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Detailed Answer

Short answer: A personal representative (executor or administrator) may pay reasonable and necessary expenses to preserve, maintain, insure, and prepare estate real property for sale. Common reimbursable items include securing and boarding the property, utilities, insurance, ordinary repairs and maintenance, property taxes and mortgage payments, appraisals and inspections, marketing and broker commissions, and closing costs. Keep detailed receipts and records and get court approval for large or disputed items.

Which expenses are typically reimbursable under Tennessee law?

Under Tennessee probate practice, estate administration expenses that are reasonable and necessary to preserve estate assets are generally paid from estate funds. Typical categories include:

• Security and securing the property: changing locks, boarding windows and doors, installing temporary fencing, paying for security patrols if there is a demonstrable risk of vandalism or theft.
• Utilities and essential services: water, electricity, gas, and septic servicing required to keep the property from suffering damage (e.g., to prevent pipes from freezing).
• Insurance: hazard and liability insurance on the property while it remains in the estate’s control.
• Property taxes and mortgage/loan payments: property tax payments and mortgage payments that the estate is obligated to make to avoid foreclosure or liens.
• Ordinary maintenance and repairs: roof leaks, HVAC repair, pest treatment, lawn care, winterization, and other repairs necessary to prevent deterioration. Routine cleaning and junk removal so the property can be shown or sold are also commonly reimbursable.
• Inspections, appraisals, and professional reports: residential or environmental inspections, professional appraisals, surveys, and other reports needed to market or sell the property.
• Marketing and sale-related costs: realtor fees, staging costs (if reasonable), photography, advertising, title exams, escrow fees, and typical closing costs charged against sale proceeds.
• Storage and moving costs: moving household items out of the property and reasonable storage costs while the estate arranges sale or distribution.

What is not usually reimbursable?

Be cautious about expenses that are likely not reimbursable unless approved by the court or the beneficiaries. These include:

• Major discretionary upgrades or improvements (expensive remodels, luxury upgrades) that increase marketability but are not necessary to preserve value.
• Personal expenses of the representative that are unrelated to estate administration.
• Costs that are excessive or not supported by documentation.

How to get reimbursed — steps and best practices

1. Act as a fiduciary: Tennessee law treats the personal representative as a fiduciary. Act promptly, reasonably, and in the estate’s best interest.
2. Document everything: keep invoices, receipts, contracts, before/after photos, and written explanations of why the expense was necessary. Note dates, vendors, and the reason the expense prevented loss or enabled sale.
3. Seek prior court approval for large or unusual expenses: if an expense is substantial or if beneficiaries object, file a petition in probate court asking the judge to approve the expenditure. A court order protects the representative from later claims.
4. Submit an accounting: most Tennessee probate courts require periodic accounting of estate receipts and disbursements. Reimbursement claims are best included in those accountings.
5. If you pay out of pocket: you may seek reimbursement from estate funds by providing proper documentation and, if necessary, petitioning the court to allow payment.

Priority, sale proceeds, and final payment

Estate administration expenses (including reasonable costs to preserve property and costs of sale) are typically paid from estate assets before distributing money to beneficiaries. Broker commissions and customary closing costs are usually paid from sale proceeds. If the estate lacks sufficient liquid assets to cover necessary expenses, the representative should contact the probate court for guidance before spending money out of pocket.

Where Tennessee law addresses this

Tennessee’s probate statutes and court practice govern the duties of personal representatives, the payment of estate expenses, and the requirement to keep records and get court approval when appropriate. For the statutory framework on probate practice generally, see Tennessee Code, Title 30 (Probate Practice): https://www.capitol.tn.gov/legislation/current/title30.html. If you expect contested reimbursement claims or large expenditures, ask the court to approve them in advance to reduce personal liability.

Practical example (hypothetical)

Imagine you are the executor of an estate that includes a vacant house with a leaking roof, an unpaid property tax bill, and no utilities on. Reasonable reimbursable actions would include boarding broken windows and fixing the leak to prevent further interior damage, paying the property tax to avoid a tax lien, turning on power to prevent mold issues from a broken HVAC system (or winterizing to prevent freezing), getting an appraisal and inspection, and hiring a realtor. An expensive full renovation to increase the sale price would usually need beneficiary agreement or court approval before you incur the cost.

Important note: This article explains common practice and the statutory framework that applies generally in Tennessee. Probate courts can vary in procedure and judges may require prior approval for some actions. When in doubt, petition the probate court or consult a Tennessee probate attorney.

Helpful Hints

• Keep a dedicated folder (digital and physical) for every invoice, contract, photo, and communication related to the property.
• Get written bids for repairs over a modest amount and save them with receipts for the work completed.
• Obtain an appraisal early if you plan to sell; that supports reasonableness of later expenses and price expectations.
• Ask the probate court for interim orders if the estate lacks funds; a written order authorizes payments or reimbursement and limits personal liability.
• Talk to beneficiaries early. If they consent in writing to a reasonable repair or pre-sale expense, this reduces the chance of later disputes.
• Use licensed professionals for inspections and major repairs to avoid disputes over work quality.
• Confirm whether homeowner’s insurance will cover certain losses; file claims where appropriate before spending estate funds.
• Do not commingle estate funds with personal funds. Use an estate bank account for all estate receipts and disbursements.

Disclaimer: This is general information, not legal advice. Laws change and every estate is different. Consult a Tennessee probate attorney or the probate court for advice tailored to your situation.