Delaware — Tracking and Reimbursing Expenses to Maintain Estate Property Before Sale

Quick note: This is educational information only and not legal advice. For guidance specific to your estate, consult a Delaware probate attorney.

Who pays estate maintenance costs and how reimbursement works

When someone dies, the personal representative (executor or administrator) manages the decedent’s assets until debts are paid and assets are distributed. In Delaware, the estate — not the personal representative personally — generally pays reasonable and necessary expenses incurred to preserve estate property. The representative may advance money personally and later seek reimbursement from estate funds when they are available.

Delaware law governing decedents’ estates and fiduciary responsibilities is found in Title 12 of the Delaware Code. See: Delaware Code, Title 12 — Decedents’ Estates and Fiduciary Matters.

Common types of reimbursable expenses for maintaining estate property

Executors may typically seek reimbursement from the estate for expenses that are reasonable, necessary, and incurred in the ordinary care and preservation of estate property. Common categories include:

• Insurance premiums — hazard, homeowner, flood, and liability insurance to protect the property during administration.
• Property taxes and municipal assessments — to avoid liens or penalties that reduce estate value.
• Mortgage payments and secured loan payments — to prevent foreclosure on estate real property.
• Utilities and regular services — water, electric, gas, trash, and sewer to keep the property safe and marketable.
• Routine maintenance and minor repairs — lawn care, winterization, roof patching, plumbing or electrical repairs necessary to avoid further damage.
• Necessary major repairs — emergency repairs to prevent imminent loss (for example, stop major water intrusion). For large or discretionary repairs, court approval or beneficiary consent is prudent.
• Property management and caretaker fees — if a manager or caretaker is needed to preserve value while the property is marketed.
• Appraisal, inspection, and environmental assessment costs — to determine value and discover issues that affect saleability.
• Marketing and sale-related expenses — real estate broker commissions, advertising, staging costs, and reasonable costs necessary to sell the property.
• Closing costs and escrow fees — ordinary closing costs required to transfer title on sale.
• Legal and accounting fees — reasonable fees for administering the estate and preparing required accountings.

What is not typically reimbursable

• Unreasonable or unnecessary improvements that unduly shift benefit to a particular beneficiary (for example, luxury renovations done without approval).
• Personal expenses of the representative that are unrelated to estate administration.
• Expenses incurred after final distribution unless previously authorized or part of formal accounting adjustments.

When you should get court or beneficiary authorization

Delaware personal representatives should obtain beneficiary consent or a probate-court order before incurring significant or non-emergency expenditures (e.g., major renovations, long-term lease agreements, or a high-cost marketing campaign). If beneficiaries disagree about significant expenditures, seek court instructions or authorization to avoid personal liability.

Practical steps to document and secure reimbursement

1. Open a separate estate bank account and deposit estate receipts there. Do not commingle personal funds with estate funds.
2. Track every expense with invoices, receipts, cancelled checks, or vendor statements. Note the date, purpose, and payee for each item.
3. Classify expenses (maintenance, taxes, insurance, sale costs, professional fees) so the final accounting is clear for beneficiaries and the court.
4. If you pay out-of-pocket, keep clear records of the advance and request prompt reimbursement from the estate once funds are available.
5. When in doubt about whether an expense is necessary or reasonable, get written approval from beneficiaries or ask the probate court for direction.

Priority if the estate has limited funds

If estate assets are insufficient to pay all obligations, Delaware priority and claims rules determine which creditors are paid first. Generally, funeral expenses, secured creditors, and administration costs (including reasonable expenses to preserve estate property) are high priority, but the exact ordering depends on the facts. Consult Title 12 for the statutory framework: https://delcode.delaware.gov/title12/.

When to hire a lawyer

Consider retaining a Delaware probate lawyer when:

• Planned expenditures are large, contested, or could materially affect distributions.
• The estate may be insolvent or there are complex creditor claims.
• Beneficiaries disagree about protecting, selling, or improving estate property.
• Specialized issues arise (environmental remediation, title defects, or contested will matters).