Short answer: Yes — a personal representative (executor/administrator) in Colorado may generally use estate sale proceeds to pay reasonable and necessary estate administration expenses such as junk removal, property cleanup, and preparing property for sale. But those payments must be properly authorized, documented, reasonable in amount, and made in accordance with Colorado probate law and any supervision rules the court has imposed.

Why this matters. When real or personal property is sold during probate (for example, a decedent’s house is sold), the money from that sale is estate money. Estate money normally must be used first to pay valid estate debts and administration costs before any distribution to heirs or beneficiaries. Cleanup, junk removal, hauling, and staging costs are commonly treated as administration expenses if they are necessary to preserve the estate or to prepare assets for sale.

How Colorado law treats these expenses

Colorado follows the Uniform Probate Code (Title 15 of the Colorado Revised Statutes) for probate administration. Under those rules, the personal representative has a duty to marshal, preserve, and distribute estate assets and to pay the estate’s debts and reasonable expenses of administration out of estate assets. See Colorado Revised Statutes, Title 15 (Uniform Probate Code) for the statutory framework: Colorado Revised Statutes (Title 15). The Colorado courts also publish forms and guidance for probate procedures: Colorado Judicial Branch — Probate Forms & Information.

Typical rules you must follow

• Authority: The personal representative may pay ordinary and necessary expenses of administration without prior court approval if the estate administration is unsupervised and the expenses are ordinary. If the estate is under supervised administration, or if an expense is unusual or large, the personal representative should get court approval before paying. When in doubt, seek court order.
• Reasonableness and necessity: Costs must be reasonable in amount and necessary to preserve value or prepare property for sale. Example reasonable expenses: cleaning, junk removal to make a house marketable, hauling out trash and abandoned furniture, winterizing, basic repairs that are customary to permit sale. Excessive or unnecessary expenses can be challenged by heirs or creditors.
• Documentation: Keep written contracts, invoices, dated receipts, before-and-after photos, and proof that the work helped preserve or market the property. Good documentation protects the personal representative against later claims by heirs.
• Priority of payment: Administration expenses and valid creditors’ claims are paid before distributions to beneficiaries. The personal representative must include these expenses in the estate accounting provided to the court and to beneficiaries (or in the final distribution if there is no supervision).
• Inventory and accounting: Any property removed or disposed of should be listed in the estate inventory and accounting. High-value items should not be discarded without appraisal or beneficiary agreement; avoid disposing of items that may have collectible or sentimental value until appraised or authorized.
• Vendor contracts: Contracts for services (junk removal, cleanup, demolition) should be entered into in the name of the estate or in the personal representative’s official capacity — not personally — to avoid personal liability.

Common scenarios and practical guidance

Here are a few examples to illustrate proper and improper uses of sale proceeds for cleanup and removal:

1. Proper use (typical): A decedent’s house needs junk removal and cleaning before it can be marketed. The personal representative gets two written estimates, hires a licensed company, pays $1,800 from the estate’s sale proceeds, keeps receipts, and lists the expense in the estate accounting. This is usually allowed.
2. When court approval is advisable: The estimated cleanup and minor repairs will cost $25,000 (a large expense relative to the estate). The personal representative should petition the probate court to approve the expenditure to avoid later objections.
3. Improper use: The personal representative sells estate items and uses the proceeds to pay for personal living expenses or for non-estate-related services without documentation. That is improper and can expose the representative to personal liability.
4. Personal property of uncertain value: Don’t discard items that could be valuable collectors’ items without at least a basic appraisal or beneficiary agreement. Removing such items without authorization can lead to claims against the estate or the representative.

Steps a personal representative should take before using sale proceeds

1. Confirm your authority: Verify your powers in the will or your court appointment and determine whether the estate is supervised or unsupervised.
2. Estimate costs: Obtain multiple written estimates for cleanup, hauling, staging, or repairs.
3. Document necessity: Take photos, get contractor’s notes, and explain how the work preserves value or enables sale.
4. Use estate funds and contracts: Sign contracts in your capacity as personal representative and pay from the estate account.
5. Keep records: Maintain invoices, receipts, checks, and before/after photos. Include these in the estate inventory and final accounting.
6. When large or contested, ask the court: If costs are large or beneficiaries disagree, obtain court approval in advance.

What beneficiaries or heirs should watch for

• Ask for copies of invoices and the inventory so you can see how estate funds were spent.
• If you suspect wasteful or unauthorized spending, request a formal accounting from the personal representative. If unsatisfied, you may petition the court to review the representative’s actions.
• Agreeing in writing to reasonable cleanup or staging costs can avoid disputes later.

Practical checklist for using sale proceeds to pay cleanup or junk removal

• Open a separate estate bank account and use it for all estate payments.
• Get at least two written estimates for any cleanup, hauling, or repairs over a modest threshold.
• Ask the contractor to state on the bid that the work is to prepare the property for sale.
• Keep before/after photos and receipts; include them in the estate file and accounting.
• If the estate is supervised or the cost is large, file a petition for court approval before paying.
• Do not throw out items that could have value without documenting attempts to appraise or offer them to beneficiaries.

Where to find the law and forms in Colorado

Primary sources and court forms for Colorado probate administration:

• Colorado Revised Statutes — Title 15, Uniform Probate Code: https://leg.colorado.gov/content/revised-statutes
• Colorado Judicial Branch — Probate forms and procedural information: https://www.courts.state.co.us/Forms/Index.cfm?Form_Type_ID=43

When to talk to an attorney

Consult a Colorado probate attorney if any of the following apply:

• The cleanup cost is large compared to the estate value.
• Beneficiaries disagree about disposal or sale of items.
• You are unsure whether the expense is reasonable or necessary.
• The estate is under supervised administration or involves complicated assets.

Reminder / disclaimer: This article explains general Colorado probate principles and common practice; it is educational only and is not legal advice. For advice about a specific estate or to obtain forms or court filings, consult a licensed Colorado probate attorney or the Colorado courts.