Detailed Answer
This section explains, under Massachusetts law, how mortgage payments and utility bills are handled while a decedent’s estate is in probate. It uses simple, hypothetical facts so you can see the typical rules and choices available.
Basic rule: the debt and services stay with the property or account — not automatically with heirs
When someone dies, their debts (including mortgage obligations) do not simply disappear. The mortgage remains secured by the real estate. If the mortgage is not paid, the lender can seek foreclosure against the property even while the estate is in probate. Utility accounts remain contracts between the account holder and the utility provider. A utility company can discontinue service for nonpayment unless alternative arrangements are made.
Who is legally responsible while the estate is open?
Until a personal representative (called an executor or administrator) is appointed by the Probate and Family Court, no one has the court-authorized power to act on behalf of the estate. After appointment, the personal representative has the authority and duty to collect assets, protect property, and pay valid debts of the estate. See Chapter 190B (Massachusetts Uniform Probate Code) for an overview of the probate framework: Mass. Gen. Laws ch. 190B.
Practical consequences — mortgage payments
- If the personal representative uses estate funds, they should keep records and pay mortgage payments to preserve the estate asset (the house). This is commonly done to avoid foreclosure and protect value for heirs and creditors.
- If no one pays the mortgage, the lender may begin foreclosure proceedings under Massachusetts law. Foreclosure targets the property, not the heirs personally, unless an heir co-signed the loan or otherwise personally guaranteed it.
- If heirs want to keep the house, options include:
- Continuing payments from personal funds (if an heir chooses to do so), possibly followed by refinancing or assuming the mortgage (if the lender allows).
- The personal representative arranging a sale of the property during probate; mortgage payoff comes from sale proceeds before distribution to heirs.
- Using estate cash or obtaining a short-term estate loan to maintain payments during administration.
- Mortgage companies will usually require proof of authority (letters testamentary or letters of administration) before discussing account details or accepting estate payments.
Practical consequences — utilities (electric, gas, water, internet)
- Utilities are contractual. The utility company can terminate service for nonpayment. If the property becomes vacant and utilities stop, the home can suffer damage (frozen pipes, mold) that reduces estate value.
- A personal representative can use estate funds to keep utilities on while they decide whether to sell or keep the property. They should prioritize costs that preserve the asset (heat in winter to prevent pipe damage, for example).
- If a family member occupies the home and continues service in their own name, they are personally liable for that utility account going forward unless the personal representative assumes the account for the estate.
Timing and authority issues
Because probate can take months, it is important to act quickly on time-sensitive obligations:
- Notify the mortgage holder and utilities as soon as possible. Lenders often have procedures for deceased borrowers and can tell you what documentation they need.
- File the will and petition for appointment of personal representative promptly so someone has legal authority to manage payments and sell property.
- Open an estate bank account once letters are issued. The personal representative should use that account to pay estate debts and regular obligations tied to estate assets.
What if heirs accept the property?
If an heir receives title to the property (after probate or by intestate succession) and keeps the property, they become responsible for mortgage and utilities going forward. If the heir wants title but cannot afford the mortgage, options include refinancing, assumption (rare and lender-dependent), or selling the property.
Where to find more information and the governing law
Massachusetts probate law that governs the appointment and duties of a personal representative is in Chapter 190B of the Massachusetts General Laws: M.G.L. ch. 190B. For practical procedures and local court information, see the Probate and Family Court page on Mass.gov: Massachusetts Probate and Family Court.
Hypothetical example
Jane dies owning a house with a monthly mortgage. Her adult child, Tom, finds unpaid mortgage notices two months after the death. No personal representative has been appointed yet. Tom notifies the lender and the utility companies, then files the will and petitions the Probate Court to be appointed personal representative. Once appointed and after receiving letters, Tom opens an estate account and uses estate funds to catch up mortgage and utility payments to avoid foreclosure and prevent winter damage. Later, Tom decides either to sell the house and pay the mortgage from sale proceeds or to refinance the loan in his own name if the lender agrees.
Helpful Hints
- Notify the mortgage lender and utilities immediately after the death to learn their specific requirements and avoid surprises.
- File for appointment of a personal representative quickly so someone can act with legal authority; delays can increase risk to the property.
- Use estate funds (not personal funds) to pay mortgage and utilities when possible and record all transactions carefully.
- Keep homeowners insurance active until title transfers or the property is sold. Insurance lapse can void coverage and reduce estate value.
- If you can’t make mortgage payments, contact the lender to discuss options: forbearance, loan modification, short sale, or deed-in-lieu — each has different rules and timelines.
- Remember heirs are generally not personally liable for the decedent’s mortgage unless they co-signed or agreed to assume it. Mortgage remedies normally target the property itself.
- Document calls, letters, and agreements with lenders and utilities. Keep copies of bills and payments in the estate file.
- When in doubt, consult a probate attorney or the Probate and Family Court. Probate practice and deadlines can vary; a lawyer can explain local procedures and help protect estate assets.
Disclaimer: This article is informational only and is not legal advice. It does not create an attorney-client relationship. For advice about a specific situation in Massachusetts, consult a licensed probate attorney or contact the Massachusetts Probate and Family Court.