Short Answer

In North Carolina, a personal representative (PR) may pay and be reimbursed for reasonable, necessary costs to preserve and prepare estate property for sale—but only if the PR has authority under the will or a court order to take possession and manage the property. Typical reimbursable items include insurance, essential utilities, safety and security measures, necessary repairs, cleaning, and standard sale costs. The clerk reviews these disbursements for reasonableness, so keep invoices and include them in the estate accounting. If an heir advances funds, that person generally must file a timely claim with the PR for reimbursement.

How North Carolina Law Applies

North Carolina law requires a PR to preserve estate assets and settle the estate prudently. Real property typically vests in heirs or devisees at death, so the PR should not pay ongoing property expenses unless the will authorizes it or the PR obtains a court order granting possession, custody, and control. Once authorized, the PR may make reasonable, necessary expenditures to protect value (for example, insuring a vacant home, winterizing plumbing, stopping leaks, lawn care for curb appeal, or removing hazards). These charges are treated as administration expenses and may be reimbursed from the estate, subject to clerk review. If a non‑PR (e.g., an heir) pays these costs, they should submit a claim to the PR within the statutory claims period.

Key Requirements

• Authority to act: Before paying for upkeep of real property, confirm the PR’s authority. The will may grant it. If not, the PR should seek a court order to take possession, custody, and control. Without authority, routine upkeep payments risk denial or surcharge.
• What is typically reimbursable: Necessary charges that preserve or market the property, such as:
  • Property insurance (including a vacancy or “vacant dwelling” endorsement when required), taxes, and HOA/POA dues to avoid liens
  • Essential utilities maintained at minimum levels (electricity, water, heat/AC) to prevent damage or enable showings
  • Security and stabilization (locks/rekeying, boarding, alarm service, winterization, debris removal)
  • Urgent or preventative repairs to protect value (roof patch, plumbing leak, safety hazards), pest control, and code‑compliance fixes
  • Reasonable cleaning, yard maintenance, and trash haul‑off
  • Professional services needed for sale (appraisal/CMA, inspection for buyer repairs, locksmith, photography limited to marketing, and broker commissions/closing costs paid at closing)
  • Occupancy control costs when needed (court fees and service costs to obtain possession/eject an occupant)
  • Mortgage payments or reinstatement amounts when cost‑effective to prevent loss before sale (weighing alternatives like abandonment of valueless property)

  Items that go beyond preservation—like non‑essential upgrades or renovations intended to increase resale price—may be denied without prior court approval and beneficiary buy‑in.

• Reasonableness and documentation: The clerk will review whether the expense was necessary and reasonably priced. Keep invoices, proof of payment, photos (before/after for repairs), quotes for larger jobs, and a clear purpose for each disbursement.
• Who gets reimbursed: Ideally, the estate pays directly from its account. If an heir/front‑runner pays out of pocket, that person must submit a claim to the PR; late claims can be barred.

Process & Timing

1. Confirm authority to manage the property: Check the will for authority. If needed, file a petition for an order granting possession, custody, and control of the real property.
2. Stabilize and insure immediately: Secure the premises, switch or maintain critical utilities at minimum levels, and place appropriate insurance coverage for a vacant dwelling.
3. Plan the work: Prioritize preservation and safety first. Get estimates for non‑emergency work; seek court approval for major, non‑routine or value‑adding projects.
4. Pay and track: Use the estate bank account. Keep receipts, invoices, and logs (include vendor, date, purpose, and amount). Avoid cash payments.
5. Account to the clerk: Report all disbursements on the next annual or final account. Expect review for reasonableness and necessity.
6. If an heir paid: Submit a written reimbursement claim to the PR within the claims deadline. The PR evaluates and, if appropriate, pays the claim as an administration expense.
7. At sale: Standard brokerage commissions and closing costs are typically paid at closing and reflected on the settlement statement; they are part of normal sale expenses.

What the Statutes Say

• N.C. Gen. Stat. § 28A‑13‑2 (PR’s duty to settle and preserve the estate) — Sets the PR’s overarching duty to act prudently and preserve estate assets.
• N.C. Gen. Stat. § 28A‑13‑3 (PR’s powers, including taking possession of real property and employing professionals) — Authorizes the PR to take possession/control of real property when in the estate’s best interest and to hire needed professionals.
• N.C. Gen. Stat. § 28A‑23‑3 (Allowances for necessary charges and disbursements) — Permits the clerk to allow reasonable sums for necessary estate management expenses and to review reasonableness.
• N.C. Gen. Stat. § 28A‑21‑1 (Accounts) and § 28A‑21‑2 (Auditing accounts) — Require PRs to file accounts and authorize clerk auditing of receipts and disbursements.
• N.C. Gen. Stat. § 28A‑19‑6 (Order of payment of claims) — Gives administration expenses priority of payment.
• N.C. Gen. Stat. § 28A‑14‑1 (Notice to creditors) and § 28A‑19‑3 (Time limits to present claims) — Outline creditor notice and deadlines for submitting reimbursement claims.

Exceptions & Pitfalls

• Paying without authority: If the PR pays ongoing property expenses without will authority or a court order granting possession/control, reimbursement can be denied and the PR may face surcharge.
• Improvements vs. preservation: Cosmetic upgrades (remodels, new appliances, high‑end landscaping) typically are not reimbursed unless approved in advance. Stick to preservation and safety unless you obtain court approval.
• Late or undocumented claims: Heirs who advance funds must present a timely, documented claim; late claims can be barred.
• Insurance gaps: Vacant homes often require special policy endorsements. Failure to adjust coverage can jeopardize reimbursement and risk uncovered loss.
• Occupants and tenants: Use the proper legal process to obtain possession. For tenants, follow landlord‑tenant procedures; for non‑tenant occupants, seek relief in the estate proceeding.
• Underwater or hazardous property: If a property is valueless or harmful to the estate, the PR may consider abandoning it when permitted by law rather than spending estate funds.

Helpful Hints

• Open and use an estate bank account; avoid cash. Keep a running ledger of every expense with receipts and photos.
• Call the insurer immediately to secure vacant‑home coverage; confirm who is the named insured.
• Prioritize safety, leak prevention, and security before cosmetic work. Get at least two quotes for non‑emergency projects.
• Ask the clerk for an order authorizing possession/control and, for larger projects, consider seeking approval before spending.
• If you already paid out‑of‑pocket, submit a written, itemized claim to the PR promptly with proof of payment.

Talk to a Probate Attorney

If you’re managing a North Carolina estate property and need to know which expenses are reimbursable and how to document them, 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.