Using Estate Sale Proceeds to Pay for Cleanup, Junk Removal, and Personal Property Disposal

Short answer: Under Virginia’s probate rules, a personal representative (executor or administrator) may use estate funds — including proceeds from a sale of estate property — to pay reasonable and necessary expenses of administration, such as junk removal, cleaning, and disposal of personal property, provided the expenses benefit the estate and follow statutory duties and court supervision when required. See Virginia Code Title 64.2 for governing law: https://law.lis.virginia.gov/vacode/title64.2/.

Detailed answer

Who controls the money? When someone dies, the estate’s assets become subject to administration by the personal representative (PR). The PR has a fiduciary duty to the estate and beneficiaries to collect assets, preserve value, pay debts and taxes, and distribute the remainder according to the will or Virginia intestacy rules. Virginia’s probate law (Title 64.2) sets the framework for these duties and the order in which estate expenses and claims are paid: https://law.lis.virginia.gov/vacode/title64.2/.

Are cleanup and junk-removal expenses allowed? Yes — if the cleanup is a reasonable and necessary expense of administration. Typical examples where payment from estate funds (or sale proceeds) is appropriate include:

Cleaning and repairs required to prepare real estate for sale or to prevent waste or deterioration.
Removal and lawful disposal of hazardous materials, pests, or bulk trash that impede sale or occupation.
Storing, cleaning, and sorting personal property that the estate intends to sell or inventory as part of administration.

These costs are treated as administration expenses and ordinarily are paid before distributions to beneficiaries, subject to the estate’s solvency and priority rules under Virginia law.

When must you get court approval? If the estate is being administered under court supervision (a supervised administration) or if beneficiaries object to a large or unusual expense, court approval is a safe practice. Even in unsupervised (independent) administrations, the PR should act conservatively: document the need, obtain estimates, and, where possible, get beneficiary consent in writing for non-routine or high-cost services. If a dispute arises, the circuit court that oversees probate can clarify whether an expense is reasonable.

What about personal items that beneficiaries claim? Items that clearly belong to named beneficiaries or that the decedent specified in a will generally should not be sold or discarded without the beneficiary’s consent. The PR should inventory personal property, give required notices, and follow statutory procedures for distribution or sale. Selling or disposing of property that a beneficiary later proves belonged to them can lead to claims against the PR.

Insolvent estates and priority of expenses — If the estate lacks sufficient funds, Virginia law sets priorities for payment (administration expenses, funeral costs, taxes, creditor claims, then distributions). The PR must follow those priorities. When funds are limited, nonessential expenses like optional upgrades or luxury repairs should be avoided.

Practical example (hypothetical): A decedent’s house contains years of accumulated junk and several tons of waste that block access, lower market value, and create health hazards. The PR hires a licensed junk-removal company, obtains three bids, documents the problem with photos, and uses sale proceeds (held in the estate bank account or escrow) to pay the bill after sale closing. The PR keeps receipts and includes the expense in the estate accounting. If a beneficiary objects, the PR shows the court the bids, receipts, and photos to justify the expense.

How to proceed step-by-step

Open and use a separate estate bank account; do not commingle personal funds.
Document the problem thoroughly: photos, written descriptions, and estimates from at least two vendors.
Obtain written bids and invoices that describe exactly what work was performed.
Keep all receipts and include these expenses in the estate accounting provided to beneficiaries or the court.
If the expense is large, unusual, or a beneficiary objects, petition the probate court for approval.
When selling estate property, consider holding proceeds in escrow or the estate account until administrative expenses, liens, and known claims are satisfied.

When to consult a probate attorney in Virginia

If beneficiaries dispute disposal or sale of personal property.
If the expense is large relative to the estate’s value or the estate may be insolvent.
If you manage an estate under court supervision or are unsure whether an expense is “necessary and reasonable.”
If there are potential environmental, hazardous-material, or municipal-code issues with disposal or cleanup.

For general statutory guidance on estate administration in Virginia, consult Title 64.2 of the Virginia Code: https://law.lis.virginia.gov/vacode/title64.2/. For procedural information from the courts, see the Virginia Judicial System probate information: https://www.vacourts.gov/courts/circuit/probate.html.

Disclaimer: This article explains general Virginia law and common practices. It is educational only and not legal advice. For advice on a specific probate situation, consult a licensed Virginia probate attorney.

Helpful Hints

Keep meticulous records: photos, bids, contracts, invoices, and canceled checks.
Get at least two written bids for any cleanup or removal over a modest amount.
Use the estate’s bank account for payments; document transfers and keep funds in escrow if appropriate.
Notify beneficiaries early when the estate requires cleanup or disposal of property to reduce disputes.
Avoid disposing of items that could be the subject of a will gift or known beneficiary claim until distribution is clear.
If hazardous materials or code violations exist, hire licensed professionals and confirm disposal complies with local law.
If the estate faces potential insolvency, prioritize statutory-required payments and consult counsel before spending sale proceeds.