Detailed answer — how this works under Tennessee probate law

Short answer: yes — sale proceeds from estate property are estate funds and may generally be used to pay reasonable and necessary estate administration expenses, including junk removal, cleaning, and removal of personal property, but you must follow the probate process, the priority rules for paying claims, and any court or will limitations.

Why sale proceeds belong to the estate

When a personal representative (executor or administrator) sells estate property, the money received becomes an asset of the estate. The personal representative holds those funds on behalf of the estate to pay the decedent’s debts, administration expenses, taxes (if any), and distributions to beneficiaries in the order required by Tennessee law. These duties are set out in Tennessee’s probate statutes (see Tennessee Code Annotated, Title 30).

Official Tennessee Code (Title 30 — Probate) overview: https://www.capitol.tn.gov/legislation/titles/30.html.

Which expenses can be paid from sale proceeds?

• Reasonable and necessary costs of administering the estate: cleaning, junk removal, hauling away personal property, minor repairs required to sell the property, utilities to keep the home safe until sale, locksmiths, and similar costs.
• Costs to prepare the property for sale or to preserve its value (staging, security, mowing, pest control) so long as they are reasonable and documented.
• Broker commissions, closing costs, and other ordinary costs of sale may also be paid from sale proceeds.

Timing and court approval

How strictly you must document or get court approval depends on circumstances:

• If the personal representative is appointed and acting under the authority of the will or probate order, they generally may pay ordinary administration expenses from estate funds as they arise, keeping itemized records.
• If an expense is large, unusual, or disputed by beneficiaries/creditors, the personal representative should seek court approval (a petition to the probate court) before paying. That protects the representative from later claims of improper spending.
• If there is no appointed representative yet, third parties should not assume they can use or dispose of estate funds without written authorization or court approval.

Priority when estate funds are limited

If the estate is insolvent (debts and expenses exceed assets), Tennessee law requires certain priorities for payment. Administration expenses, funeral expenses, and creditor claims are typically paid before distributions to beneficiaries. Do not distribute money to beneficiaries until creditor and administration obligations are satisfied. Consult the Tennessee probate statutes (Title 30) and the probate court for ordering when funds are limited.

Special issues to watch for

• If the will or a court order limits the representative’s powers (for example, requires sale proceeds to be held or restricted), follow those directions.
• If property is sold before appointment of a representative or without authority, the sale and use of proceeds may be set aside by the court.
• Keep detailed receipts, bids, invoices, before-and-after photos, and a contemporaneous log of work performed and payments made — these are essential to show that expenses were reasonable and necessary.
• Liability for contractor claims: make sure vendors are paid through the estate properly; mechanics’ lien or contractor disputes can complicate closing and use of proceeds.

Where to find Tennessee rules and local help

For statutory text and more detail on duties of personal representatives, review Tennessee Code Annotated, Title 30 (Probate): https://www.capitol.tn.gov/legislation/titles/30.html.

For practical probate guidance and local court contacts, see the Tennessee courts site: https://www.tncourts.gov/.

Helpful hints — practical steps when using sale proceeds for cleanup and removal

• Get written authority: if you are the named personal representative, open probate promptly and obtain letters testamentary or letters of administration from the probate court before spending estate funds.
• Document everything: collect written bids, invoices, receipts, photographs of property condition, and a log of work done and payments made.
• Compare bids: obtain multiple bids for junk removal, cleanup, and repairs so the court and beneficiaries can see the costs were reasonable.
• Seek court approval for large or disputed expenses: when in doubt, file a short petition for approval to protect yourself from later claims.
• Pay priority obligations first: funeral bills, ongoing maintenance to avoid property damage, and creditor claims should be handled before discretionary distributions to beneficiaries.
• Communicate with beneficiaries: give notice of significant proposed expenses and provide copies of bids/receipts so beneficiaries understand and — ideally — consent to the spending.
• Watch for liens: ensure vendors do not file liens that could reduce sale proceeds; pay or resolve potential lien claims at closing if possible.
• Consider a preservation escrow: if immediate cleanup is needed and sale is waited for, ask the court whether funds can be held in a short-term escrow for approved expenses.
• Consult a Tennessee probate attorney early if the estate is complex, contested, or likely insolvent. Legal guidance reduces risk of personal liability for the personal representative.