Detailed Answer
Short answer: Yes — money received from selling estate property is estate money and can generally be used to pay necessary and reasonable administration expenses, including junk removal and cleanup of personal property, so long as the payments follow Nevada probate rules, the personal representative acts in the estate’s best interest, and the costs are documented. However, some sales or large expenses may require court authorization or beneficiary/creditor notice.
How this works under Nevada law (plain-language explanation)
When a person dies, their assets (including cash from a sale of estate property) become estate assets under the control of the personal representative (executor or administrator). The personal representative has a fiduciary duty to preserve estate assets and to pay the estate’s valid expenses and debts before distributing inheritances. Typical administration expenses include funeral costs, taxes, maintenance, repairs, and reasonable costs to prepare property for sale — which often covers junk removal and personal-property cleanup when those tasks are necessary to make the property marketable or to prevent waste.
Because the personal representative holds and spends estate funds on behalf of the estate and beneficiaries, they must:
- Spend only on legitimate estate needs;
- Keep clear records and receipts;
- Avoid self-dealing (for example, hiring their own company without disclosure or court approval); and
- Get court approval when Nevada law or the court requires it (for major transactions or if beneficiaries object).
Common practical rules that apply in Nevada
- Sale proceeds are estate assets. Proceeds from selling real property, vehicles, or personal property become part of the estate’s funds and can be used to pay administration expenses.
- Reasonableness and necessity matter. Cleaning, hauling junk, and removing personal property that blocks sale or damages the home are commonly seen as reasonable. Cosmetic improvements or personal projects that increase value marginally may be questioned.
- Priority of payments. Estate administration expenses and creditors’ claims generally must be paid before distributions to beneficiaries. If the estate is insolvent, the personal representative must follow Nevada’s priority rules for creditor claims.
- Court supervision. Nevada courts supervise probate. If the sale or the proposed expenses are large, contested, or outside routine administration, the personal representative should get court authority first or obtain written consent from beneficiaries to avoid later disputes or personal liability.
When you should get court approval or beneficiaries’ consent
Get court approval (or signed written consent from beneficiaries) before spending estate funds when:
- The expense is large relative to the estate size;
- The expense is unusual (for example, a multi-thousand dollar cleanup or large demolition);
- There is disagreement among beneficiaries about selling property or paying cleanup costs; or
- The personal representative has a conflict of interest (for example, intends to hire a business they own).
Practical steps to follow — a checklist
- Confirm you are the personal representative. Only the appointed personal representative has authority to use estate funds for administration costs.
- Document the condition and necessity. Take photos, write descriptions, and obtain written estimates for junk removal, cleanup, or storage.
- Get multiple bids for substantial services. Use competitive bids to establish reasonableness.
- Keep receipts and invoices. Maintain a clear accounting of every payment from sale proceeds.
- Notify beneficiaries and creditors as required. Provide proposed expenses to beneficiaries or request court approval if needed.
- If in doubt, file a petition with the probate court to authorize the sale or specific expense. A court order removes most uncertainty and protects the personal representative from claims of improper conduct.
Hypothetical illustration
Imagine an estate in Las Vegas where the decedent owned a house full of old furniture and trash. The house sells for $200,000. The personal representative hires a licensed junk-removal company for $3,000 and pays $500 to have personal items boxed and stored. These costs were documented with photos, two written estimates, and receipts, and the beneficiaries were notified. Those cleanup costs are reasonable estate administration expenses and would ordinarily be paid from the sale proceeds before distributing the net sale proceeds to beneficiaries.
What if you’re dealing with a small estate or nonprobate transfers?
Nevada has simplified procedures for small estates and some assets pass outside probate (for example, joint tenancy property or accounts with payable-on-death designations). If the property in question is not part of probate, sale proceeds may not be estate funds and you should confirm the ownership and transfer method before spending funds. For probate matters and how to start probate in Nevada, the Nevada Courts self-help resources are a good place to begin: https://nvcourts.gov/Self_Help/Probate/.
Where to find Nevada statutes and official guidance
For official Nevada statutes and to research Nevada law, visit the Nevada Revised Statutes index: https://www.leg.state.nv.us/NRS/. For practical probate forms and court processes, see the Nevada Courts probate self-help pages: https://nvcourts.gov/Self_Help/Probate/.
When you should consult an attorney
Talk to a probate attorney if any of the following apply:
- Large or disputed expenses (so you can get court authorization);
- Possible conflicts between beneficiaries;
- Uncertainty whether funds are part of the probate estate; or
- You worry about personal liability as the personal representative.
Disclaimer: This article explains general Nevada probate concepts and common practices. It is educational only and does not constitute legal advice. For advice about a specific situation, consult a licensed Nevada probate attorney.
Helpful Hints
- Always get written bids and keep invoices. Clear documentation protects the personal representative and the estate.
- Obtain before-and-after photos showing why cleanup was needed.
- Ask beneficiaries for written consent for routine cleanup to avoid court involvement where possible.
- For larger expenses, file a petition to authorize payment; a court order reduces later disputes.
- Don’t mix estate funds with your personal funds. Use a separate estate bank account for proceeds and payments.
- Check whether the property is part of probate. Nonprobate property follows different rules and may not be available to pay estate obligations.
- If you are the personal representative and plan to hire a company you own or a friend’s company, fully disclose the relationship and get court approval if there’s any question of conflict.
- When in doubt, consult a Nevada probate attorney early — it can prevent costly mistakes and personal liability later.