Can I reimburse myself from the estate for the money I paid from my own funds toward the decedent’s vehicle lien?

Short answer: Possibly — but it depends on your role, why you paid the lien, whether the payment was necessary to preserve estate property, and whether you followed the proper probate procedures. If you are the court-appointed personal representative, you generally can be reimbursed for reasonable, necessary expenses of administration if you properly document and account for them. If you are not the personal representative and you paid voluntarily, you may need to present a claim to the estate or ask the court to allow reimbursement.

Detailed answer — how this works in New Mexico

Start with the basic concepts. When someone dies, their assets and debts go into their estate. The estate must pay certain debts and administration costs before distributing what remains to heirs or beneficiaries. Courts generally allow the estate to reimburse persons who advance funds for legitimate, necessary expenses of administration so long as the payments are properly documented and approved.

Who paid the lien?

• If you are the personal representative (PR) or executor): A PR may incur and pay for reasonable and necessary expenses to preserve estate assets (for example, paying a vehicle lien to prevent repossession or to clear title so the vehicle can be sold). To be reimbursed you should: document why the payment was necessary; keep original receipts and bank records showing the payment; record the payment in the estate inventory/accounts; and either obtain beneficiary consent or court approval if required. Reimbursement typically comes out of estate funds before distribution to heirs.
• If you are an heir, beneficiary, or a third party (not the PR): Your payment is usually treated as a claim against the estate. Present a written claim to the PR with supporting documents (receipts, title/lien documents, explanation of why payment was required). The PR may pay the claim as an estate expense or refuse. If the PR refuses, you can petition the probate court to allow payment of the claim as an expense of administration.

Key issues courts consider

• Was the payment necessary to preserve estate property? (e.g., to avoid repossession or to remove a lien that blocked sale or transfer)
• Was the amount reasonable?
• Did you document the payment and the reasons for it?
• Did you follow probate rules — filing inventories, listing the expense on accountings, and giving notice to interested persons if required?

Typical steps to get reimbursed in New Mexico

1. Gather proof: written lien statement, title documents, payment receipts, bank records, and any correspondence showing the risk (e.g., notice of repossession).
2. Provide the PR with a written claim and all supporting documents. Ask the PR to include the expense in the estate accounting.
3. If you are the PR, include the expense in the inventory and accounting you file with the court and notify heirs/creditors as required by New Mexico probate procedure.
4. If the PR refuses to pay or if there is a dispute, file a petition with the probate court asking the judge to allow the claim as an administrative expense.
5. If the estate is insolvent or has higher-priority creditors, your claim may be subordinated; administrative expenses and certain debts get priority under probate priority rules.

Special situations

• Small estates: If the estate qualifies for New Mexico’s small estate procedures, transferring the vehicle may be handled without formal administration. Even then, if you paid the lien and wish reimbursement, you should present documentation and an agreement of beneficiaries.
• Title issues: Paying a lien may produce a clear title. If you intend reimbursement by selling the vehicle, document the sale and the proceeds in the estate accounting.
• Family agreements: If all heirs agree in writing to reimburse you from the estate or from their shares, get that agreement signed and, if needed, filed with the probate court to avoid later disputes.

How New Mexico probate procedure affects this

New Mexico law requires personal representatives to account for estate receipts and expenditures and to pay valid debts and expenses in a specific order set by probate rules. That means legitimate administrative expenses — including necessary costs to preserve estate property — are typically paid before distributions to heirs. For general information on probate practice and forms in New Mexico, see the New Mexico courts’ probate self-help pages: https://www.nmcourts.gov. For the text of New Mexico statutes, see the New Mexico Legislature’s statutes portal: https://www.nmlegis.gov/.

Practical examples

1) You are the PR and the lender threatened to repossess the decedent’s car. You paid off the small remaining lien to protect the asset and later sold the vehicle. You should include the lien payment and sale proceeds on the estate accounting. The estate will reimburse you for the lien payment as a reasonable administration expense (provided it is documented and approved).

2) You are an heir who paid a lien because you wanted to keep the car and the PR was unresponsive. Present a written claim with receipts to the PR. If the PR refuses, you can petition the probate court to allow the claim; the court will decide whether to permit reimbursement from estate assets or by reducing distributions to heirs.

What to do next — checklist

• Stop any further payments until you understand your role and the estate’s status.
• Collect all paperwork: title, lien statement, payment receipts, bank records, and any notices about repossession.
• If you are not the PR, submit a written claim to the PR immediately with copies of documents and a clear explanation.
• If you are the PR, document the payment in the estate inventory and accounting and keep beneficiary notice requirements in mind.
• If payment is disputed, consider filing a petition with the probate court asking the court to allow reimbursement.
• Talk to a probate attorney if the amount is substantial or if heirs/creditors dispute the payment.

Helpful hints

• Keep originals and create a simple timeline showing why payment was necessary.
• Get beneficiary consent in writing when possible — it reduces disputes.
• When acting as PR, get court guidance (or approval) in unusual situations to protect yourself from personal liability.
• File claims promptly — estates follow notice and deadline rules for creditor claims and accountings.
• If you expect to be reimbursed from sale proceeds, clearly track sale receipts and distribution calculations in the estate accounting.
• Consult a probate attorney if the estate is insolvent or the payment could affect priority among creditors.

Where to find more information

General probate information and forms: https://www.nmcourts.gov

New Mexico statutes and legislative resources: https://www.nmlegis.gov/

Disclaimer: This article explains general principles under New Mexico probate practice. It is educational information only and is not legal advice. For advice about a specific situation, consult a licensed New Mexico probate attorney who can evaluate the facts and recommend the correct legal steps.