Probate Q&A Series

Can she claim reimbursement for home improvements and other estate expenses if the will is overturned? – North Carolina

Short Answer

Yes—under North Carolina law, necessary and reasonable expenses of administering the estate can be reimbursed even if the will is later set aside. While a caveat is pending, the personal representative may not distribute assets, but may pay certain items (taxes, liens, pre‑death bills, timely claims, and professional fees) after filing a notice and obtaining the Clerk’s approval. Voluntary improvements or nonessential upgrades—especially to real estate—are unlikely to be reimbursed unless authorized in advance.

Understanding the Problem

You want to know: in North Carolina, can the named executor/beneficiary get paid back for money spent on the home and other estate costs if a will contest succeeds? Here, the will is under a caveat, the matter is in court, and the home includes a life estate that cannot be sold while the contest is pending.

Apply the Law

North Carolina treats reimbursement as part of “expenses of administration,” which are payable from estate assets in the correct order and with the Clerk of Superior Court’s oversight. During a caveat, the personal representative cannot distribute assets but may preserve estate property and, with prior notice to all caveat parties, pay limited categories of expenses. Requests for reimbursement of out‑of‑pocket payments are handled as creditor claims with strict timing rules. The main forum for these approvals is the Clerk of Superior Court in the county where the estate is pending.

Key Requirements

  • Acting authority: The person seeking reimbursement must have acted as the qualified personal representative (or submit a creditor claim) and the expense must relate to preserving or administering the estate.
  • Allowed payments during caveat: While the contest is pending, only specific items may be paid from estate funds—taxes, funeral costs, debts secured by liens, pre‑death bills, timely filed claims, and necessary professional fees—after notice to all parties and Clerk approval.
  • Real property caution: Paying for upkeep or improvements to real estate after death typically requires authorization by the will or a prior order from the Clerk; necessary preservation is treated differently from upgrades.
  • Claims timing: If you paid out‑of‑pocket, present a written claim within the required window; claims arising after death generally must be presented within six months after the claim arises.
  • Priority of payment: Approved administration expenses are top priority when the estate pays claims, subject to solvency and the Clerk’s oversight.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Because a caveat is pending, the executor cannot distribute assets but may preserve estate property and seek approval to pay limited expenses after giving formal notice. If the executor or family already paid items like property taxes or insurance to protect the home, they can present a creditor claim within six months after payment. “Home improvements” that go beyond necessary preservation are unlikely to be reimbursed without a prior order from the Clerk; necessary repairs approved by the Clerk are more likely to be allowed. If the will is overturned, approved administration expenses still rank first for payment.

Process & Timing

  1. Who files: The personal representative. Where: Clerk of Superior Court in the North Carolina county where the estate is pending. What: Notice of Intent to Pay (identifying each bill and basis), served on all caveat parties per Rule 4. When: Before paying from estate funds; parties have 10 days to object.
  2. If there is an objection, the Clerk holds a hearing and may approve, deny, or defer payment until the caveat is resolved. If no objection, the Clerk may approve without a hearing.
  3. If the executor or a helper already paid out of pocket, file a written creditor claim with the PR or Clerk stating amount, basis, and contact information. Present within six months after the expense arises; if rejected, litigation deadlines apply.

Exceptions & Pitfalls

  • “Improvements” vs. preservation: Necessary repairs that protect value differ from elective upgrades. Get Clerk authorization before paying estate funds for real property work.
  • Skipping notice: Paying from estate funds during a caveat without filing and serving the required notice risks disallowance.
  • Life estate complications: Some ongoing costs may belong to the life tenant rather than the estate; clarify roles before spending.
  • Commingling: Keep receipts and pay from an estate account when possible; if you advance funds personally, document and submit a timely claim.
  • Attorney’s fees: The court may allow reasonable administration and, in caveats, certain litigation fees to be paid from the estate, but this is discretionary and can impact solvency.

Conclusion

In North Carolina, reimbursement is available for necessary and reasonable administration expenses even if the will is later set aside. During a caveat, you cannot distribute assets, but you may pay limited items after filing a Notice of Intent to Pay and obtaining the Clerk’s approval. For any out‑of‑pocket payments, present a written claim promptly—generally within six months after the expense arises—and keep detailed proof. The next step is to file the notice or claim with the Clerk of Superior Court.

Talk to a Probate Attorney

If you’re dealing with reimbursement questions during a will contest and work done on estate property, 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.