Can sale proceeds be used to pay for estate junk removal and personal property cleanup?

Short answer: Yes — under Montana law sale proceeds from estate property are estate assets and may generally be used to pay reasonable and necessary expenses of administration, including junk removal, cleaning, and removal of personal property. However, the personal representative must follow Montana probate rules: keep clear records, pay creditors in priority, get court approval for unusual or large expenses, notify beneficiaries and creditors, and avoid commingling funds. If the expense is contested or the estate is insolvent, get a court order or attorney guidance.

Detailed Answer — how this works in Montana

When a decedent’s property is sold during estate administration, the money received becomes part of the estate. The person appointed to administer the estate (the personal representative, sometimes called the executor) has a duty to marshal estate assets, pay valid debts and administration expenses, and then distribute the remainder to heirs or beneficiaries under the will or Montana law.

Key principles that apply in Montana:

Sale proceeds are estate property. Proceeds from a sale of estate real or personal property are estate funds and must be handled as part of the probate estate.
Reasonable administration expenses are allowed. Reasonable and necessary expenses of administration may be paid from estate funds. Reasonable cleanup, hauling away junk, and removal of remaining personal property to prepare a house for sale or transfer are normally considered administration expenses so long as the costs are not excessive or unnecessary.
Priority of payment. Montana law requires that estate expenses and creditor claims be handled in the proper order. Administration expenses, funeral expenses, and creditors’ claims have priority over distributions to beneficiaries. The personal representative must ensure sufficient funds remain to satisfy valid claims before distributing to heirs.
Documentation and accounting. The personal representative should document the need for cleanup, obtain and keep receipts, collect bids when appropriate, and include these expenses in the estate accounting. Proper documentation shows the expenses were necessary and reasonable.
Court supervision when needed. If beneficiaries object, the estate is insolvent, or the expenses are large or unusual, the personal representative should seek court approval (a petition to the probate court). Court approval protects the personal representative from later claims of improper spending.

Montana statutes and probate practice set the framework for these duties. For information about Montana probate statutes and procedures, see the Montana Code Annotated (Title 72, Estates and Protected Persons) and the Montana Courts’ probate resources:

Practical examples (hypothetical)

Example A: A personal representative sells a farmhouse for $200,000. The house contains years of accumulated junk and trash. The representative hires a local hauling company, pays $2,500, and documents the receipts and before/after photos. Those costs are reasonable and are paid from the sale proceeds before distributing to beneficiaries.

Example B: A personal representative wants to pay $25,000 to clear out and fully renovate a small property to increase sale price. That cost is large and could be questioned by beneficiaries. The representative should obtain multiple bids, show the renovation is needed to preserve estate value, and ideally seek court approval before spending, or disclose and get written consent from beneficiaries.

When you should get court approval or an attorney

If beneficiaries disagree about the expense or its reasonableness.
If the estate may be insolvent or has significant creditor claims.
If the expense is large relative to the estate value or appears to be a personal benefit rather than an estate necessity.
If you face a complicated title, environmental, or hazardous-materials situation during cleanup.

Helpful Hints

Open a separate estate bank account and keep sale proceeds there. Do not mix estate funds with your personal account.
Get at least two written bids for cleanup or hauling when costs exceed a few hundred dollars. Document why the service was needed.
Keep photographs, receipts, invoices, and written communications. Include those in the estate inventory and final accounting.
Notify beneficiaries and creditors as required by Montana law. Early notice can avoid later disputes.
If in doubt, file a petition with the probate court asking the judge to approve an expense or distribution. A court order reduces personal exposure to later claims.
If hazardous materials (fuel, chemical containers, asbestos, etc.) are present, hire licensed professionals and keep certificates and disposal receipts.
When selling property, consider whether cleaning before sale will produce a return greater than the expense. If so, document that economic rationale.
Consult a local probate attorney if the estate is large, disputed, or possibly insolvent. An attorney can prepare the necessary petitions and protect the personal representative from liability.

Disclaimer: This article provides general information about Montana probate practice and is not legal advice. It does not create an attorney-client relationship. For advice about a specific situation, contact a licensed Montana probate attorney or petition the probate court.