Answer: Who pays the mortgage and utilities while an estate goes through probate in Pennsylvania?
Short answer: The estate — through the personal representative (executor or administrator) — is responsible for preserving the decedent’s property, which commonly means continuing mortgage payments and keeping utilities on when necessary. If the estate lacks money, the property remains subject to the mortgage and the lender can pursue foreclosure, although heirs are not personally liable for the mortgage debt unless they co-signed.
Detailed answer — how this works in Pennsylvania
1. Who steps in when someone dies? When a person dies, the probate court appoints a personal representative (also called an executor if named in a will, or an administrator if appointed by the court). That person has the duty to collect assets, pay debts, and preserve estate property while administration or probate continues. For an overview of Pennsylvania’s probate and estate law, see Title 20 — Decedents, Estates and Fiduciaries: https://www.legis.state.pa.us/cfdocs/legis/li/consCheck.cfm?txtType=HTM&ttl=20.
2. Mortgage payments during probate
- The mortgage stays attached to the real property. The lender can enforce the mortgage regardless of probate status.
- The personal representative can and generally should use estate funds to make mortgage payments to protect the property (avoid default, foreclosure, and loss of equity).
- If the personal representative does not make payments and there are no other funds or heirs willing to pay, the lender may begin foreclosure consistent with Pennsylvania law and the mortgage contract.
- Heirs who accept property outright may become responsible for ongoing payments only if they voluntary assume the loan (refinance or assume the mortgage) — being an heir does not automatically transfer personal liability to repay the mortgage unless the heir is a co-signer on the loan.
3. Utilities (electricity, gas, water, trash, etc.)
- Utilities are essential for property preservation. The personal representative commonly keeps utilities active to prevent property damage (e.g., frozen pipes) and to maintain home value.
- Utilities typically require a customer of record. A utility company may insist on bill payment or a security deposit. The personal representative can arrange to have service continue in the estate’s or their own name and pay bills from estate funds.
- If utilities are shut off, the property can deteriorate, decreasing value and complicating sale or transfer.
4. Paying from estate funds vs. personal funds
- The correct practice is to pay estate expenses (mortgage, utilities, insurance, property taxes, repairs) from an estate bank account after the personal representative obtains authority to act (often via court-issued letters testamentary or letters of administration).
- If immediate action is required (e.g., to stop utility shutoff or a missed mortgage payment), a personal representative may act before formal letters issue, but they should document everything carefully and seek court approval as soon as possible.
5. Priorities and insolvency
- When estate funds are limited, Pennsylvania law requires following statutory priorities for paying claims and expenses. Preserving secured property (real estate with a mortgage) often takes priority because failure to preserve it will reduce the estate for all beneficiaries.
- If the estate cannot pay a secured debt, the secured creditor can enforce its lien (foreclose). Unsecured creditors can file claims in probate, but they are paid only after higher priority expenses are satisfied.
Practical consequences and examples (hypotheticals)
Example 1 — estate with cash: Decedent’s estate has enough liquid assets. The personal representative opens an estate account, pays the mortgage and utilities from estate funds during probate, and later pays creditors and distributes what’s left to beneficiaries.
Example 2 — estate without cash and an heir wants the house: The heir can either (a) negotiate with the lender to assume or refinance the mortgage, (b) use personal funds to continue payments (and later seek reimbursement from the estate if appropriate), or (c) let the lender foreclose if none of these options are feasible.
Example 3 — abandoned property and utilities disconnected: If utilities shut off and the property suffers damage (burst pipes, mold), the estate’s value may fall. The personal representative should act quickly to restore service or arrange winterization to preserve value.
What you should do right away
- Locate the mortgage statement and contact the mortgage servicer to report the death and learn options (forbearance, loan assumption, modification).
- Secure the property and keep utilities and insurance in force if funds allow.
- Open an estate bank account and obtain court-issued letters so the personal representative can pay bills formally from estate funds.
- Keep careful records and receipts for all payments made on behalf of the estate.
State resources and where to get help
- Pennsylvania courts — probate and estate information: https://www.pacourts.us/. The Unified Judicial System provides local Register of Wills and Orphans’ Court contacts.
- Pennsylvania Department of Banking and Securities (mortgage consumer assistance): https://www.dobs.pa.gov/Consumers/Pages/default.aspx.
Disclaimer: This article is for general information only and does not constitute legal advice. It explains common practices under Pennsylvania law but does not replace consulting a licensed Pennsylvania attorney about your specific situation.
Helpful hints — quick checklist for personal representatives and heirs
- Get the death certificate and locate the will (if any) and mortgage documents.
- Contact the mortgage servicer immediately to report the death and learn options to prevent default.
- Contact utility companies to learn steps to continue service, transfer accounts, or temporarily place service in the estate’s or representative’s name.
- Open an estate checking account and keep all receipts for mortgage, utilities, insurance, and repairs.
- Obtain letters testamentary/administration from the Register of Wills before making major estate payments when possible.
- Talk to an estate or probate attorney before making decisions about paying debts or transferring property, especially if estate funds are limited or there is a high foreclosure risk.