Can I Require a Co‑heir to Reimburse an Appraisal Before an Estate Buyout? — New Hampshire

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.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

Can a co‑heir be required to reimburse an appraisal before an estate buyout? — New Hampshire

Detailed Answer

Short answer: sometimes — but it depends on who ordered the appraisal, whether a personal representative (executor/administrator) is handling the estate, whether the appraisal was a reasonable estate administration expense, and whether the other co‑heirs agreed (in writing or by conduct). Under New Hampshire law, costs that are part of formal estate administration normally are paid out of the estate before distributions. When heirs act informally among themselves (no personal representative), reimbursement depends on agreement or a probate court decision.

How this plays out in two common situations (hypotheticals)

Hypothetical A — Formal administration: The estate has a court‑appointed personal representative. The PR hires a licensed appraiser to value the family house so the PR can prepare inventories, estate tax filings, or effect a buyout. In that case the appraisal is typically treated as an estate administration expense and paid from estate funds before distributing shares to heirs. If you paid the appraisal personally, you can present the bill to the PR for reimbursement from estate funds.

Hypothetical B — Informal co‑heir buyout: There is no personal representative. Two siblings agree one will buy out the other’s share and one sibling unilaterally hires an appraiser and pays the fee. Whether the buyer (or the payer) can require the other co‑heir to reimburse the cost before closing depends on the parties’ agreement. If the co‑heirs had no prior agreement, the payer can ask the other to reimburse or accept an offset from the buyout price, but the other co‑heir can refuse. In that case you either negotiate, get a written agreement (recommended), or ask the probate court to resolve reimbursement as part of a partition or accounting action.

Key legal principles relevant in New Hampshire

  • Estate‑administration expenses (reasonable fees for appraisal when done by the personal representative for estate purposes) are generally paid before distributions to heirs. For statutes and official sources about probate and estate administration, see the New Hampshire RSA index: https://www.gencourt.state.nh.us/rsa/html/.
  • When no PR is appointed and heirs handle matters among themselves, reimbursement is governed by contract principles and equitable accounting between co‑owners/co‑heirs. Without an agreement, you may need a court ruling (probate or civil) to require reimbursement or to allow cost offsets.
  • Documentation and reasonableness matter. Courts and PRs will look at whether the appraisal was reasonably necessary, whether the appraiser was qualified, and whether the fee was customary.

Practical outcomes

  • If the appraisal was ordered by the court or by the personal representative for administration, you can expect reimbursement from the estate (or payment directly by the estate) as an administrative expense.
  • If you unilaterally paid for an appraisal in an informal buyout, the other heir might agree to reimburse, accept an offset to the buyout price, or refuse — forcing you to either absorb the cost, renegotiate, or seek a court order.
  • Court involvement (probate court) can resolve disputes: the court can order reimbursement, apportion costs among co‑heirs, or appoint an appraiser acceptable to all parties.

Next steps to protect your position

  1. Get the invoice and appraisal written and itemized. Keep proof of payment.
  2. If a personal representative exists, submit the bill to the PR and ask for estate payment per usual estate accounting rules.
  3. If you and the co‑heir are negotiating a buyout, get a written agreement stating who pays what and whether appraisal costs will be reimbursed or credited against the buyout price.
  4. If the co‑heir refuses to reimburse, consider mediation or, if necessary, seek relief from the probate court to have costs apportioned or to obtain an order for reimbursement.

For official New Hampshire statutes and general probate rules, consult the New Hampshire Revised Statutes and the state court resources: New Hampshire RSA (statutes) and the New Hampshire Judicial Branch website: https://www.courts.state.nh.us/.

When to talk to a lawyer: If the amount is significant, the co‑heir refuses to reimburse, multiple heirs disagree, or the estate already has formal administration, consult a New Hampshire probate attorney. An attorney can advise whether the appraisal is a compensable estate expense, help draft a buyout agreement, or file a petition with the probate court to resolve the dispute.

Disclaimer: I am not a lawyer. This article provides general information about New Hampshire law and is not legal advice. For advice about a particular situation, consult a licensed attorney in New Hampshire.

Helpful Hints

  • Before paying for an appraisal, ask all co‑heirs in writing whether they will agree to reimbursement or credit against a buyout.
  • Preferably use a jointly selected, licensed appraiser to avoid later disputes over the appraisal’s reliability or cost.
  • If an executor or personal representative is involved, route the appraisal through them so it is treated as an estate expense.
  • Keep all receipts, the appraiser’s credentials, and the appraisal report. Courts value documentation and reasonableness.
  • Consider a short written buyout term sheet: purchase price, who pays appraiser, how appraisal costs are handled (reimbursement, split, or credited), closing timeline, and dispute resolution (mediation/arbitration).
  • If negotiations stall, ask the probate court about filing for an accounting or partition — the court can allocate costs fairly among heirs.
  • Search the New Hampshire statutes and court resources for updates before relying on specific procedural rules: New Hampshire RSA (statutes) and New Hampshire Judicial Branch.

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.