Short answer

Reasonable and necessary expenses that preserve, protect, or prepare estate property for sale are normally paid from the estate and reimbursable to the personal representative (executor/administrator). Typical categories include utilities, insurance, ordinary repairs, property taxes, property management fees, security, appraisal and inspection costs, and closing/sale-related fees. Major or unusual expenditures and fiduciary compensation often require either beneficiary consent or court approval.

What Nebraska law requires

Nebraska’s probate statutes establish the duties of the personal representative, including preserving estate property and paying estate expenses from estate funds. The Nebraska Probate Code (Neb. Rev. Stat., Chapter 30) is the primary authority governing administration, fiduciary duties, and payment of estate claims. For the statutes, see: Nebraska Revised Statutes, Chapter 30 (Probate Code).

In practice, courts expect the fiduciary to act reasonably, avoid waste, and keep clear records. Court approval or beneficiary agreement is recommended for large or non-routine expenses.

Common reimbursable expense categories

Below are the typical items a personal representative can track and seek reimbursement for out of estate assets:

• Property insurance — premiums to keep fire, liability, or hazard insurance current to protect estate assets while on the market.
• Utilities and basic services — electricity, water, gas, trash removal, septic or well maintenance necessary to avoid damage or maintain showability.
• Security and pest control — alarm monitoring, locks, boarding, pest treatment to prevent vandalism or infestation that could reduce value.
• Ordinary repairs and maintenance — routine repairs (roof patching, plumbing fixes, HVAC service, lawn care) needed to prevent waste or to bring property to marketable condition.
• Necessary renovations or improvements — limited, reasonable repairs that materially increase marketability (e.g., replacing a broken furnace) but exercise caution: substantial improvements may require beneficiary consent or court approval.
• Real estate taxes and assessments — current property taxes, special assessments, and homeowner-association dues to avoid penalties or liens that would diminish estate value.
• Mortgage interest and loan payments — continuing payments or interest on estate debts secured by the property; note that the estate remains responsible for lenders’ rights.
• Appraisal, inspection, and environmental reports — professional fees needed to list, price, and sell the property.
• Real estate broker fees and marketing costs — commissions and listing expenses are paid at closing from sale proceeds but should be tracked as estate costs.
• Closing and transfer costs — recording fees, title search, escrow, and closing costs associated with sale.
• Property management fees — if the estate uses a manager or agent to handle upkeep or showings, reasonable management fees are reimbursable.
• Moving, storage, and clean-out costs — professional clean-outs, storage rentals, and hauling of unwanted items required to prepare for sale.
• Legal and accounting fees — ordinary probate attorney fees, accounting, and filing costs necessary to administer the estate (subject to statutory or court review).

What expenses might NOT be reimbursable (or need extra approval)

• Unapproved major renovations or discretionary upgrades that substantially change the estate’s character without beneficiary consent or court order.
• Personal expenses of the representative that are unrelated to estate administration.
• Expenses that create conflicts of interest or benefit the representative personally unless fully disclosed and approved.
• Costs incurred after distribution of assets that should have been handled before closing the estate.

Practical steps to document and claim reimbursement

1. Open an estate bank account — deposit estate receipts and pay estate expenses from a dedicated account to keep funds separate and auditable.
2. Get pre-approval for large or unusual expenses — obtain written beneficiary consent or a court order for major repairs, improvements, or expenditures that are not clearly ordinary and necessary.
3. Keep detailed records — save invoices, receipts, check images, bank statements, contracts, before-and-after photos, and notes explaining why each expense was necessary.
4. Maintain an expense ledger — log date, vendor, reason, amount, and which property the cost relates to; this simplifies estate accounting and the eventual final accounting to the court or beneficiaries.
5. Document communications — record beneficiary approvals, contractor estimates, and any court orders authorizing spending.
6. Track income and offsets — if property rents or generates income while held, record that income; sale proceeds generally pay the estate’s expenses before distributions.
7. Use licensed professionals — obtain estimates from licensed contractors, licensed real estate brokers, and qualified appraisers to justify expenses and value added.

When to ask the court for instructions

Ask the probate court for instructions or approval if you face disputed decisions, foresee major expenditures, or encounter creditor or lien issues. A court order reducing later disputes can protect the personal representative from liability.

How reimbursement is usually handled at sale or distribution

When the property sells, closing proceeds first pay secured claims (like mortgage liens) and then pay estate administration costs, taxes, and approved debts. Remaining proceeds become estate assets available for creditor claims and distribution to beneficiaries. The personal representative should include these tracked expenses in the estate accounting submitted to beneficiaries and/or the court for approval.

Helpful hints

• Start tracking expenses immediately — early documentation is the strongest proof.
• Use a simple spreadsheet or bookkeeping software for the expense ledger; include scanned receipts.
• Label receipts with the estate name, property address, and purpose of the expense.
• When possible, get cost estimates and bids in writing and keep before/after photos of repairs.
• Communicate proactively with heirs — written consent to routine repairs can prevent later objections.
• Consult a probate attorney if you anticipate large costs, disputes, or issues with secured creditors.
• Remember that estate funds belong to beneficiaries — act conservatively and document necessity for each expense.