Detailed Answer

Quick legal disclaimer: This is educational information only and not legal advice. For decisions about a specific estate, consult a licensed Arkansas probate attorney.

Under Arkansas law, the personal representative (executor or administrator) may use estate funds to preserve and prepare estate property for sale when doing so is necessary and reasonable to protect estate value. Arkansas probate law governing administration of estates appears in Title 28 of the Arkansas Code; for the official text, see the Arkansas General Assembly site: Arkansas Code (Title 28 — Probate, Decedents’ Estates, and Fiduciaries).

Typical reimbursable expenses

The following expenses are commonly charged to the estate and reimbursed to the personal representative or paid directly from estate funds because they preserve estate value or are required to administer the estate:

• Mortgage payments and other secured loan payments (to avoid foreclosure).
• Property taxes and special assessments (to prevent liens or penalties).
• Homeowner’s or hazard insurance premiums (to protect against loss while the property is part of the estate).
• Utilities (electric, water, gas) necessary to keep the property in saleable condition.
• Urgent and ordinary repairs to prevent waste or deterioration (roof leaks, broken windows, plumbing fixes, emergency HVAC repairs).
• Routine maintenance that preserves value (lawn care, snow removal, pest control, locks/security).
• Reasonable cleaning, junk removal, and staging costs needed to market the property.
• Appraisal fees and reasonable inspection costs used to determine value.
• Real estate broker commissions and marketing expenses to sell the property.
• Closing costs and ordinary costs of sale (title fees, recording fees, prorations).
• Probate court filing fees and published notice costs required during administration.
• Reasonable attorney fees and accounting fees for estate administration (often subject to court approval).
• Bond premiums (if the court requires a fiduciary bond) and other court-ordered costs.

Distinguishing repairs from capital improvements

Not every outlay will be reimbursable as an ordinary expense. The general rule is that reasonable, necessary costs to preserve the estate are recoverable. Major capital improvements (for example, an addition or complete kitchen remodel) typically change the character of the asset and may not be reimbursable without explicit court approval or beneficiary consent. If the expenditure increases value significantly, you should get written approval from beneficiaries or permission from the probate court before proceeding.

Priority and accounting

Expenses of administration generally are paid from estate assets before distribution to beneficiaries. The personal representative must keep accurate records and provide an accounting to the court and beneficiaries. That accounting supports claims for reimbursement and helps avoid disputes. If the estate lacks sufficient liquid assets, seek the court’s direction before spending estate funds.

When to get court approval

Obtain court approval (or documented beneficiary consent) before spending estate funds when:

• Expenses are unusually large or not clearly necessary (major renovations).
• There is disagreement among beneficiaries about selling the property or paying expenses.
• The estate is insolvent or close to insolvent.
• You are unsure whether an anticipated expense is an ordinary administrative cost.

Practical steps the personal representative should take

1. Obtain letters testamentary or letters of administration from the probate court so you have clear authority to act.
2. Open a dedicated estate bank account and avoid mixing personal funds and estate funds.
3. Create a written inventory of estate real property and any liens, mortgages, or taxes owed.
4. Get written estimates for repairs and keep all receipts and invoices.
5. Document the business reason for each expense (protect value, prevent loss, prepare for sale).
6. Notify beneficiaries of major decisions and request written consent when practical.
7. If in doubt, file a petition in probate court asking for instructions or approval for a proposed expense.

What to track and how to present reimbursement requests

Keep a clear paper trail. For each expense record:

• Date, vendor, and detailed description of the work or service.
• Invoices and paid receipts (proof of payment).
• Reason the expense was necessary for preservation or sale.
• Any estimates, photos before/after, and beneficiary communications or court orders authorizing the work.

When you prepare the estate accounting or a request for reimbursement, group expenses by category (repairs, utilities, insurance, sales costs) and attach receipts. If you expect disputes, ask the court to review and approve reimbursements before paying yourself.

Special situations and creditor claims

If the estate has creditors or pending claims, pay attention to statutory timelines for notice to creditors and allowance of claims. If your payment of an expense benefits a creditor (for example, paying property taxes to prevent a tax sale), document why it was necessary. Consult the probate court or counsel if you suspect the estate may be insolvent.

Where to find Arkansas law and help

Arkansas probate and estate statutes are codified in Title 28 of the Arkansas Code; see the Arkansas General Assembly site for the statutes and code text: https://www.arkleg.state.ar.us/. The Arkansas Judiciary site has probate-related resources and forms: https://www.arcourts.gov/.

Helpful Hints

• Start an estate bank account immediately after appointment to separate funds.
• Keep every receipt and take photos before and after repairs.
• Prioritize expenses that prevent immediate loss (foreclosure, tax sale, storm damage).
• Get multiple quotes for large repairs and keep written estimates in the file.
• Get beneficiary consent in writing for non-urgent or high-cost work.
• Ask the court for guidance when beneficiaries disagree or the expense is unusual.
• Document your decisions and the business reason for each expenditure to reduce future disputes.
• Consider short-term insurance and winterization measures if a house will sit vacant.
• Discuss possible tax consequences of property sale or large expenses with an accountant.

For advice tailored to your situation, contact a licensed probate attorney in Arkansas. This article explains common practices under Arkansas estate administration but is not legal advice.