Detailed Answer

In New Mexico, money received from selling estate property becomes estate cash. That cash is generally available to pay legitimate estate administration expenses, including reasonable costs to clean, remove junk, and prepare property for sale or distribution. The personal representative (executor or administrator) has a fiduciary duty to preserve estate assets, pay valid debts, and act in the best interest of the estate and beneficiaries. Paying necessary cleanup and removal costs is commonly part of that duty when such work protects the value of estate property or is required to complete a sale.

How this works in practice:

• Sale proceeds are estate assets. When property is sold, the proceeds are estate funds and are used to pay administration expenses and valid creditor claims before beneficiaries receive distributions.
• Reasonable and necessary expenses are appropriate. Cleanup, junk removal, and hauling away personal property that is required to market or sell the real estate are typically reasonable estate expenses. The personal representative should document why the work was necessary (for example: to comply with local housing rules, to make the property marketable, or to remove hazardous material).
• Keep detailed records. The personal representative must keep invoices, contracts, receipts, before-and-after photos, and written estimates. These records are required for the estate accounting and to defend against beneficiary or creditor challenges.
• Priority of payment. Under the probate system, administration expenses and valid creditor claims must be paid before distributions to heirs or beneficiaries. If the estate is insolvent, expenses and debts may consume all or most sale proceeds.
• Court oversight for disputed or large expenses. If beneficiaries object or the expense is unusually large or discretionary (for example, hauling away collectible personal property that beneficiaries may want), the personal representative should seek court approval. A court order protects the representative from liability if the expenditure is later questioned.
• Avoid conflicts and self-dealing. The personal representative should avoid hiring family businesses or paying themselves for cleanup without clear documentation or court approval. If the representative is paid for work or profits from the transaction, disclosure and, in some cases, court approval will be necessary to prevent claims of self-dealing.

Relevant law and further reading: New Mexico’s probate rules and statutes govern the duties of personal representatives, what qualifies as proper administration expenses, and the order of payments from estate assets. For the official New Mexico probate statutes and related guidance, see the New Mexico Legislature’s statutes page and the New Mexico Courts’ probate resources:

• New Mexico Statutes (New Mexico Legislature) — see the probate code chapters for detailed statutory rules about administration, duties, and priorities.
• New Mexico Courts — Probate Self-Help and Resources — practical court information, forms, and procedural guidance.

Example (hypothetical): An estate sells a house for $150,000. The buyer requires the house be cleared and the county requires hazardous waste removed. The personal representative hires a licensed removal company for $2,500 and pays from the sale proceeds. The representative documents the estimates, contract, and receipt, lists the payment as an administration expense in the estate accounting, and distributes the remaining balance to creditors and beneficiaries in the statutorily required order. If a beneficiary objects to the cost, the representative can present the documentation to the court and, if needed, seek an order confirming the expense.

When to seek court approval before paying cleanup expenses:

• If the cost is large relative to the estate.
• If beneficiaries object or there is a dispute over whether the cleanup was necessary.
• If the work involves removing items with potential value (antiques, collectibles) and beneficiaries may claim them.
• If the personal representative wants to hire a related party or pay themselves for the work.

Bottom line: Yes — under New Mexico probate practice, sale proceeds are typically available to pay reasonable and necessary estate administration expenses such as junk removal and cleanup. The personal representative should document necessity and cost, follow statutory duties, and obtain court approval when costs are large or contested.

Disclaimer: This article explains general principles and does not provide legal advice. It is not a substitute for consulting a licensed New Mexico attorney about your specific situation.

Helpful Hints

• Get at least two written estimates before hiring a removal or cleanup company.
• Use written contracts that describe work, price, and waste disposal methods (hazardous materials require licensed contractors).
• Keep before-and-after photos and all receipts for the estate accounting and court filings.
• If possible, consult beneficiaries before spending large sums; written consent can prevent later disputes.
• Do not mix personal funds with estate funds. Pay cleanup costs from estate accounts or proceeds and record the transaction.
• If you are the personal representative and plan to hire a family business, disclose the relationship to beneficiaries and seek court approval if the amounts are significant.
• If the estate is small, investigate New Mexico’s simplified or small-estate procedures — sometimes those permit quicker collection and distribution but still require paying debts and expenses first. See New Mexico Courts for small-estate options: https://www.nmcourts.gov/self-help/probate/.
• When in doubt, consult a New Mexico probate attorney before spending sale proceeds on contested or high-cost cleanup work.