Detailed Answer

When someone administers an estate in New Jersey, money that the estate receives from selling estate property (sale proceeds) becomes estate funds. Those funds generally may be used to pay lawful estate expenses before distributing the remainder to beneficiaries. Lawful estate expenses commonly include funeral costs, creditor claims, taxes, costs of administration, and reasonable charges that are necessary to preserve and prepare estate property for sale — for example, junk removal, cleaning, removal of personal property, and securing the premises.

Executors or administrators act as fiduciaries. That means they must use estate funds only for proper estate-related expenses, keep clear records, act in the estate’s best interest, and avoid favoring one beneficiary over another. Ordinary, reasonable expenses that help preserve or sell estate assets are normally allowed and paid from estate accounts. For guidance about general probate procedures and fiduciary duties in New Jersey, see the New Jersey Courts probate resources: New Jersey Courts — Probate and Estate Administration.

Practical rules that apply in many cases:

• If the estate generates proceeds from sale of property, the executor may generally apply those proceeds to pay legitimate administration expenses (including junk removal and cleanup) before distributing net proceeds to beneficiaries.
• If beneficiaries have already been paid, the fiduciary should not simply take money back without consent. Instead, the fiduciary should notify beneficiaries, provide an accounting, and, if necessary, seek court approval to surcharge (recover against) beneficiaries or to reopen distributions.
• If the expense is large, unusual, disputed, or could reduce distributed shares materially, get beneficiary consent or seek a court order approving the expense. Court approval protects the fiduciary from personal liability for contested charges.
• If the estate may be insolvent (debts and expenses exceed assets), follow creditor priority rules and withhold distributions until creditor claims and priority expenses are resolved.

New Jersey’s statutes and court rules set out fiduciary duties, claims procedures, and priorities for paying debts and expenses. Those laws are in Title 3B of the New Jersey statutes (Estates and Fiduciaries). For statutory text and detailed rules, consult the New Jersey legislative site: New Jersey Legislature (Title 3B — Estates and Fiduciaries). When you anticipate disputes, large costs, or any unusual step (for example, sale of real property, major repairs, or large cleanup bills), consider filing an appropriate petition with the probate court to get instructions or approval.

Common situations — short answers

• Routine cleanup and junk removal before sale: Usually paid from estate proceeds as an ordinary administration expense.
• Large restoration or renovation to achieve a higher sales price: May require beneficiary consent or court approval before the fiduciary pays the expense or incurs the cost.
• Beneficiaries already paid and later expenses arise: The fiduciary should produce an accounting and seek agreement or a court order; do not unilaterally withhold or take money back without following procedures.
• Estate insolvent after sale: Prioritize payments to creditors and administrative costs per New Jersey probate rules; beneficiaries receive nothing until claims resolve.

In short: yes, sale proceeds can be used to pay reasonable estate expenses such as junk removal and property cleanup, but the fiduciary must act within legal duties: document expenses, avoid conflicts, and obtain consent or court approval when appropriate.

Disclaimer: This article provides general information about New Jersey probate practice and is not legal advice. It does not create an attorney-client relationship. For instructions tailored to your situation, consult a New Jersey probate attorney.

Helpful Hints

• Document everything: Save invoices, receipts, photos before/after, and written estimates for cleanup and junk removal.
• Get multiple bids for bigger jobs: That shows the expense was reasonable and necessary.
• Hold funds until creditor period ends: Don’t distribute sale proceeds immediately. Keep adequate reserves for known and potential debts.
• Communicate with beneficiaries: Tell them expected costs and share copies of bills to reduce later disputes.
• Seek written beneficiary consent if possible: Especially for large or non-routine expenses.
• Ask the court when in doubt: File a short petition for instructions or approval to protect yourself from personal liability for contested charges.
• Keep separate bank accounts: Use an estate account to receive sale proceeds and pay legitimate expenses; avoid mixing with personal funds.
• Check for liens or secured claims: Make sure paying a contractor won’t inadvertently affect priority creditors or liens on the property.
• Consult a New Jersey probate attorney early: They can explain statutory claim periods, filing requirements, and whether a bond or court supervision is advisable.