Nevada: Reimbursable Expenses for Maintaining Estate Property Before Sale

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.

Detailed Answer

Short answer: Under Nevada law, a personal representative (executor or administrator) may pay reasonable and necessary expenses to preserve, manage, and prepare estate real property for sale and seek reimbursement from the estate. Typical reimbursable costs include utilities, property insurance, ordinary repairs and maintenance, property taxes and assessments, mortgage or HOA payments (to avoid foreclosure), advertising and sale-related costs, and certain professional fees. You should document everything, separate estate and personal expenses, and seek court approval when costs are unusual, large, or disputed.

What legal authority applies

Nevada’s probate laws set out the duties and powers of a personal representative and the order in which estate obligations are paid. For general rules and statutory authority, review Nevada’s probate provisions at the Nevada Revised Statutes (NRS) website: https://www.leg.state.nv.us/NRS/. Nevada courts and self-help probate pages also summarize common duties and filing procedures: https://nvcourts.gov/.

What categories of expenses are normally reimbursable

  • Property insurance: Premiums to keep casualty or hazard insurance in force so the estate property is protected against loss.
  • Utilities & basic services: Electricity, water, gas, trash removal, and unlocking/locksmith fees to secure and maintain the property.
  • Routine maintenance and minor repairs: Lawn care, pest control, winterization, roof tarping, replacing broken windows, or other repairs necessary to prevent deterioration.
  • Major repairs or improvements: Necessary repairs to make the property marketable (e.g., fixing a broken roof) may be reimbursable, but large expenditures often require prior court approval.
  • Property taxes, assessments, HOAs, and mortgage payments: Payments that preserve title or prevent foreclosure or liens are commonly paid from estate funds.
  • Sale costs: Real estate commissions, staging, advertising, escrow and closing fees, title updates and recordation fees, and costs of preparing the property for sale.
  • Professional fees: Reasonable fees for licensed contractors, real estate agents, appraisers, accountants, and attorneys (attorney fees are often subject to court review).
  • Mileage and travel: Reasonable travel costs to inspect, secure, or show property may be reimbursable, documented at standard per-mile rates or actual costs.

How reimbursement normally works

  1. Keep accurate records: Collect invoices, receipts, cancelled checks, photos, estimates, and any written contracts.
  2. Use an estate bank account: Deposit estate funds and pay estate expenses from a separate account to avoid commingling personal funds.
  3. Include expenses in the inventory/accounting: When you file the inventory and appraisement and any interim or final account with the probate court, list expenses and attach documentation. Beneficiaries receive notice and an opportunity to object.
  4. Seek court approval if needed: For unusually large repairs, improvements, or disputed reimbursements, file a petition to allow the expense or authorize sale/repairs. The court can approve reimbursements, impose conditions, or deny payment.
  5. Priority of payment: Estate administration costs and court-approved expenses are generally paid from the estate before distributions to beneficiaries. Keep in mind creditors’ claims and statutory priority rules affect available funds.

When to get prior court approval

Obtain court permission before committing to significant expenses or improvements that could be seen as altering estate assets’ character or value (for example, major renovations or long-term mortgages). Also seek approval before selling estate property, paying large contractors, or incurring attorney fees beyond ordinary administration if beneficiaries object. A court order reduces the risk you will be personally liable for unauthorized costs.

Documentation and best practices

Document everything carefully. Good documentation both supports reimbursement and protects a personal representative from personal liability:

  • Save every invoice, paid receipt, and contract.
  • Take dated photos of the property before and after work.
  • Get multiple estimates for major repairs and keep written approval from beneficiaries when possible.
  • Record mileage, purpose of travel, and dates for property visits.
  • Keep a ledger or spreadsheet showing dates, amounts, payees, and reasons for each expense.

Examples (hypothetical)

Example 1: A decedent’s house is vacant. The personal representative pays the electric and water bills, hires a locksmith and lawn service, and pays for hazard insurance. These are ordinary, necessary costs to preserve value and are usually reimbursable.

Example 2: The house needs a new furnace costing $8,000 to be marketable. The representative should obtain contractor estimates, notify beneficiaries, and either obtain their consent or petition the probate court to authorize the expenditure before proceeding to avoid personal liability.

Potential pitfalls

  • Commingling personal and estate funds can create personal liability and make reimbursement difficult.
  • Spending estate money on nonessential cosmetic upgrades (luxury renovations) without court approval risks disallowance and personal liability.
  • Failing to preserve documentation may result in denied claims at accounting or final distribution.

Where to look in Nevada law

Nevada’s probate statutes and court rules describe the powers, duties, and accounting requirements for personal representatives. Consult the Nevada Revised Statutes (NRS) for probate provisions: https://www.leg.state.nv.us/NRS/. For practical filing steps and local forms, see the Nevada Courts self-help probate pages: https://nvcourts.gov/.

What to do next

  1. Open a dedicated estate bank account and deposit any estate receipts.
  2. Track and save receipts for all maintenance, utilities, insurance, mortgage/HOA and sale-related expenses.
  3. Get written estimates for major repairs and ask beneficiaries for consent where feasible.
  4. If you anticipate large expenses or foresee a dispute, consider filing a petition with the probate court to authorize the work and payment.
  5. Talk with a probate attorney in Nevada for case-specific guidance—especially for contested estates, large expenditures, or complex title/mortgage issues.

Disclaimer

This article provides general information about Nevada probate practices and is not legal advice. It does not create an attorney-client relationship. For advice about your specific situation, consult a licensed Nevada probate attorney.

Helpful Hints

  • Open a separate estate bank account immediately to track expenses and avoid commingling.
  • Always get written receipts and written estimates for repairs and services.
  • Take timestamped photos before and after any work on the property.
  • Notify beneficiaries early about planned expenditures; written consent can simplify reimbursement later.
  • Get court approval for large or unusual expenses to prevent personal liability.
  • Pay ongoing obligations (insurance, taxes, mortgage/HOA) promptly to prevent liens or foreclosure.
  • Keep a simple ledger or spreadsheet that ties each payment to a receipt and a reason.
  • When in doubt, consult a Nevada probate attorney to avoid costly mistakes.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.