How to track and get reimbursed for estate property expenses in Massachusetts

Quick summary: If you are a personal representative (executor or administrator) in Massachusetts, you may pay certain expenses to preserve and maintain estate property before it is sold. Typical reimbursable items include insurance, property taxes, necessary repairs, utilities, property management, and appraisal fees. Reimbursement generally comes from estate assets or sale proceeds but requires good records and, for large or unusual expenses, court approval. This is general information and not legal advice; always consult a probate attorney about your specific situation.

Detailed answer — what expenses are usually reimbursable and how to claim them

Massachusetts probate law gives a personal representative the authority and duty to preserve estate assets for the benefit of creditors and heirs. The law governing probate and the powers and duties of a personal representative is found in the Massachusetts Uniform Probate Code (Chapter 190B). For general statutory guidance see the Massachusetts General Laws, Chapter 190B: https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleII/Chapter190B. Also consult the Probate and Family Court for local procedures: https://www.mass.gov/orgs/probate-and-family-court.

Below is a practical list of expenses that are commonly viewed as proper estate expenses that a personal representative can pay and later seek reimbursement from estate funds or sale proceeds. Whether an expense will be reimbursed may depend on whether it is reasonable, necessary to preserve value, and properly documented. For large or non-routine expenses, you should ask the court for prior approval.

Commonly reimbursable expenses

• Property insurance premiums — maintaining hazard or homeowner insurance to protect the house from fire, wind, vandalism, and liability. Insurance is usually necessary and routinely reimbursed.
• Property taxes and municipal assessments — current taxes and any special assessments to avoid liens against the estate property.
• Mortgage payments and mortgage interest — if the estate property has a mortgage, continuing payments can prevent foreclosure. Note: pay what is required under the mortgage; avoid unauthorized modifications without court approval.
• Utilities and basic services — water, gas, electricity, heat, and sewage to prevent damage and maintain the property until sale or rental.
• Security and winterization — boarding windows, security alarms, winterizing plumbing, or other steps to prevent waste or vandalism.
• Ordinary repairs and maintenance — reasonable repairs that preserve value (fixing a leaking roof, repairing a broken furnace, pest remediation). Distinguish necessary repairs from significant improvements (see below).
• Property management fees and caretaking — fees paid to a professional property manager or caretaker to oversee showings, maintenance, and rent collection if the property is being leased pending sale.
• Cleaning, removal, and staging for sale — cleaning, removing personal property, or modest staging to enable sale. Large-scale cleanouts or demolition may require court approval.
• Appraisals, inspections, and surveys — professional appraisals to determine list price; inspections (roof, termite, structural) that inform necessary repairs or price setting.
• Real estate broker and advertising costs — listing fees and advertising paid in connection with selling the property; commissions are typically paid from sale proceeds as allowed by agreement and court rules.
• Attorney, accounting, and probate administration fees — legal and accounting costs incurred in administering the estate. These often require court allowance and are paid out of the estate as approved.

Expenses that may require court approval or be non-reimbursable

• Major improvements or renovations — converting a 1-family into a 2-family, large additions, or remodeling that increases value but are not necessary to prevent decay. These are more likely to be treated as capital expenditures and may require prior court permission because they change the character of estate assets.
• Personal payments by the personal representative — if you pay expenses out of your own pocket, you should get clear court approval or keep exact records; otherwise reimbursement may be denied if the charge is unreasonable or lacks documentation.
• Unauthorized or wasteful expenditures — lavish or unnecessary spending that does not protect value or benefit creditors/heirs likely will be disallowed.

Typical process to get reimbursed

1. Open a separate estate bank account and deposit all estate receipts there. Do not mix your personal funds with estate funds.
2. Keep detailed records: invoices, receipts, cancelled checks, bank statements, dates of service, and the reason each expense was necessary for the estate.
3. Pay routine, necessary expenses from the estate account. For large or unusual expenses (major repairs, expensive renovations, or long-term leases) petition the Probate Court for prior approval (a motion or petition) to avoid later disputes.
4. When it is time to account for administration, file the inventory and an accounting with the Probate Court showing the expenses and asking for allowance of compensation and reimbursement. Creditors are paid first; then reimbursements and distributions are made as approved by the court.

Example (hypothetical)

Hypothetical: The decedent left a single-family house with a leaking roof and an outstanding mortgage. As personal representative you immediately: (1) paid for emergency tarping and a temporary roof repair to stop water entry; (2) continued hazard insurance and mortgage payments; (3) paid municipal property taxes; and (4) hired an appraiser to set a listing price. These costs are routine, aimed at preserving the property, and are typically reimbursable from estate proceeds. If you then propose to replace the entire roof with a higher-end system that would substantially increase resale value, you should get the Probate Court’s approval before doing so.

Practical tips for documentation and minimizing disputes

• Keep receipts, photographs (before/after), contractor estimates, and written explanations of necessity.
• Obtain multiple bids for significant repairs and keep the lowest reasonable bid, or explain why a higher bid was necessary.
• Give heirs and beneficiaries notice of major proposed expenses; many disputes arise from lack of communication.
• For contentious or complex estates, obtain a court order (called a “citation” or allowance) approving the proposed action — this protects you from personal liability.
• Consult the local Probate and Family Court clerk or a probate attorney if you are unsure whether to proceed without prior approval.

Where reimbursement comes from and timing

Reimbursement is normally paid from estate assets, and for expenses tied to sale, from the sale proceeds before distribution to heirs. The personal representative’s accounting submitted to the Probate Court lists all expenditures and requests allowance. The court (after notice to interested parties) will allow reasonable and necessary expenses, and order payment from the estate. If you incur costs without authority and a beneficiary objects, the court may disallow the expense or hold you personally liable.

Additional resources

• Massachusetts General Laws, Chapter 190B (Probate Code): https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleII/Chapter190B
• Massachusetts Probate and Family Court information and forms: https://www.mass.gov/orgs/probate-and-family-court

Helpful Hints

• Open a separate estate bank account immediately and pay estate expenses only from that account.
• Document everything: receipts, dates, photos, invoices, and explanations of why each expense was necessary.
• Get written estimates and multiple bids for significant repairs or services.
• Notify heirs/beneficiaries of major proposed expenses and consider getting their written consent where possible.
• For large repairs, significant improvements, or if a beneficiary objects, obtain Probate Court approval before spending funds.
• Keep communications with contractors and vendors in writing and keep copies of contracts and warranties.
• Consult a probate attorney early if the estate is complex, contested, or if large outlays are needed.

Disclaimer: This article provides general information about Massachusetts probate practice and is not legal advice. Laws vary by circumstance and change over time. For advice tailored to your situation, consult a licensed Massachusetts probate attorney.