Detailed Answer
Short overview: When you are administering an estate in Kansas, the personal representative (executor or administrator) may pay reasonable and necessary expenses to preserve estate property before it is sold. These payments typically come out of estate funds and are reimbursed as estate expenses before beneficiaries receive distributions. Keep careful records, get receipts, and seek court approval for large or unusual expenses.
What kinds of expenses can be tracked and reimbursed?
- Utilities and services: electric, gas, water, trash, and basic utility reconnection fees to keep property safe and marketable.
- Insurance: hazard, liability, or flood insurance premiums to protect the property while it is in probate.
- Security and preservation: locksmith costs, boarding up broken windows, alarm monitoring, temporary fencing, and security patrols.
- Maintenance and ordinary repairs: lawn care, snow removal, minor repairs (roof patching, plumbing fixes, HVAC repairs) needed to prevent further damage.
- Pest control and environmental measures: extermination, mold remediation, or measures to prevent deterioration.
- Property management and rental oversight: professional property manager fees or agent fees for managing a rental until sale.
- Taxes and assessments: real estate taxes, special assessments, and required municipal fees incurred while the estate owns the property.
- Mortgage, HOA, and other liens: mortgage payments, homeowners association dues, or other liens that must be kept current to protect the estate’s interest (note: whether to continue payments depends on cost vs. benefit).
- Appraisals, inspections, and surveys: professional appraisals, home inspections, septic/lead/asbestos inspections, or surveys needed to prepare a sale.
- Realtor and marketing costs: listing fees, staging, photos, advertising, and closing costs associated with selling estate property.
- Moving, storage, and cleanout: costs to remove personal property, clean the home, haul junk, or store belongings pending sale or distribution.
- Permits and required compliance work: costs to obtain municipal permits, perform required repairs to meet code, or address title defects essential to sale.
Which expenses may be problematic or treated differently?
- Capital improvements: Large upgrades (new additions, significant remodeling) may increase sale value but can be disputed by beneficiaries. Court approval is often wise before proceeding.
- Unapproved large expenses: Significant expenditures without beneficiary consent or court authorization can be challenged.
- Personal benefit expenses: Anything that appears to benefit an individual (including the personal representative) rather than the estate can be denied reimbursement.
How do you document and claim reimbursement?
- Open an estate bank account: Deposit estate funds and pay estate expenses from that account whenever possible to keep clear records.
- Keep detailed records: Keep receipts, invoices, cancelled checks, bank statements, written estimates/bids, photos before/after, and contracts for services.
- Get written authorizations: If beneficiaries agree to particular actions (for example, a repair or sale method), document that consent in writing.
- Seek court approval for big items: For expensive repairs or questionable actions, ask the probate court for an order authorizing the expense. Court approval reduces the risk of later claims against you as personal representative.
- Include expenses in fiduciary accountings: Track expenses in the inventory and in periodic or final accountings filed with the court. Reimbursement is typically allowed from estate assets before distribution under Kansas probate rules (see Kansas probate statutes for administrator powers).
When should you get court permission?
Common reasons to ask the court for prior approval include:
- Large repairs or capital improvements.
- Sale of real estate when the will or Kansas law requires court confirmation.
- When beneficiaries disagree about expenditures or disposition of estate property.
- When available estate funds are limited and a choice between paying debts and preserving property is necessary.
Seek a simple order from the probate court authorizing the action so reimbursement is clear and defensible.
Practical checklist for personal representatives in Kansas
- Immediately secure the property and transfer utilities as needed.
- Open an estate checking account and use it for all estate transactions.
- Collect and keep receipts and detailed records of every expense.
- Get at least one written estimate for significant repairs; consider multiple bids.
- Communicate with heirs/beneficiaries and try to document their consent for non-routine expenses.
- File inventories, appraisals, and accountings with the probate court as required by Kansas probate procedures.
- Consider hiring professionals (attorney, real estate agent, appraiser, accountant) when questions about reimbursement or sale arise.