Detailed Answer
Short version: Yes — when property is sold as part of a Texas probate estate, the sale proceeds generally become estate assets and may be used to pay reasonable administration expenses, including junk removal and personal-property cleanup, provided the sale and the payments are authorized by the personal representative or by the court. If no authorized representative has authority and you dispose of or spend estate property or proceeds on your own, you risk personal liability.
How this works under Texas law
When a person dies, their assets become part of the probate estate (unless they pass outside probate — e.g., by beneficiary designation, joint tenancy, or living trust). The personal representative (executor or administrator) is the court-appointed person who gathers assets, pays debts and expenses, and distributes what remains to heirs or beneficiaries. Money from a lawful sale of estate property becomes estate funds and can be used to pay valid estate expenses.
Texas allows independent administration in many cases, which gives the personal representative broader authority to manage and sell estate assets without constant court approval. See the Texas Estates Code on independent administration for the rules that apply: Tex. Estates Code, Ch. 401 (Independent Administration). Whether administration is independent or supervised affects how and when sales and expense payments occur.
What counts as an allowable estate expense?
- Expenses that are ordinary, necessary, and reasonably related to protecting, preserving or preparing estate assets for sale — for example, securing a vacant house, removing debris, hauling away junk, cleaning out personal property so the property can be marketed or sold.
- Costs to comply with local laws or health and safety requirements (e.g., abating hazardous materials before sale).
- Costs to appraise, repair or advertise estate property when those costs are reasonable and documented.
Steps to make sure sale proceeds can be used properly
- Confirm who is the personal representative. Only an appointed personal representative (or an heir acting under a small-estate procedure) has authority to administer estate assets.
- Check whether the estate is being administered independently. Independent administration often allows the personal representative to sell assets and pay expenses without prior court approval. See Tex. Estates Code, Ch. 401.
- Document everything: keep invoices, receipts, before/after photos, and a written explanation tying the expense to protecting or preparing an asset for sale.
- If the representative is unsure whether a specific expense is allowable, get a court order authorizing the sale or the expense. A court order prevents later disputes with heirs or creditors.
What if there is no personal representative or you are an heir who sold property?
If no one has been appointed, or if an heir sells or removes property without authority, the sale proceeds may not automatically be free to use for estate expenses. An unauthorized sale could create personal liability — the buyer or seller could be required to account to the estate, return proceeds, or face creditor claims. Texas provides streamlined procedures for small estates in certain circumstances, but you should follow the proper procedure before using or distributing proceeds.
Priority of payment and creditor claims
Estate administration expenses and certain taxes generally get priority over distributions to heirs. Secured creditors (for example, a mortgage) are paid from proceeds tied to the encumbered property. Unsecured creditors have timelines to present claims. Proper administration and documentation protect the personal representative from claims and help ensure that expenses paid from proceeds are recognized as valid estate obligations.
When to get help
Get a probate attorney’s help if:
- The estate holds significant assets or debts.
- Heirs disagree about selling property or paying expenses.
- There’s no appointed representative and someone wants to clean out or sell property.
Helpful Hints
- Always confirm authority before selling estate assets or spending sale proceeds. Ask to see letters testamentary or letters of administration.
- Keep receipts, photos and a short memo explaining why each cleanup or removal was necessary to protect the estate.
- If in doubt, ask the court for an order permitting the sale or authorizing payment of specific expenses — it is inexpensive relative to the risk of later disputes.
- Do not commingle estate funds with personal funds. Keep sale proceeds in an estate bank account until properly disbursed.
- Pay secured creditors tied to a specific asset from that asset’s sale proceeds before distributing any remaining funds from that sale.
- If you’re a buyer of decedent property, confirm the seller’s authority and get the seller’s representation in writing to avoid future claims.
- Use the Texas Estates Code resources to learn more about a representative’s powers: Tex. Estates Code, Ch. 401 (Independent Administration).
Practical example (hypothetical)
Imagine a decedent’s house contains years of accumulated items and junk. The personal representative arranges a cleanout before listing the house. The cleanout costs $3,000. The representative sells the house for $150,000. Under proper administration (with authority to sell and pay reasonable expenses), the $3,000 cleanout expense is paid from the estate account created from the sale proceeds as an administration expense, documented with receipts, and reflected in the estate accounting before distribution to heirs.
Disclaimer
This article explains general principles under Texas law but is not legal advice. It does not create an attorney-client relationship. For advice about a specific situation, consult a licensed Texas probate attorney.