Disclaimer

This is general information, not legal advice. I am not a lawyer. For advice about your specific situation, consult a licensed Alaska attorney.

Detailed Answer

When someone dies and their estate enters probate in Alaska, two common practical concerns are: who must keep paying the mortgage on any real property and who pays ongoing utilities (electricity, water, heating, etc.) while the estate is administered. The short answer: the estate (through the personal representative) is generally responsible for necessary expenses to preserve estate property, including mortgage payments and utilities. If payments stop, the mortgage lender and utility providers can take collection or enforcement actions that may harm the estate’s value.

Who is responsible during probate?

Once a personal representative (sometimes called an administrator or executor) is appointed by the probate court, that person has the duty to identify estate assets and to preserve and manage them. That duty typically includes paying necessary and reasonable expenses to maintain estate property—most importantly mortgage payments, property taxes, insurance, and utilities. These obligations come from the duties of administration under Alaska probate law; see Alaska Statutes, Title 13 (Decedents’ Estates) for the governing framework: https://www.akleg.gov/basis/statutes.asp#13.

What if the estate has enough cash?

If the estate has liquid funds, the personal representative should use estate funds to pay ongoing obligations that preserve assets. Mortgage lenders and utilities are normally paid as administrative expenses before many other distributions so the asset is not lost or damaged.

What if the estate lacks funds?

If there is insufficient cash in the estate to cover mortgage or utility bills, several outcomes are possible:

• The lender may begin foreclosure or other enforcement if mortgage payments lapse. Lenders keep their contractual and statutory rights unless the mortgage is brought current or a court orders otherwise.
• Utility providers can terminate service for nonpayment. Termination risks property damage (frozen pipes, mold) that can reduce estate value.
• The personal representative can seek court approval to use other estate assets to pay debts or to borrow money on behalf of the estate. The probate court can grant limited authority to preserve the estate.
• Heirs or beneficiaries may agree to pay or assume the mortgage and utilities in order to keep the property, subject to lender approval for assumption or refinancing.

Options to avoid foreclosure or shutoff

Common approaches while probate proceeds:

• Continue payments from estate bank accounts or funds the personal representative can access.
• Heirs or beneficiaries make payments or formally assume the mortgage (lender approval typically required).
• Arrange a short sale or sell the property through probate to pay the mortgage and distribute any remainder.
• Request temporary relief from the lender—some lenders offer forbearance, loan modification, or allow estate administration time before starting foreclosure.
• Ask the probate court for authority to borrow against estate assets or to pay necessary expenses; the court can prioritize certain administrative claims so the property is preserved.

Timing and creditor claims under Alaska law

Alaska probate law sets procedures and timelines for administering an estate and paying claims. The personal representative must identify creditors and handle allowed claims in the order required by statute and court rule. For the statutory framework on administering decedents’ estates in Alaska, see Alaska Statutes, Title 13: https://www.akleg.gov/basis/statutes.asp#13. The Alaska courts also provide practical probate information and forms for administrators: https://courts.alaska.gov/shc/probate/index.htm.

What happens to the house if mortgage payments stop?

If mortgage payments are not made, the lender can follow foreclosure procedures available under Alaska law and the mortgage contract. Foreclosure can lead to sale of the property and extinguish the estate’s interest. That is why preserving payments or arranging an alternative (sale, refinance, assumption) is critical. If heirs want to keep the house but cannot bring the loan current, they usually must negotiate with the lender for assumption or refinancing.

Practical responsibilities of the personal representative

• Inventory estate assets, including real property and outstanding loan and utility accounts.
• Notify mortgage lender and utility companies of the death and that the estate is in probate. Ask about short-term options to prevent foreclosure or service interruption.
• Determine whether estate funds or beneficiary contributions can cover payments while administration continues.
• Seek court guidance or approval before making large decisions (selling property, borrowing). The court can authorize actions to preserve assets if necessary.

When heirs want the home

If one or more heirs want to keep the home, options include assuming the mortgage (if the lender permits), refinancing in their names, or buying out other heirs. The lender’s consent often controls whether a mortgage assumption is possible. If heirs do not act, the estate may have to sell the property to satisfy the mortgage and other claims.

Key takeaways

• The estate—through the personal representative—is generally responsible for mortgage payments and utilities to preserve property during probate.
• If payments lapse, lenders and utilities can take action (foreclosure, service shutoff) that may reduce estate value.
• Communicate quickly with lenders and utilities, inventory estate funds, and consider court-authorized steps to preserve assets.
• Consult an Alaska probate attorney early if the estate lacks funds to pay these ongoing obligations.

Helpful Hints

• Notify the mortgage company and utility providers immediately after the death. Ask about options to delay foreclosure or shutoff while probate proceeds.
• Open an estate bank account as soon as you are appointed personal representative. Use it for mortgage, insurance, property taxes, and utility payments.
• Preserve evidence of payments and communications with lenders and utilities—keep copies of statements, letters, and emails.
• If the estate lacks funds, consider whether heirs can temporarily fund payments with a written agreement to be repaid from the estate.
• Don’t allow utilities to be shut off in cold months—frozen pipes and damage can greatly reduce property value and cost more to fix than keeping service on.
• If foreclosure looks imminent, consult a lawyer quickly. A lawyer can explain options such as sale through probate, short sale, or motions to delay enforcement while the estate is managed.
• Use the Alaska Statutes (Title 13) and Alaska Court probate resources to understand statutory duties and deadlines: Alaska Statutes, Title 13 and Alaska Courts probate information.