How mortgage payments and utilities are handled while an estate is in probate in Connecticut

Short answer: During probate in Connecticut, the personal representative (executor or administrator) is responsible for protecting estate assets, which typically includes maintaining mortgage payments and utilities while the estate still owns the property. If estate funds are insufficient, the mortgage remains a lien on the property and the lender may pursue foreclosure if payments lapse. Utility companies may suspend service if bills are not paid, but the personal representative can contact them to transfer accounts or request temporary arrangements.

Detailed answer — duties, risks, and practical steps

Who is in charge during probate?

When someone dies, the probate court appoints a personal representative (called an executor if named in a will or an administrator if appointed by the court when there is no will). The personal representative has a fiduciary duty to preserve estate assets, pay valid estate debts, and follow the probate court’s directives. For Connecticut probate rules and an overview of estate administration, see the Connecticut Probate Courts information and the state statutes for probate matters: Connecticut Judicial Branch — Probate and Conn. Gen. Stat., Title 45a (Probate).

Mortgage payments: who pays and what happens if they aren’t paid?

– Mortgage obligations do not disappear when the borrower dies. The mortgage remains attached to the property as a lien. The estate is responsible for debts of the decedent to the extent estate assets permit.

– The personal representative should review the mortgage loan documents immediately and notify the lender of the death. Most lenders have procedures for dealing with deceased borrowers. If the estate has cash, mortgage payments can and generally should be paid from estate funds while the property is part of the estate.

– If the probate estate lacks sufficient funds to continue mortgage payments, several outcomes are possible:

The lender can begin default and foreclosure proceedings against the property, because the mortgage is secured by the real property.
If someone inherits the property (by will or by intestacy) and wants to keep it, that person will generally have to assume the mortgage or refinance it in their own name. Simply inheriting the property does not eliminate the mortgage.
The personal representative may seek court authorization to sell the property to pay creditors (including the mortgage) or to resolve claims. Selling the property clears the mortgage from title at closing by paying the loan off from sale proceeds.

– Practical steps the personal representative should take:

Notify the lender immediately and ask about options (forbearance, loan modification, submitting a death certificate and probate documents).
Use estate funds to keep the loan current if feasible; document all payments.
If funds are limited, consider a quick sale or court-authorized sale of the property to avoid foreclosure.

Utilities (electricity, gas, water, trash, etc.)

– Utilities are typically billed to the account holder(s). After death, utilities may remain in the decedent’s name until accounts are transferred or closed.

– The personal representative should protect the property by keeping essential utilities and maintaining homeowners insurance. Leaving utilities off may reduce value (frozen pipes, mold, vandalism) and expose the estate to additional repair costs.

– Utility companies often require proof of authority (death certificate and letters testamentary/letters of administration) before transferring or re-establishing service in the estate’s name. If someone is living in the home (an heir, family member, or tenant), the utility company may require them to set up service in their own name or provide authorization.

– If estate funds are not available, consider these options:

Ask the utility for a short grace period or payment arrangement; many companies allow temporary accommodations in hardship situations.
If a potential buyer or heir will take the property, they can arrange to assume or reestablish utility service when they take possession.
Keep written records of communications with utility companies and any payments made from estate or personal funds for later accounting or reimbursement.

When court approval may be needed

Some significant decisions—like selling real property—usually require court approval in probate. The personal representative should check probate rules and, if needed, petition the probate court to authorize a sale or other action to pay debts. For Connecticut probate procedure and guidance, review resources from the Connecticut Judicial Branch: https://www.jud.ct.gov/probate/ and see the state probate statutes at Conn. Gen. Stat., Title 45a.

Lender remedies and timeline considerations

– Mortgages are secured debts. If payments stop, lenders may declare default and start foreclosure under Connecticut law. Timelines vary by lender and loan type; some lenders require prompt action after missed payments, while others may work with the estate.

– Acting quickly to notify the lender, maintain insurance and utilities, and propose a plan (short sale, refinance, assumption by heir, estate sale) can reduce the risk of foreclosure.

Helpful hints — practical checklist for personal representatives and heirs

Locate the will, mortgage loan documents, homeowner’s insurance policy, and utility account information as soon as possible.
Obtain certified copies of the death certificate and the probate court document (letters testamentary or letters of administration) to present to lenders and utilities.
Contact the mortgage lender immediately to inform them of the death and ask for a list of required documents and possible loss-mitigation options.
Keep utilities on while the property is being maintained or marketed; document payments made from estate funds.
Keep homeowners insurance active until the property is sold or transferred to protect against liability and damage.
If estate assets are insufficient to cover mortgage and other necessary expenses, consult the probate court or a probate attorney about selling the property or seeking court approval for other relief.
Do not sign new agreements or ignore foreclosure notices—address them promptly and get legal advice if needed.
Maintain clear records of all communications, payments, and receipts; the personal representative must account to the probate court for estate transactions.

When to get legal help

If you are the personal representative and the estate lacks liquidity, the mortgage lender is threatening foreclosure, or there is a dispute among heirs about whether to keep or sell property, consult a probate or real estate attorney familiar with Connecticut law. An attorney can help with court petitions, negotiating with lenders, and ensuring compliance with probate rules.

Disclaimer: This article provides general information about Connecticut probate issues and is not legal advice. It does not create an attorney-client relationship. For advice about a specific situation, contact a licensed attorney in Connecticut.