Answer

If you are administering an estate in Alabama, the estate itself normally pays reasonable and necessary costs to preserve and maintain estate property before sale. These payments cover routine upkeep, protection, and expenses required to avoid waste or loss of value. The personal representative (executor or administrator) should track every expense, get receipts, and follow probate court rules if approval is needed.

Who pays for these expenses?

Expenses to preserve estate property are generally paid from estate funds. A court-appointed personal representative has authority to handle estate property and pay ordinary administration costs out of the estate. For unusual or large expenses you should seek court approval or written consent from interested parties to avoid personal liability.

Common expenses that can be reimbursed from estate funds

• Property insurance: Premiums to maintain hazard, liability, or flood insurance while the estate owns the property.
• Property taxes and municipal assessments: Taxes, special assessments, and prorated taxes that protect the estate from liens or penalties.
• Mortgage, deed of trust, and loan payments: Payments to prevent foreclosure, if the estate has the funds and payment is reasonable to preserve value.
• Utilities and basic services: Electricity, water, trash, and sewer to keep the property in a marketable condition.
• Security and locks: Alarm services, boarding, changing locks, or hiring security to protect vacant property.
• Routine maintenance: Lawn care, snow removal, pest control, minor repairs to prevent further damage (e.g., roof patching to stop leaks).
• Necessary repairs prior to sale: Repairs that are reasonable and necessary to make the property marketable. Major improvements intended to increase value significantly (e.g., an extensive remodel) may require court approval.
• HOA fees and condo assessments: Regular association dues and assessments that would become liens or jeopardize sale.
• Costs of sale: Real estate broker commissions, advertising, title work, closing costs, and reasonable closing-related expenses (usually paid from sales proceeds).
• Professional fees: Reasonable attorney, appraiser, accountant, or contractor fees incurred in the ordinary administration of the estate.

When do you need probate court approval?

In Alabama, ordinary and reasonable expenses for preserving estate property are typically paid by the personal representative from estate funds without prior court approval. However, seek court approval or written consent from heirs/creditors when:

• Expenses are large or atypical (major renovations, long-term loans, or expenditures that significantly alter the property).
• There is a dispute among heirs or potential beneficiaries about the necessity of the expense.
• The personal representative lacks funds in the estate but proposes to use personal funds and later seek reimbursement.
• Statutory or local probate rules require prior approval for certain transactions.

Getting prior approval reduces the risk that a court will later disallow reimbursement and hold the representative personally liable.

How to document and track reimbursable expenses

1. Open a separate estate bank account for receipts and payments. Keep estate funds separate from personal funds.
2. Keep originals or scanned copies of invoices, receipts, contracts, cancelled checks, and credit-card statements.
3. Take dated photos before and after work to show necessity and extent of repairs or maintenance.
4. Maintain a contemporaneous ledger or spreadsheet with date, vendor, purpose, and amount for each expense.
5. Get written estimates for larger jobs and, if possible, multiple bids to show reasonableness.
6. Document communications with beneficiaries and creditors about major expenses and any consents obtained.
7. Include these items in the estate inventory and in the court accountings that the personal representative must file.

Priority and limits

Estate administration expenses are generally paid ahead of many distributions because they preserve estate assets for creditors and beneficiaries. Payment must be reasonable and necessary. Unreasonable or wasteful expenses can be disallowed by the probate court. If an expense benefits one beneficiary disproportionately (for example, fixes made only to one property sold to a single heir), the court may require an adjustment among beneficiaries.

Practical steps before spending

• Confirm your appointment and authority as personal representative with the probate court.
• Review the estate inventory and budget for expected maintenance costs.
• Obtain at least one written estimate for any non-routine work.
• When in doubt about major or contentious expenditures, file a petition with the probate court asking for approval or instructions.

Statutes and where to read more

Alabama’s probate and administration statutes cover the duties, powers, and accounting requirements for personal representatives. For general reference to the Alabama Code (Title 43 — Probate), see the Code of Alabama: Code of Alabama, Title 43 (Probate). For specific procedural rules or local practices, check with the probate court in the county where the estate is being administered.

Key takeaways

• Most ordinary, reasonable expenses to preserve estate property may be paid from estate funds in Alabama.
• Keep thorough records, use an estate bank account, and get receipts for every payment.
• Seek probate-court approval for large, unusual, or disputed expenditures to avoid personal liability.
• If you are unsure, consult a probate attorney or the county probate court because local practice and judge preferences vary.

Helpful hints

• Start an estate bank account immediately; commingling funds risks personal liability.
• Collect and keep all invoices, photos, and written bids in a single folder or digital file.
• For major repairs, get at least two bids and a written scope of work before authorizing work.
• Ask the probate clerk how the court prefers accountings and what deadlines apply for reporting expenses.
• Consider short-term insurance and a lock change as low-cost immediate protections for vacant property.
• Pay mortgage or HOA dues to avoid liens that can complicate or reduce the sale value.
• If you advance personal funds, document them clearly and consider asking the court for approval to ensure reimbursement.

Disclaimer: This article explains general principles under Alabama probate practice to help you understand common issues. It is not legal advice and does not create an attorney-client relationship. For advice on a specific estate, contact a licensed Alabama probate attorney or the local probate court.