Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
Navigating estate expenses and ongoing bills during probate requires careful planning and adherence to Utah probate law. Below is an overview of the key steps.
Role of the Personal Representative
When a person passes away, the court appoints a personal representative to manage the estate. Under Utah Code Ann. §75-3-715(1) (power of personal representative), the representative has broad authority to collect assets, pay debts, and maintain property unless restricted by the will or court order.
Setting Up an Estate Bank Account and Inventory
The personal representative should open a dedicated estate bank account. This separates personal funds from estate funds and creates a record for all income and expenses. Utah Code Ann. §75-3-501 outlines filing an inventory of estate assets with the court.
Payment of Estate Expenses and Claims
Utah law prioritizes certain expenses and claims. Under Utah Code Ann. §75-3-1201 (payment of expenses of administration), the estate must pay in order:
- Funeral and burial expenses
- Expenses of last illness, including medical bills
- Costs of administering the estate
- Reasonable attorneys’ fees and court costs
- Taxes and other debts
The personal representative should gather invoices, submit claims, and keep detailed records before approving payments.
Managing Ongoing Bills and Utilities
During probate, the personal representative may need to pay recurring bills—such as mortgage, utilities, insurance, and maintenance—to preserve estate assets. The representative has the same authority as an unmarried owner (§75-3-715).
Key steps include:
- Review existing service agreements and notify providers of the death.
- Use estate funds to pay essential services to avoid late fees or shutoffs.
- File for court approval before making large repairs or improvements.
Creditor Notice and Claims Period
The personal representative must notify known creditors and publish notice to unknown creditors per Utah Code Ann. §75-3-801 (notice to creditors). Creditors have four months from notice to submit claims under §75-3-804. Valid claims are then paid from estate assets.
Court Approval for Major Expenses
Certain acts—like selling real property or incurring substantial debt—require court approval. The personal representative should file a petition and notice interested parties before proceeding.
Insurance and Property Protection
Maintaining adequate insurance coverage is vital. The personal representative should verify homeowners’, auto, and liability policies remain active until property transfers or is sold.
Helpful Hints
- Maintain accurate, dated records for every transaction.
- Limit use of personal funds—all estate expenses should flow through the estate account.
- Communicate regularly with beneficiaries and keep them updated.
- Consult a probate attorney for complex estates or disputes.
- File tax returns and pay any income or estate taxes promptly.