@josephmarcieadam wrote:
Thank you! The significant expenses of upkeep were seeking reimbursement for wouldn’t , in my estimation, be considered upgrades - there were major plumbing leaks that required the replacement of the main sewer line, and the replacement of a wall in the living room. Also needed to replace basement stairs which had dry rot
An improvement adds value to the property, adapts it to a new use, or extends the useful life of the property or one of its systems. Improvements are distinguished from repairs and maintenance, which keep the property in as-is condition.
Typical improvements are things like new roof or new flooring or new furnace. However, a new sewer line (instead of patching the existing one) would definitely be considered an improvement. A replacement wall (if there were structural defects) and replacement stairs could go either way, depending on the exact situation.
If this is happening in 2025, you should submit a bill to the estate for reimbursement for cost you paid for the benefit of the estate. The estate administrator decides whether or not to pay (yes, there can be conflicts here, which is why estates are sometimes supervised by the courts. And why you should ask for the reimbursement and then get your answer, rather than not asking at all. The attorney can tell you what the process is for getting reimbursed if you are also the administrator approving the reimbursement.)
The reimbursement will not be taxable for repairs, and is probably taxable as a long-term capital gain if it is for an improvement (due to how improvements are handled -- this will also affect the capital gains calculation on the sale of the house). The fiduciary fee is definitely taxable.
Then after the reimbursements are paid, the remaining proceeds are divided.
Unless you already divided the proceeds, in which case it may be impossible as a practical matter to get reimbursed even if you are arguably entitled.
