Using Estate Sale Proceeds for Cleanup and Junk Removal in South Carolina

Detailed Answer — How this works under South Carolina law

When someone dies, assets that belonged to the decedent become part of the decedent’s estate. A properly appointed personal representative (executor or administrator) controls estate assets during probate and must manage them to pay valid debts and the costs of administering the estate. Proceeds from the sale of estate property (including sales of personal items or bulk estate cleanouts) are estate funds. The representative may use those funds to pay reasonable expenses that are necessary to preserve estate value, to prepare property for sale, or to get the estate ready for distribution.

South Carolina’s Probate Code governs the powers and duties of the personal representative and the administration of estates. See South Carolina Code of Laws, Title 62 (Probate Code): https://www.scstatehouse.gov/code/title62.php. That body of law gives the personal representative authority and sets duties and priorities for payment of debts and administrative expenses.

Key practical rules to follow

• The representative must be legally appointed before acting. If no personal representative exists, family members should not spend estate money or use sale proceeds for cleanup.
• Sale proceeds belong to the estate. Use those proceeds only to pay valid estate obligations — including reasonable costs to preserve or prepare assets for distribution (e.g., junk removal, cleaning, storage, appraisals, advertising and reasonable disposal costs).
• Keep detailed records. Save receipts, invoices, photos, estimates, and an inventory that shows what was sold, what was removed, and why the expense was necessary. These items belong in the estate file and will appear on the final accounting to the court and beneficiaries.
• Obtain court approval when appropriate. For routine, ordinary expenses the personal representative can usually act without advance court permission. For large or unusual expenses, or if beneficiaries object, ask the probate court for approval to avoid disputes or later surcharge claims.
• Follow payment priority. Administrative expenses (including costs to preserve and sell assets) have priority over distributions to beneficiaries. If the estate is insolvent, the representative must follow statutory priority rules for creditor claims and administrative costs under the Probate Code.
• Avoid conflicts of interest and self-dealing. The personal representative should not divert proceeds for personal use or hire relatives without disclosing the relationship and obtaining approval where necessary.

Hypothetical example

Mary dies owning a house that contains years of accumulated personal items. The appointed personal representative arranges a junk-removal service for $2,000 and sells household items at an estate sale that brings in $1,200. The proceeds and any remaining cash from the estate can be used to pay the $2,000 bill, provided the representative documents the necessity of cleanup and retains receipts. If beneficiaries later question the charge, the representative will show the court the invoices, estimates, and an inventory proving the work was reasonable and necessary.

When to involve the court or an attorney

• If the cost is large relative to estate value or if beneficiaries disagree, move promptly to get a court order authorizing the expenditure.
• If the estate may be insolvent, consult a probate attorney before paying nonessential expenses; the representative must follow claim-priority rules and protect creditors’ rights.
• If no representative has been appointed, do not spend sale proceeds. Wait for appointment or seek court instructions to avoid personal liability.

For the governing statutes and further guidance see South Carolina Code of Laws, Title 62 — Probate Code: https://www.scstatehouse.gov/code/title62.php. That collection explains the duties of personal representatives, accounting requirements, and the order in which estate obligations are paid.

Helpful Hints

• Confirm who the personal representative is before authorizing any cleanout or sale.
• Open a separate estate bank account for sale proceeds and payments; do not commingle estate funds with personal funds.
• Get at least two written estimates for junk removal, cleanouts, or storage so the court and beneficiaries can see the costs were reasonable.
• Document what was removed and what was sold. Take dated photos before and after cleanup and keep a written inventory.
• Keep all receipts and include expenses in the estate accounting filed with probate court.
• If beneficiaries object to expenses, consider asking the probate court to approve the actions retroactively to reduce risk of personal liability for the representative.
• When in doubt, contact a probate attorney to confirm whether an expenditure needs prior court approval and to help prepare a clear accounting.