How to track and get reimbursed for expenses to maintain estate property before sale in Montana

Short answer: As personal representative (executor/administrator) in Montana you can generally be reimbursed from estate funds for reasonable and necessary expenses incurred to preserve and manage estate property before sale. Typical reimbursable items include mortgage or note payments, property taxes, insurance, utilities, routine repairs, maintenance, security, appraisal and listing fees, and certain professional fees. Large or unusual expenses may require court approval before payment. Keep careful records, get receipts, and use an estate bank account so reimbursements are paid from estate assets rather than personal funds.

Detailed answer

This FAQ explains what Montana law allows a personal representative to pay or be reimbursed for while preparing an estate property for sale. It uses commonly encountered facts (a decedent left a house that must be maintained and sold) to show typical steps and costs. This is educational information only — not legal advice.

What kinds of expenses are usually reimbursable?

• Essential carrying costs: mortgage payments, loan interest on encumbrances of estate property, property taxes, homeowner or hazard insurance premiums, and homeowner association dues required to keep the property in good standing.
• Utilities and basic services: electricity, water, gas, trash removal, and other utilities that are necessary to secure, maintain, or prepare the property for sale.
• Security and preservation: boarding up windows, changing locks, alarm service, winterization, pest control, and secure storage of personal property while the house is marketed.
• Routine maintenance and minor repairs: lawn care, snow removal, cleaning, painting, and small repairs needed to prevent damage and to make the property marketable.
• Necessary repairs to prevent decline: emergency or time-sensitive repairs (roof leak, burst pipe) to avoid major loss to the estate. More extensive renovations intended purely to increase value may require careful review.
• Sale-related costs: professional real estate agent commissions, listing fees, staging and marketing costs, appraisal fees, surveys, escrow and title costs, and standard closing costs paid to sell the property.
• Professional fees: reasonable attorney and accountant fees for estate administration tasks (not personal legal services unrelated to the estate) and fees for appraisers, contractors who make estate repairs, and property managers where needed.
• Eviction or tenant-removal costs: where the property has occupants whose removal is necessary to sell and the steps are proper under Montana landlord/tenant and probate procedures.

What expenses are less likely to be reimbursed automatically?

• Extravagant or unnecessary improvements made to boost resale value (major remodels) without clear authority or beneficiary consent.
• Personal expenses of the representative not linked to estate administration.
• Unauthorized payouts to third parties that exceed reasonable market rates or were not reasonably necessary.

Do I need court approval to spend estate funds?

Under Montana probate practice, ordinary and necessary expenses of administration are typically payable from estate assets without prior court approval as long as they are reasonable and supported by receipts. However, you should obtain court approval before incurring large or unusual expenditures (major renovations, long-term leases, or substantial advance payments). Court approval protects the personal representative from later claims by beneficiaries and creditors.

For statutory guidance on what expenses and fees are allowed for administrators and executors, see Montana’s probate provisions in the Montana Code Annotated. The state’s statutes and the court rules describe duties of fiduciaries, allowable compensation, and the need for court consent in specific situations: Montana Code Annotated (search Title 72 – Probate and Fiduciary Matters).

How should I document and request reimbursement?

1. Open a separate estate bank account as soon as funds come into the estate. Deposit estate income there and pay estate expenses from that account.
2. Keep detailed records: receipts, invoices, canceled checks, photographs of the property condition, estimates, contracts, and written approvals from beneficiaries or the court where applicable.
3. Prepare an itemized accounting of administration expenses (often required by the court or requested by beneficiaries). Include dates, payees, purpose, and amounts.
4. If Montana probate procedures require, file interim accountings or petitions to pay certain expenses. When in doubt, ask the probate clerk or your attorney whether a particular expense needs pre-approval.
5. If beneficiaries challenge a reimbursement, show the records, show why the expense was reasonable and necessary, and point to any court approvals you obtained in advance.

Who pays first: creditors, expenses, or beneficiaries?

In Montana the estate must pay funeral expenses, administration costs, and valid creditors from estate assets before distributing assets to beneficiaries. Expenses of preserving or preparing property for sale are generally part of the administration costs that reduce the estate’s net value available to creditors and beneficiaries.

Practical examples

Example 1 — Emergency repair: A pipe bursts and floods the basement. You hire a licensed plumber and a cleanup service immediately to prevent mold and further structural damage. These emergency repairs and remediation are typically reimbursable as necessary to preserve estate property.

Example 2 — Cosmetic remodel: The representative wants to replace the kitchen cabinets to boost sale price. Unless the improvement is necessary to prevent harm, this major expenditure may require beneficiary consent or court approval before funds are spent. If the beneficiaries agree in writing, reimbursement is more likely to be allowed.

What if I paid out of pocket?

If you used personal funds for reasonable estate expenses, you can usually seek reimbursement from estate assets. Document everything, supply receipts, and request reimbursement through the estate bank account or in your final accounting to the court. Avoid paying large sums personally without prior approval.

Where to get Montana-specific authority and forms

Find Montana probate statutes and forms at the Montana Legislature and Judicial Branch websites. These resources include statutory rules on fiduciary duties, administrator powers, and required accountings. Start here: Montana Code (leg.mt.gov) and Montana Judicial Branch (courts.mt.gov).

Helpful Hints

• Open an estate bank account immediately to segregate estate funds from your personal funds.
• Save every receipt and label it (date, vendor, reason, property address). Digital photos and scanned receipts are fine if legible.
• Get multiple written estimates for large repairs; pick licensed, insured contractors when possible.
• Seek written consent from major beneficiaries for non-emergency, high-cost improvements where feasible.
• When a large or unusual expense is necessary, consider filing a petition with the probate court asking for prior approval.
• Keep communication open with heirs. A short email explaining why an expense is needed can reduce disputes later.
• Track time if you (or another representative) perform work personally; Montana allows compensation for reasonable services but documentation helps justify reimbursement.
• Don’t assume all repairs that increase sale price will be approved — focus first on measures that prevent loss and make the property marketable.
• If the estate lacks cash, discuss options with the court or an attorney before creating personal liability by paying large amounts yourself.

Disclaimer: This article is educational only and does not constitute legal advice. Laws change and every estate has unique facts. Consult a Montana probate attorney or the probate court for advice tailored to your situation.