Reimbursable Estate Property Maintenance Expenses — California

Short answer: Under California probate practice, the personal representative (executor or administrator) may pay and be reimbursed from estate funds for reasonable, necessary expenses incurred to preserve, maintain, secure, and prepare estate real property for sale. Typical reimbursable items include utilities, insurance, ordinary repairs, landscape care, property management, mortgage and tax payments, HOA dues, and costs directly tied to marketing and selling the property (e.g., cleaning, staging, escrow fees, and real estate commissions). Keep careful records and receipts, and obtain court approval for unusual or large expenditures when required.

What kinds of maintenance and holding costs are normally reimbursable?

• Routine maintenance and repairs: cleaning, pest control, minor plumbing/electrical fixes, roof patching, HVAC servicing, and other immediate repairs required to prevent damage or keep the property marketable.
• Utilities and services: electricity, gas, water, trash pickup, winterizing, and other services needed while the property is on the market.
• Insurance: hazard, liability, or flood insurance premiums necessary to protect the estate property while it is being held or sold.
• Security and preservation: boarding windows, locks, alarm monitoring, security patrols, or fencing required to protect the property from vandalism or theft.
• Property taxes, assessments, and mortgage payments: property taxes, special assessments, homeowner association (HOA) dues, and mortgage payments necessary to avoid liens, penalties, or foreclosure.
• Property management and caretaker fees: fees for a licensed property manager or caretaker to collect rent (if any), show the property, or maintain grounds and systems.
• Sale-related costs: real estate broker commissions, escrow and closing fees, title insurance, appraisal and inspection fees, staging and deep cleaning—these typically come out of sale proceeds but are valid estate expenses.
• Legal, accounting, or professional fees: fees reasonably incurred for probate attorneys, tax preparers, or appraisers directly connected to preserving or selling the property.

What might not be reimbursable?

Expenses that are excessive, unnecessary, or that amount to personal benefits for the personal representative are generally not reimbursable. Long-term improvements that change the character of the property (e.g., adding an expensive addition) may be treated as capital improvements rather than necessary preservation expenses; those can affect the estate’s accounting and should be approved in advance by the court or beneficiaries.

Authority to pay expenses and when court approval is recommended

A personal representative has statutory powers and duties to preserve and manage estate assets. Many ordinary and necessary expenses may be paid from estate funds as part of the administration process. However, when proposed expenses are large, unusual, or disputed by beneficiaries, it is safer to seek court approval (a petition for an order authorizing payment) to avoid later personal liability or a surcharge claim.

California’s Probate Code provides the framework for administration, compensation, and payment of estate expenses (see the Probate Code index: https://leginfo.legislature.ca.gov/faces/codes.xhtml). The statute setting the standard statutory compensation for personal representatives is in the Probate Code (for more on executor/administrator fees see: Probate Code §10800).

Practical steps to ensure reimbursement

1. Open and use a dedicated estate bank account for all receipts and payments. Never mix personal and estate funds.
2. Keep itemized receipts, contracts, invoices, photos, and before/after documentation for every expense.
3. Record the business purpose for each expense (e.g., “emergency roof repair to stop leak and preserve structure”).
4. Obtain multiple bids for large repairs and keep estimates on file. Consider written approval from the beneficiaries if practical.
5. For large or controversial expenditures, file a petition with the probate court asking for an order authorizing the expense or sale-related action.
6. Track sale-related closing costs separately so they can be properly deducted from sale proceeds before distributions.
7. Consider hiring a property manager or real estate agent experienced in probate sales to document market-driven decisions and costs.

How expenses are paid back and priority

Administration expenses, including reasonable costs of preserving and selling estate property, are typically paid out of the estate before distributions to beneficiaries and after creditor claims are paid according to statutory priorities. If you’ve personally advanced funds for estate maintenance, document the advances and seek reimbursement from the estate’s funds; if reimbursement is disputed, the probate court can resolve the claim.

Example (hypothetical)

Suppose you are the executor for a decedent who owned a house. You pay $1,500 for immediate roof repairs to stop water intrusion, $600 for winterized utility connection and monthly bills for two months ($200/month), $450 for lawn and landscaping, $1,200 for a licensed property manager to market and show the house, and $12,000 in projected real estate commission and escrow fees on sale. You should deposit all estate-related receipts and invoices into the estate file, pay these costs from the estate account when possible, and list them in the estate accounting. If a beneficiary objects to the $1,200 property manager fee, you can either seek beneficiary agreement or petition the probate court to confirm the expense was reasonable and necessary.

Where to learn more and next steps

Use California Courts’ probate self-help resources for plain-language guidance: https://www.courts.ca.gov/selfhelp-probate.htm. For the full text of California’s Probate Code (administration, powers, and fees), see the state legislative site: https://leginfo.legislature.ca.gov/faces/codes_displayexpandedbranch.xhtml?tocCode=PROB.