Keeping Estate Property in Good Condition: What North Dakota Executors and Personal Representatives Can Track and Seek Reimbursement For

This FAQ explains, in simple terms, what costs you can reasonably track and request reimbursement for when you maintain estate property in North Dakota before it is sold. This is educational information only and not legal advice. Consult a North Dakota probate attorney before spending significant estate funds or making major repairs.

Detailed answer

When someone dies, the personal representative (executor, administrator, or other appointed fiduciary) must preserve estate assets until they are distributed or sold. North Dakota law allows the estate to pay “reasonable and necessary” expenses of administration from estate assets. That commonly includes costs the representative incurs to maintain real property until sale. Always follow any court orders or the will’s directions and keep careful records; the court will review and allow or disallow expenses during probate accounting.

For general statutory guidance, review North Dakota’s probate provisions in the North Dakota Century Code (Title 30) and the probate court rules. Helpful government pages: North Dakota Century Code (search Title 30) and North Dakota Courts (probate information). If you expect a contested claim for reimbursement, ask the court for prior approval.

Who may be reimbursed?

The personal representative appointed by the probate court may be reimbursed for out-of-pocket, reasonable, and necessary expenses paid on behalf of the estate. If a third party (for example, a family member) advances funds on behalf of the estate, that person can seek reimbursement, but the court will typically require documentation and may require prior court approval for large sums.

Typical expenses you should track and that are commonly reimbursable

• Property taxes and assessments: Pro-rated property taxes that protect the estate from penalties or foreclosure while the property remains unsold.
• Mortgage payments and other secured obligations: Payments necessary to avoid default or foreclosure on estate-owned real estate (only to the extent they preserve value).
• Insurance premiums: Homeowner, hazard, flood, or liability insurance necessary to protect the property.
• Utilities and basic services: Electricity, water, gas, sewer, and reasonable winterization or winter heating to prevent damage.
• Routine maintenance and emergency repairs: Boarding windows, fixing a leaking roof to prevent further damage, pumping out a flooded basement, securing doors, or removing immediate hazards. These are typically reimbursable if they are reasonable and necessary to preserve value.
• Security and upkeep: Reasonable locksmith, alarm, or security service fees, snow removal, lawn care, and pest control needed to protect the property and keep it sale-ready.
• Appraisal, inspection, and marketing costs: Professional appraisal, property inspection, repair estimates, photos, and reasonable advertising or MLS listing fees to market the property for sale.
• Real estate closing costs and seller obligations: Title fees, recording fees, prorated taxes at closing, and other ordinary closing costs paid to effect the sale.
• Costs of removing tenants or evicting unlawful occupants: Legal fees and court costs directly connected to removing occupants to allow sale — but follow eviction law and get court direction if necessary.
• Reasonable legal fees related to administration and sale: Attorneys’ fees for probate administration and for obtaining court authority to sell property or defend estate actions; usually allowed if reasonable and approved by the court.

Expenses that are often not reimbursable (or need prior approval)

• Major capital improvements: Large renovations or upgrades (e.g., new addition, major remodeling) that substantially change the property’s character or increase value may not be reimbursed unless the court authorizes them or they are clearly necessary to sell the property.
• Luxury or elective services: High-end cleaning, furnishing, or decorative upgrades that are not reasonably needed to preserve value or enable sale.
• Personal expenses: Any costs unrelated to the estate or the property (personal travel, meals, or personal benefits) are not reimbursable.

How reimbursement usually works in North Dakota

The personal representative typically pays expenses from an estate bank account. The representative must keep a full accounting of receipts and invoices and report those expenses in the estate’s inventory and final accounting. The probate court will review the accounting and allow reasonable expenses to be paid from estate assets before distributions to heirs or beneficiaries. If the representative expects to incur large or unusual costs, the best practice is to ask the court for pre-approval or a court order allowing the specific expense or sale terms.

How to document and present expenses for reimbursement—practical steps

• Open a separate estate bank account and route all estate transactions through it.
• Keep original receipts, paid invoices, cancelled checks, and credit card statements. Save contracts, bids, and written estimates for repairs or services.
• Photograph damage and repairs (before and after photos) to show necessity and reasonableness.
• Get at least two competitive bids for non-emergency repairs or services; keep the bids with the file.
• Record dates, purpose, and payee for each expense. Use accounting software or a simple spreadsheet to track each expense category.
• If you personally advance funds, record the advance clearly and keep proof of payment; consider asking the court to authorize reimbursement in advance for large personal advances.
• When selling, keep real estate commission agreements, closing statements (HUD-1/Closing Disclosure), title charges, and other closing documents as part of the estate accounting.

When to get court approval

Seek court approval before incurring major expenses or capital improvements. If an interested party (heir or creditor) may object, a prior court order reduces the risk the court will later deny reimbursement. The court can approve extraordinary repairs, sale terms, and payment of attorneys’ fees and commissions.

Helpful Hints

• Track everything from day one: neat, organized records make accounting and court review much easier.
• Use an estate bank account to avoid commingling your funds and the estate’s funds.
• Prioritize emergency repairs that prevent loss, then get multiple bids for non-emergency work.
• Don’t make big improvements to increase sale price without court approval.
• Ask the probate court for guidance or an order if you expect disputes or large outlays.
• Consider hiring a probate attorney early — small legal fees often prevent larger disputes and may be reimbursable.
• Communicate with heirs and beneficiaries: transparency reduces later challenges.

Where to read North Dakota law

Browse North Dakota statutes and probate rules on the North Dakota Legislative Branch website: https://www.legis.nd.gov/cencode. You’ll find estate administration provisions under Title 30 (Decedents’ Estates). For court procedures and forms, see the North Dakota Courts website: https://www.ndcourts.gov.

Final notes

Not every expense you pay will be approved. The court looks for necessity, reasonableness, and proof. When in doubt about large costs or actions that materially affect estate value, seek a probate court order or legal advice in North Dakota before proceeding.

Disclaimer: This article is educational only and does not constitute legal advice. For advice about a specific probate matter in North Dakota, consult a licensed North Dakota probate attorney.