Detailed Answer
When someone serves as a personal representative (executor or administrator) of a Missouri estate, they must preserve estate assets until distribution or sale. Missouri probate rules require the fiduciary to collect, protect, and account for estate property. To do that, the personal representative may pay reasonable and necessary expenses from estate funds and later seek reimbursement. Keep careful records and get court approval for large or disputed expenditures.
Which expenses are typically reimbursable from estate funds?
- Mortgage, loan, and lien payments — Continuing mortgage or other secured loan payments paid to avoid foreclosure or loss of value are generally reimbursable. If the estate lacks funds, consider asking the court for guidance before using personal funds.
- Property taxes and assessments — Current property taxes, special assessments, and prorated taxes needed to keep the property in good standing are normally paid from estate assets.
- Insurance premiums — Homeowners, flood, hazard, and liability insurance premiums protecting estate property during administration are appropriate estate expenses.
- Utilities and ongoing operating costs — Reasonable utility charges (electric, gas, water), and essential services to keep the property habitable and marketable are reimbursable.
- Maintenance and ordinary repairs — Repairs necessary to preserve the property (fixing a leaking roof, repairing HVAC that prevents further damage, urgent plumbing repairs) are typically reimbursable as reasonable expenses of administration.
- Security, lawn care, and pest control — Boarding up windows, hiring security, routine lawn care, snow removal, and pest remediation to prevent loss or deterioration are usually allowed.
- Cleaning, junk removal, and minor staging — Reasonable cleaning, removal of hazardous waste, and modest staging or decluttering to make the property saleable can be paid from estate funds.
- Professional fees and services — Necessary fees for an attorney retained by the estate, a licensed real estate broker, appraiser, accountant, or contractor hired to preserve or market the property are reimbursable as estate administration expenses. Note: attorney fees may require court approval or later accounting to beneficiaries.
- Costs to list and sell the property — Costs such as appraisals, listing fees, reasonable advertising, real estate commissions (subject to court review if the probate court must approve the sale), closing costs, and escrow fees are normally paid from sale proceeds.
- Moving and storage — Costs to move personal property, rent storage for estate items, or secure specialized storage (for art, documents, etc.) while the estate is administered are typically reimbursable.
Which expenses may be disallowed or require court approval?
- Major improvements or upgrades that increase value (e.g., full kitchen remodels) can be contested by beneficiaries. These are often treated as capital expenditures and may require prior court approval.
- Expenses that primarily benefit a particular beneficiary (not the estate as a whole) may be disallowed unless the beneficiary agrees in writing or the court authorizes the expense.
- Personal expenditures by the fiduciary (not related to estate preservation) are not reimbursable.
- Unreasonable or poorly documented fees or services can be rejected in the fiduciary accounting and during court review.
Practical rules under Missouri probate practice
Missouri personal representatives must account for receipts and disbursements and are accountable to the probate court and beneficiaries. Keep the estate’s money separate, document every expense, and be prepared to request approval when incurring large or non-routine costs. For general statutory guidance, see the Missouri Revised Statutes and the Missouri Courts’ probate information: https://revisor.mo.gov and https://www.courts.mo.gov. The probate court can approve sales, commissions, and disputed expenses as part of the estate accounting and distribution process.
How reimbursement generally works
- Pay the expense from the estate bank account whenever possible.
- Keep original receipts, invoices, cancelled checks, and photographs documenting the condition that required work.
- List each expense clearly in your inventory and in periodic accountings to the court.
- Reimbursement normally comes from estate assets (including sale proceeds) before distribution to heirs. If expenses exceed liquid assets, the personal representative may petition the court for instructions or an order authorizing payment methods.
Helpful Hints
- Open a dedicated estate bank account immediately; do not mix personal and estate funds.
- Get multiple written bids for repairs or significant services and keep them with the file.
- Keep contemporaneous notes explaining why each expense was necessary to preserve value or prevent loss.
- For large repairs or improvements, obtain beneficiary consent in writing or seek a court order before spending estate funds.
- Use licensed and insured contractors. Verify licenses and get written contracts when work is significant.
- Consider whether a quick “sale as-is” may be better than costly repairs that could exceed increased sale value.
- Track mortgage and tax timelines closely to avoid penalties, foreclosure, or lien priorities that can reduce estate value.
- When in doubt about whether an expense is appropriate, ask the probate court or consult an attorney experienced in Missouri probate administration.
Disclaimer: This information explains common practice under Missouri probate law but is not legal advice. It does not replace consultation with a licensed Missouri attorney about the specific facts of your estate administration.