When the estate’s fiduciary (executor or administrator) hires an appraiser as part of administering the estate, that cost is normally treated as an administration expense of the estate. Administration expenses are paid before beneficiaries receive distributions. In that situation you generally cannot force another co-heir to pay you personally; instead the estate pays the bill and the expense reduces estate assets or is paid from estate funds in the administration process. For background on probate administration in Ohio, see the Ohio Revised Code, Chapter 2107: https://codes.ohio.gov/ohio-revised-code/chapter/2107.
2. If you (one co-heir) paid for a private appraisal
If you obtained and paid for the appraisal on your own (not at the executor’s direction and not billed to the estate), you do not automatically have a legal right to reimbursement from the other co-heir. Reimbursement in that situation depends on:
- Any written agreement between the heirs about splitting appraisal or buyout costs.
- Whether the buyer (co-heir) agrees to accept an offset (reduce the buyout price by the appraisal fee).
- Whether a probate or civil court orders reimbursement — for example, as part of a partition action or a claim for equitable relief.
3. If parties disagree, the probate court or a partition action can decide
If you and the co-heir cannot reach an agreement, you may ask the probate court to resolve the dispute or file a partition action (for real property). Ohio law provides procedures for partition and allows the court to allocate costs and attorney fees among parties if it finds that allocation fair and equitable. See Ohio’s partition statutes: https://codes.ohio.gov/ohio-revised-code/chapter/5307.
4. Practical options to get reimbursed or avoid dispute
Common, practical routes are:
- Ask the co-heir to sign a written agreement that reimburses you or that allows you to offset appraisal costs against the buyout price.
- Request that the executor treat the appraisal as an estate expense and have the estate pay it.
- If the co-heir refuses, file a motion in probate court asking the judge to order allocation of appraisal and other administration costs.
- Consider mediation or negotiation — parties often avoid expensive litigation by working out a small offset or splitting the cost.
5. Who bears the risk if you reduce the buyout amount without a signed agreement?
Do not unilaterally deduct appraisal fees from the buyout price unless you have a signed agreement or court order allowing that deduction. Doing so can create liability or cause the transaction to be disputed later. Always get written consent or a probate-court ruling before making unilateral offsets.
6. Timing and role of the fiduciary
Executors and administrators owe duties of impartiality and proper estate administration. If an heir independently commissions an appraisal that helps administration, invite the fiduciary to adopt that appraisal for the estate record. If the fiduciary refuses, the appraisal remains a private expense unless a court orders otherwise.
7. Summary checklist
- Identify who ordered and who paid for the appraisal.
- Check any written estate or buyout agreements for cost-allocation clauses.
- If the executor ordered it, ask that the estate pay the fee before distributions.
- If you paid privately, ask the co-heir to reimburse or sign an offset agreement in writing.
- If parties cannot agree, seek a probate court ruling or partition action asking the court to allocate costs.
- Never deduct fees from a buyout price without written agreement or court order.
Helpful statutory references (Ohio): general probate and partition statutes you may want to review or discuss with counsel:
- Probate administration (Ohio Revised Code, Chapter 2107): https://codes.ohio.gov/ohio-revised-code/chapter/2107
- Partition of real property (Ohio Revised Code, Chapter 5307): https://codes.ohio.gov/ohio-revised-code/chapter/5307
Bottom line: If the appraisal was obtained by the estate’s fiduciary, it is typically an estate expense paid in the administration process. If you paid privately, you may require reimbursement only if the co-heir agrees or a court orders repayment. Avoid unilateral deductions from the buyout amount—get a written agreement or court order.
Helpful Hints
- Keep all appraisal invoices, emails, and written agreements. Documentation strengthens your position.
- Get any cost-sharing or offset agreement in writing and signed by all involved heirs and the executor if possible.
- Talk to the executor first. If the estate should pay the appraisal, the executor can often have the bill paid from estate funds before distribution.
- Consider offering a small compromise (split the fee or accept a partial offset) to avoid litigation costs that often exceed appraisal fees.
- If negotiations break down, consult a probate attorney early — a short attorney consultation can clarify whether to file a motion in probate court or a partition action.
- Do not rely on verbal promises—insist on documented, signed agreements to prevent later disputes.