Palm Harbor, FL asked in Estate Planning, Probate and Real Estate Law for Florida

Q: How can I be reimbursed for estate and inherited property-related expenses if probate has been closed?

I am the named PR/executor in a will. There are two beneficiaries, myself and a sibling. The terms of the will are that everything is to be split 50/50 and that all estate-related and inherited property-related expenses are to be paid by the estate, not by me only. The will was admitted to probate and summary administration was completed and closed 10 months ago. The agreement to opt-out of formal administration was made by myself and the other beneficiary to expedite things and lower expenses. She agreed to pay me for her half of the inherited-house and other estate expenses (funeral, burial, etc...) but is now refusing to do so. I am out about $50k and she has paid nothing, so she owes me about $25k. Can I have probate reopened and have the court order her to do this? OR alternatively, can I get reimbursed from the sale of the house, which is inherited property and the only thing in the estate. If so (for the latter), how would I go about doing this?

2 Lawyer Answers
James Clifton
PREMIUM
Answered

A: If you've incurred expenses related to the estate and inherited property after probate has been closed, there are pathways to seek reimbursement, either through reopening the probate or directly addressing the division of assets.

If there are discovered assets or if further administration is required for reasons like unresolved debts or expenses, you could file a petition for subsequent administration under Florida Probate Rule 5.460. This petition would need to detail your expenses, the reason for further administration (reimbursement), and any new or overlooked assets. Given your situation, this could potentially include the costs you've fronted for estate-related expenses, arguing these as debts of the estate.

Since the house is the primary asset and was supposed to be split 50/50, you might consider this property as the means for reimbursement. Instead of reopening probate, you could negotiate or legally pursue your sibling for her share of the expenses directly from her inheritance or the proceeds from the house sale. If she refuses to pay or cooperate, you might need to take legal action outside of probate, such as a civil suit for contribution or reimbursement based on the terms of the will and your agreements.

Schedule a free consultation to make sure your expenses are adequately reimbursed.

A: If the summary administration is closed and the order determining homestead status or other order distributing the property out of the estate was already signed by the judge (meaning that the real property is no longer in the estate), and the real property was the only asset, it does not make sense to reopen the estate to try and get reimbursed for your out of pocket expenses because there are no estate assets out of which to make a claim against. However, there is an opportunity to be repaid your out of pocket expenses related either to the expenses of administration or the expenses for the real property at the time of the real estate closing. You would need to itemize your expenses and show proof of payment such as receipts mark paid or canceled checks and provide them both to your sibling and to the title agent handling the closing and ask that these expenses be paid off the top as a seller's cost before the net proceeds of sale are split 50/50. You have leverage, because if your sibling doesn't agree to sign the closing statement with your reimbursements listed, you can hold up the sale.

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