Detailed Answer

Yes — in Alaska, money that becomes part of a decedent’s estate (including proceeds from selling estate property) can generally be used to pay reasonable and necessary estate administration expenses such as junk removal, personal-property cleanup, securing property, repairs needed to sell real property, and other ordinary costs of administering the estate. Those proceeds are treated like any other estate asset and must be applied first to the estate’s valid expenses and creditor claims before being distributed to beneficiaries.

How this works in practice:

• Proceeds are estate assets: Money from a sale of estate property becomes part of the estate (unless the sale was of a non-probate asset or the seller acted outside authority). The personal representative (executor or administrator) holds and manages those funds for the benefit of the estate.
• Priority of payment: Alaska law requires that valid administrative expenses, funeral expenses, and creditor claims be paid out of estate assets before distributing property to beneficiaries. The personal representative must follow the statutory order of payment and keep accurate accounts. See Alaska’s probate statutes for governing rules on administration and payment of claims: https://www.akleg.gov/basis/statutes.asp#13.16
• Reasonableness and documentation: Expenses must be reasonable and necessary. Junk removal and personal-property cleanup typically qualify if they are needed to secure, preserve, or sell estate property. Keep invoices, receipts, contracts, before/after photos, and explanations of why the work was necessary.
• Court supervision and approval: If the estate is supervised by the probate court or beneficiaries object, the personal representative may need court approval for large or unusual expenses. When in doubt, obtain court authority or written beneficiary consent to reduce later disputes.
• Small estates and informal handling: For small-estate procedures (summary or affidavit-based transfers), the rules differ and using sale proceeds for cleanup may require extra care. If the estate qualifies for a small-estate procedure, follow the statutory process carefully or consult a probate attorney.
• Nonprobate assets and jointly owned property: Assets passing outside probate (joint tenancy with right of survivorship, payable-on-death accounts, life insurance or retirement benefits with beneficiaries) generally do not become estate assets, so sale proceeds from those items are not estate funds and cannot be used to pay estate administration costs.
• Personal representatives’ duties: The personal representative must avoid conflicts of interest, must account to beneficiaries and the court, and must not use estate funds for personal benefit. Proper accounting and transparent records protect both the representative and beneficiaries.

Statutory reference and where to read more: Alaska’s probate statutes govern estate administration, the powers and duties of personal representatives, and the order of payment of claims and expenses. See Alaska Statutes, Title 13 (Probate and Estates): https://www.akleg.gov/basis/statutes.asp#13.16

Common Scenarios and Practical Guidance

Scenario A — Estate-owned house sold to pay debts

If the estate sells a house and receives proceeds, the personal representative can use those proceeds to pay costs of sale (real-estate commissions, closing costs), expenses necessary to make the sale (cleanup, junk removal, minor repairs), outstanding creditor claims, and administration costs. Document each expense and hold back enough to pay known claims.

Scenario B — Family members remove items before probate

If family members remove or sell items before the estate is opened and there is no authority to do so, those actions can create disputes. Avoid removing or disposing of estate property before a personal representative is appointed and the estate’s scope is clear.

Scenario C — Small estate or informal transfer

Alaska permits simpler procedures for small estates. If you use sale proceeds under a small-estate process, follow the statutory requirements carefully and document approvals. If you are uncertain whether the estate qualifies, consult probate resources or an attorney.

Helpful Hints

• Open probate (or otherwise confirm the estate process) before spending sale proceeds on cleanup or removal.
• Keep written estimates and at least two bids for larger jobs (trash-out, remediation, hauling) to show reasonableness.
• Obtain written contracts that name the estate (not an individual) as the client when hiring vendors.
• Keep all receipts, photos, and a ledger of estate income and expenses. You will need these for accounting, tax filings, and possible court review.
• If beneficiaries consent in writing to payments, that reduces the risk of later disputes — but consent does not replace required court approvals in supervised estates.
• Avoid commingling estate funds with personal funds. Use a separate estate bank account for proceeds and payments.
• Check whether insurance, policy coverage, or other sources (e.g., homestead exemptions, tenant deposits) can cover cleanup costs before using estate cash.
• When in doubt about authority or potential disputes, seek court guidance or consult a probate attorney experienced in Alaska estates.