Alabama: Can I Be Reimbursed for Mortgage Payments Made to Preserve Estate Property?

Short answer: Possibly. Under Alabama law, mortgage payments you make to preserve estate property can be reimbursable, but reimbursement usually depends on who you are (personal representative vs. heir/beneficiary vs. third party), whether the payments were authorized or necessary, and whether the probate court approves the charge against the estate.

How reimbursement generally works in Alabama

Alabama’s probate system treats expenses that are necessary to preserve estate property as proper charges against the estate. A personal representative (executor or administrator) has statutory duties and powers to manage estate assets, pay debts, and protect property. When a personal representative pays a mortgage or other necessary expense from estate funds, those payments are typically treated as estate administration expenses that reduce estate assets before distributions to heirs and beneficiaries. For a non‑representative (an heir, beneficiary, or creditor) who pays mortgage payments to protect estate property, the person may be able to assert a claim for reimbursement or be subrogated to certain rights, but recovery usually requires documentation and may require court approval.

Who pays first: the lender or the estate?

A mortgage lender holds a secured claim against the property. That security interest does not disappear simply because someone (an heir or personal representative) makes payments. When estate funds are available, the personal representative should address mortgage obligations to prevent foreclosure. But secured lenders generally keep their priority: paying the mortgage protects the property and the estate’s equity but does not eliminate the lender’s lien unless the mortgage is paid in full.

Scenarios and likely outcomes

• If you are the personal representative: You may use estate funds to make mortgage payments if doing so is necessary to preserve estate value. Such expenditures normally become administration expenses and reduce the distributable estate. The probate court may require you to account for those payments and may need to approve them in some situations.
• If you are an heir or beneficiary who paid mortgage payments: You can usually seek reimbursement by filing a claim in probate court against the estate. To maximize your chance of recovery, show (a) you made the payments to preserve the property, (b) the payments were reasonable and documented, and (c) the probate court approves treating them as estate expenses or recognizes your equitable claim (for example, unjust enrichment or subrogation). Recovery is not guaranteed and may be limited by estate assets and higher‑priority claims.
• If you are a third party or creditor: You may be treated like other creditors. If you contract with the estate or get court approval beforehand, you have stronger reimbursement rights than if you acted unilaterally.

Practical steps under Alabama law

1. Document every payment: dates, amounts, payee (lender), mortgage account number, and proof that the payments preserved the property (e.g., stopped foreclosure, maintained insurance, preserved value).
2. If possible, get court approval before paying. A probate court order authorizing mortgage payments by the estate or authorizing reimbursement to a person who pays is strong protection.
3. If you already paid, file an itemized claim with the probate court and with the personal representative. Ask the court to approve the claim as an estate administration expense or enter judgment for reimbursement.
4. Be prepared for priority rules: secured lenders and approved creditors often get paid before beneficiaries receive distributions.

Where to find the relevant law

The Code of Alabama contains the statutes governing decedents’ estates and the duties and powers of personal representatives (see Title 43, Decedents’ Estates). For general statutory reference, see the Code of Alabama on the Alabama Legislature’s website: https://www.legislature.state.al.us/. The probate court’s local rules and the probate judge’s practices also affect how claims are handled.

Example hypotheticals

Hypothetical A — You are the appointed personal representative and the estate has enough cash: You use estate funds to continue mortgage payments to avoid foreclosure. Those payments are administration expenses. When you account to the court, they will reduce the estate’s distributable balance.

Hypothetical B — You are an heir who pays mortgage payments to stop an imminent foreclosure and the personal representative does not act: You keep detailed proof of payments and file a claim in the probate case asking the court to order reimbursement or treat your payments as an advancement or lien against the property. The court may grant reimbursement if it finds the payments were necessary and equitable.

Limitations and risks

• Acting without court approval risks denial of reimbursement. Courts prefer claims to be approved in advance when feasible.
• If the estate lacks funds, you may not be fully reimbursed; secured creditors can be paid out of property proceeds before beneficiaries or unsecured claimants.
• Tax consequences and priority disputes may arise—consult an attorney or accountant for specifics.

Disclaimer: This article explains general principles only and is not legal advice. Laws change. For advice about a particular situation, consult a licensed Alabama probate or real estate attorney or contact the probate court where the estate is being administered.