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When you are handling an estate in New Mexico, certain costs you pay to preserve or prepare estate property for sale can usually be reimbursed from estate funds. These are treated as administration expenses and generally have priority over distributions to heirs or beneficiaries. The key rules to keep in mind are: expenses must be necessary or reasonable, must benefit the estate, and should be well documented. This answer summarizes common reimbursable expense categories, how reimbursement normally works, and practical steps to protect yourself as a personal representative (executor/administrator).

Common types of reimbursable expenses

• Insurance premiums (homeowner’s, flood, liability) required to protect estate property while it is being administered.
• Property taxes and assessments that become due while the estate owns the property.
• Mortgage or secured loan payments and other liens that must be paid to avoid foreclosure or loss of value.
• Utilities (electric, gas, water, sewer, trash) needed to maintain the property and prevent damage.
• Emergency or preservation repairs (roof leaks, broken windows, plumbing or HVAC fixes) required to prevent further damage or to secure the premises.
• Routine maintenance (lawn care, snow removal, pest control, pool maintenance) necessary to preserve marketability and avoid code violations or fines.
• Securing and safety measures (changing locks, boarding up, alarm setup, temporary fencing) to protect against vandalism or theft.
• Cleaning and trash removal so the property can be shown, appraised, or marketed.
• Appraisal, inspection, and environmental testing fees needed to establish value or uncover issues before sale.
• Real estate brokerage fees and advertising costs paid to list and market the property (these are normally paid at closing from sale proceeds).
• Moving, storage, and removal of personal property when necessary to prepare the property for sale.
• Court filing fees and reasonable attorney fees and other probate costs incurred to administer the estate (these are generally reimbursable as administration costs).

What may be disallowed or require court approval

Not every expense will automatically be reimbursed. Examples of items that often require prior approval or may be denied if challenged:

• Major renovations or value‑adding improvements (extensive remodeling). These can be considered a change in the nature of the asset and may require court authorization or the beneficiaries’ written consent.
• Unreasonably large or unnecessary expenditures (luxury repairs or upgrades). Reimbursement must be reasonable in light of estate size and likely sales price.
• Personal labor by the personal representative without documentation or prior approval—some courts permit reasonable compensation, but hours should be documented and compared to market rates.

How reimbursement typically works in New Mexico

Under the principles that guide probate administration in New Mexico, expenses that are necessary for administration and preservation of estate property are paid out of estate assets before distributions to beneficiaries. As personal representative, you should:

1. Open a separate estate bank account and deposit estate receipts there.
2. Pay reasonable administration expenses from that account and keep strict records.
3. File an inventory and records when required by the court and include receipts and an accounting of expenditures.
4. If you expect large or contested expenses, seek prior court approval or obtain assent from beneficiaries in writing to reduce the risk of later surcharge (a court order requiring you to repay the estate).

For guidance on probate procedures in New Mexico (forms, filing requirements, and local court rules), see the New Mexico Courts probate self-help resources: https://www.nmcourts.gov/self-help/probate/. If you want to review New Mexico statutes related to estates and trusts, start at the New Mexico Legislature site: https://www.nmlegis.gov/ and search for the Uniform Probate Code (NMSA Chapter 45) and related sections on administration, personal representative duties, and allowances.

Documentation you should keep

Good recordkeeping makes reimbursement straightforward and reduces disputes:

• Original receipts, invoices, and paid bills.
• Bank statements showing estate payments (use a dedicated estate account).
• Photos of the property before and after repairs or cleaning.
• Written estimates and signed contracts for repairs, services, or real estate work.
• Copies of communications with beneficiaries, contractors, insurance companies, and lenders.
• An itemized ledger (date, vendor, purpose, amount, check or transaction number).

Practical examples (hypotheticals)

Example A: A leaking roof caused water damage. You hired a contractor to patch the roof and fix interior damage. These emergency repairs are generally reimbursable as necessary to preserve estate property.

Example B: The house needed cosmetic remodelling to raise sale price by a small percent (e.g., replacing dated fixtures). Small, reasonable cosmetic repairs and cleaning to make the home marketable are typically reimbursable. Major kitchen remodels where cost far exceeds expected increase in sale price may require court approval.

When to get court approval or professional help

Seek court approval (or written beneficiary consent) when:

• Planned expense is large relative to estate value.
• Planned repair changes the character of the property (significant renovations).
• There are disputes among heirs or creditors about whether to sell or keep the property.

Consider consulting a probate attorney if the estate is complex, the value is substantial, or beneficiaries are not in agreement. An attorney can help you budget anticipated administration costs, prepare accountings, and obtain orders approving reimbursement and sales when necessary.