Maintaining Estate Property: What Costs Can a Fiduciary Recover in Rhode Island?

Summary: When you administer an estate in Rhode Island and need to maintain real property before sale, many out‑of‑pocket costs can be paid from estate funds or later reimbursed to you as the personal representative (executor or administrator). This article explains the types of expenses that are ordinarily allowed, how to document them, when to get court or beneficiary approval, and steps to reduce personal liability. This is educational information only and not legal advice.

Detailed answer

As the fiduciary charged with managing estate assets in Rhode Island, your duty is to preserve value and act in the best interests of the estate and beneficiaries. Reasonable and necessary expenses incurred to preserve, protect, and prepare estate real property for sale are generally chargeable to the estate and reimbursable through estate administration. Typical reimbursable categories include:

• Insurance: hazard, homeowners, flood, or liability insurance required to protect the property during administration.
• Mortgage, loan, and secured debt payments: payments necessary to avoid foreclosure or preserve liens, when estate funds are used to maintain the property’s value.
• Property taxes and assessments: current real estate taxes and municipal assessments to avoid penalties, interest, or tax liens.
• Utilities and basic services: electricity, gas, water, sewer, and basic trash removal needed to maintain the property in marketable condition.
• Security and vacancy protection: security systems, boarding of windows/doors, lock changes, winterization, and routine checks to prevent theft, vandalism, or weather damage.
• Ordinary repairs and maintenance: plumbing, heating, roof patching, pest remediation, mold mitigation, cleaning, lawn care, snow removal, and similar work needed to keep the property safe and marketable.
• Emergency repairs: repairs required to stop ongoing damage (e.g., burst pipe, broken furnace) that cannot wait for court approval.
• Reasonable contractor and subcontractor fees: payments to contractors for work that is necessary and cost‑effective to preserve value.
• Appraisals and inspections: professional appraisers, home inspectors, septic and well inspections needed to set a list price and responsibly market the property.
• Real estate brokerage and marketing costs: broker commissions, advertising, signage, staging and showing costs—these are usual sale expenses and often paid out of sale proceeds; court approval may be required for commission rates that differ from market norms.
• Closing costs attributable to sale: title fees, recording fees, prorations, and other ordinary closing costs associated with selling the property.
• Legal and accounting fees related to administration of the property: fees reasonably necessary to administer the estate, prepare required accounts, or obtain court instructions.
• Storage, moving and disposal of household goods: costs to secure, move, or store personal property that affects the saleability of the real estate.

Contrast: Major capital improvements (for example, building an addition or complete remodel intended to substantially increase resale value beyond reasonable preservation) are treated differently. Such work may still be appropriate, but it should be approved in advance by the beneficiaries or the probate court. Otherwise you risk being held personally liable for unnecessary expenditures.

Authority and procedure under Rhode Island law

Rhode Island probate law gives fiduciaries powers and duties to manage estate property and to pay necessary expenses of administration. For statutory background on probate administration, see R.I. General Laws, Title 33 (Probate Courts): https://www.rilegislature.gov/Statutes/. In practice you will document expenses and present them in interim accountings or in the final account filed with the probate court. The court may allow or disallow requested reimbursements. If beneficiaries consent in writing to a particular expenditure beforehand, that consent strengthens a reimbursement claim.

How to document expenses and preserve your reimbursement rights

1. Create an estate bank account: deposit estate receipts and pay estate expenses from this account so you avoid mixing personal funds with estate funds.
2. Keep receipts and invoices: retain detailed receipts, paid invoices, canceled checks, and credit card statements for every expense.
3. Maintain a running log: record date, vendor, service performed, cost, why the expense was necessary, and the beneficiary approval (if any).
4. Take photos: before/after photos of damage, repairs, and condition of the property help show necessity and reasonableness.
5. Get written bids for major work: obtain multiple quotes for larger repairs so the court or beneficiaries can evaluate reasonableness.
6. Seek advance beneficiary or court approval for large expenses: for significant repairs or improvements, obtain either beneficiary consent in writing or a court order authorizing the expense.
7. Include expenses in accountings: present all claimed expenses in your interim or final account filed with probate and attach supporting documentation.

What if beneficiaries object or estate funds are low?

If beneficiaries object, the probate court resolves disagreements. The court will weigh necessity, reasonableness, alternatives, and whether the fiduciary acted in good faith. If estate funds are insufficient to cover necessary costs (mortgage, taxes, emergency repairs), you may ask the court for instructions or permission to sell the property quickly, obtain a short‑term loan for the estate, or seek an order authorizing the use of personal funds with a promise of reimbursement. Do not spend personal funds expecting automatic reimbursement without court approval if the cost is substantial.

Practical example (hypothetical)

Suppose you are the executor for a Rhode Island estate that includes a vacant house. You discover a roof leak, a broken furnace, unpaid property taxes, and an expired homeowner’s insurance policy. Reasonable steps to protect the property would include immediately securing a temporary roof patch or tarp, repairing or replacing the furnace if necessary to prevent water freezing and pipe damage, renewing insurance, paying current property taxes to avoid a lien, and hiring a firm to winterize the plumbing. You should obtain receipts, take photos, and either notify beneficiaries or petition the probate court for approval if the combined cost is large. These reasonable and necessary expenses are typically reimbursable from estate funds.

Helpful hints

• Open a separate estate checking account to track income and outgoings.
• Keep a digital folder of all bills, receipts, photos, and contractor bids.
• When possible, get beneficiary consent in writing for non‑routine expenses.
• Obtain multiple bids for significant repairs; keep the lowest reasonable bid unless there is a good reason to choose another vendor.
• For emergency repairs, act promptly but document why the emergency required immediate action.
• Ask the probate court for instructions before committing to large expenditures if estate liquidity is uncertain.
• Preserve evidence of efforts to mitigate costs (e.g., seeking free estimates or temporary fixes rather than full replacements when appropriate).
• Consult a probate attorney early if questions arise or if beneficiaries refuse to consent to necessary expenditures.

Where to look in Rhode Island law

Rhode Island statutes that govern probate administration are found in Title 33 (Probate Courts). For statutory language and related rules, see the Rhode Island General Laws and the probate court’s local procedures: Rhode Island General Laws (Statutes). For court rules and filing procedures, visit the Rhode Island Judiciary site: https://www.courts.ri.gov/.

Final note and disclaimer

This article explains common practice under Rhode Island probate administration but does not give legal advice. Rules and court practices can vary with circumstances. If you administer an estate and face significant decisions or disputed claims, consult a licensed Rhode Island probate attorney for advice tailored to your situation.