How Executors and Administrators Can Handle Estate Property Expenses in New Hampshire

Disclaimer: This article is for general informational purposes only and is not legal advice. For guidance specific to your situation, consult a licensed New Hampshire probate attorney.

Detailed Answer

If you are serving as a personal representative (executors, administrators, or other fiduciaries) in New Hampshire, you have a duty to preserve estate assets and to minimize loss while probate is pending. Reasonable, necessary expenses paid to maintain, protect, and prepare estate property for sale are commonly paid from the estate and reimbursed to the fiduciary or to third-party vendors. Below is an organized explanation of the typical categories of reimbursable expenses, how reimbursement usually works, and practical steps to protect yourself and the estate.

Common categories of reimbursable expenses

• Insurance premiums — hazard, fire, flood, and liability policies required to protect the property until sale.
• Property taxes and municipal assessments — current taxes and special assessments that the estate must pay to avoid liens.
• Mortgage payments and lien-related costs — ordinary mortgage interest and required payments to prevent foreclosure; payments toward liens that must be cleared to sell.
• Utilities and ongoing operating costs — electricity, heat, water, septic maintenance, and other utility charges the estate must pay to keep the property in sellable condition.
• Routine maintenance and security — lawn care, snow removal, locking and boarding, locksmith services, alarm system costs, pest control, and other measures to prevent waste or vandalism.
• Repairs necessary to preserve value — repairs that prevent further damage (roof leaks, broken furnace in winter, emergency plumbing) or are required by law for occupancy; avoid unnecessary cosmetic upgrades unless approved.
• Preparation for sale costs — reasonable cleaning, staging, minor cosmetic work that meaningfully increases marketability, professional photography, and repairs required by buyer inspections.
• Costs of sale — real estate commissions, marketing costs, appraisal and inspection fees, title search and closing costs, and recording fees paid at closing.
• Professional fees — reasonable attorney fees, accountant fees for tax or estate accounting, appraiser fees, and costs for obtaining surveys or environmental reports when needed to effect a sale.
• Moving, storage, and removal — costs to clean out, move, store, or dispose household goods and personal property before sale.

What counts as “reasonable” and “necessary”?

Courts generally allow reimbursement only for expenses that a prudent fiduciary would incur to preserve estate assets. Emergency and preservation costs (e.g., fixing a leaking roof to stop interior damage) are more clearly recoverable than elective improvements (e.g., luxury renovations). If an expense clearly increases the estate’s value or prevents loss, it is more likely to be allowed.

How reimbursement is typically approved

• Pay expenses out of a dedicated estate bank account when possible. That keeps estate funds separate from your personal funds and simplifies accounting.
• Keep detailed records: invoices, receipts, cancelled checks, photos (before/after), written bids, and a short explanation of why each expense was necessary.
• Notify beneficiaries. Many fiduciaries give beneficiaries an interim accounting or at least a notice describing major expenditures. This can reduce disputes.
• Court approval: for large, unusual, or contested expenses, seek prior permission from the probate court. If beneficiaries object after the fact, the court will decide whether to allow reimbursement. In New Hampshire, the Probate Court handles administration matters; see the Probate Court information at the New Hampshire Judicial Branch: https://www.courts.state.nh.us/probate/.
• Final accounting and allowance: at the closing of the estate, the personal representative usually files a final account. The court or the beneficiaries will review and allow reasonable administration expenses before distributing the remainder to beneficiaries.

When you may need prior court permission

Get prior court permission for big-ticket items or discretionary decisions that could be controversial—major renovations, long-term leases, or payroll for estate employees. When in doubt, ask the court or counsel. The New Hampshire statutes and probate rules provide the framework for fiduciary duties and estate administration; you can browse the state statutes here: https://www.gencourt.state.nh.us/rsa/html/.

What if a beneficiary objects?

If a beneficiary objects to a reimbursement, attempts should be made to resolve the dispute by providing documentation and explanation. If that fails, the probate court decides whether the expense was reasonable and whether the fiduciary acted within the scope of their authority. Keep in mind that inadequate documentation weakens your position.

Helpful Hints

• Open a separate estate bank account immediately to receive estate funds and pay estate expenses. This creates a clear audit trail.
• Document everything. Save receipts, invoices, contracts, emails, text messages, and photos. Good records make reimbursement routine.
• Prioritize preservation over improvement. Fix hazards and urgent problems first; defer cosmetic upgrades unless approved by beneficiaries or the court.
• Get multiple bids for larger repairs. This supports reasonableness if a cost is later questioned.
• Provide periodic, brief accountings to beneficiaries so they know what you are spending and why. That reduces surprises and disputes.
• For complex estates or big expenditures, consult a New Hampshire probate attorney before proceeding.
• If property carries mortgages or liens, confirm payoff figures and who is authorized to pay them. Failure to address liens can block a sale.
• Keep personal and estate funds separate. Do not use personal credit or payors for estate bills without documenting reimbursement steps.

For official information about probate procedures and forms, visit the New Hampshire Judicial Branch Probate page: https://www.courts.state.nh.us/probate/. For the text of New Hampshire statutes, use the state legislature’s RSA repository: https://www.gencourt.state.nh.us/rsa/html/.

If you would like, I can outline a sample checklist and a template expense log you can use while administering an estate in New Hampshire.