Short Answer

In North Carolina, a personal representative can be reimbursed for necessary and reasonable expenses of administering the estate if the Clerk of Superior Court approves them. Submit detailed receipts with your next account (or a separate petition) and show the expenses preserved or benefitted estate assets. If the house is not yet an estate asset (for example, it passed to you by survivorship), the Clerk may deny reimbursement unless the court first subjects it to estate debts.

Understanding the Problem

You are the North Carolina personal representative asking whether you can be reimbursed for home-related bills you paid. You want relief in the form of repayment from estate funds. One key fact: a substantial Medicaid claim has been filed in the estate.

Apply the Law

North Carolina law allows reimbursement of necessary, reasonable expenses incurred to administer and protect estate assets, subject to approval by the Clerk of Superior Court. Real property usually passes at death to heirs or devisees and is not an estate asset unless a will or court order brings it under the estate’s control. Paying to maintain or improve real estate the estate does not control typically is not reimbursable without prior court authorization. Administration expenses, once approved, are “first‑class” claims paid before most other debts. You must document each expense with vouchers and seek approval in an interim or final account, or by a motion/petition if you need payment sooner.

Key Requirements

• Qualified fiduciary: You are the duly appointed personal representative filing an account or petition with the Clerk of Superior Court.
• Necessary and reasonable: The expense must be reasonably necessary to administer the estate or preserve estate assets (e.g., insurance to avoid loss, safety‑related repairs), not upgrades or personal improvements.
• Estate property nexus: The cost must relate to estate assets. If the home passed by survivorship and has not been subjected to estate debts, obtain court authority first; otherwise reimbursement may be denied.
• Proof (vouchers): Provide itemized receipts, invoices, and proof of payment for each disbursement in your account or petition.
• Clerk approval before paying yourself: Do not self‑pay from estate funds until the Clerk approves the reimbursement (by order or upon account audit).
• Priority and solvency: Approved administration expenses are paid before most other claims, but you must still respect the statutory order of payment if the estate is insolvent.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-23-3 (Compensation; necessary charges) – Clerk may allow reasonable sums for necessary charges and disbursements incurred in managing the estate.
• North Carolina Gen. Stat. § 28A-19-6 (Order of payment of claims) – Sets the priority of claims; costs and expenses of administration come first.
• North Carolina Gen. Stat. § 28A-17-1 (Sale of real property to create assets) – Special proceeding to sell real property to pay estate debts when needed.
• North Carolina Gen. Stat. § 108A-70.5 (Medicaid estate recovery) – Authorizes recovery of certain Medicaid benefits from estate assets.

Analysis

Apply the Rule to the Facts: You, as personal representative, can seek reimbursement for utilities, repairs, and mold remediation if they were reasonably necessary to protect an estate asset and you provide vouchers. Because the home passed to you by survivorship, it is not automatically an estate asset; the Clerk may require a special proceeding to subject it to debts before approving home expenses as administration costs. With a Medicaid claim on file and taxes outstanding, the Clerk will expect you to follow the statutory claim priorities and reserve for taxes before disbursing.

Process & Timing

1. Who files: Personal representative. Where: Clerk of Superior Court (Estates Division) in the county where the estate is pending. What: Either (a) list each reimbursement request with vouchers on your next ACCOUNT (AOC‑E‑506), or (b) file a short verified petition/motion seeking interim approval and payment. When: Typically with your next annual or final account; file earlier by petition if you need funds sooner.
2. If the house must be used to pay debts, file a special proceeding to sell real property to create assets and request authority to preserve the property (limited utilities, insurance, safety repairs) during the sale process. Timing varies by county; expect notice to interested parties and, if needed, a brief hearing.
3. After review, the Clerk issues an order approving allowed reimbursements (or approves them when auditing your account). Pay yourself only the approved amount and keep the order for your records.

Exceptions & Pitfalls

• Paying for upkeep of real property the estate does not control (e.g., survivorship property) without court authorization is often non‑reimbursable.
• Improvements versus preservation: cosmetic upgrades are rarely allowed; necessary preservation (e.g., remediation to prevent loss or health hazard) is more likely to be approved.
• Conflict of interest: when you own the property by survivorship, reimbursements are scrutinized; seek court authority before incurring significant costs.
• Priority traps in insolvent estates: administration expenses come first, but you must still honor the statutory order; improper payments can expose you to personal liability.
• Documentation: missing receipts (vouchers) or vague descriptions are common reasons the Clerk reduces or denies reimbursement.

Talk to a Probate Attorney

If you’re dealing with out‑of‑pocket home costs and a Medicaid claim while administering an estate, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at [919-341-7055].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.