Detailed Answer
When an individual dies, their estate enters probate in Connecticut. The court appoints a personal representative (also called an executor or administrator) to gather assets, pay debts, and distribute property under C.G.S. § 45a-361. Managing estate expenses and ongoing bills requires careful steps to protect estate assets and reduce personal liability.
1. Open a Dedicated Estate Bank Account
After appointment by the probate court, the personal representative should open a separate bank account in the estate’s name. Deposit all funds from the decedent’s accounts and keep all income, interest, or rent payments flowing into this account. This separation ensures clear records for paying expenses and avoids commingling personal funds.
2. Identify and Prioritize Expenses
Under C.G.S. § 45a-361, certain expenses take priority. These include:
- Funeral and burial costs
- Estate administration expenses (court fees, attorney fees, accounting fees)
- Taxes and secured debts (mortgage, property tax, homeowner insurance)
Arrange bills in this order. Paying priority debts first protects the estate from penalties or interest and reduces personal representative liability.
3. Notify Creditors and File Claims
Within four months of appointment, the personal representative must notify known creditors and publish a notice to unknown creditors under C.G.S. § 45a-366. Creditors then have a statutory period to file claims. You should:
- Compile all known bills (utilities, medical, credit cards).
- Review filed claims and validate legitimate debts.
- Dispute or reject improper claims with court approval.
4. Pay Ongoing Bills from Estate Funds
Bills such as electricity, water, phone service, and home maintenance are estate debts. Use estate account funds to keep services active and protect real property. Always keep detailed records of invoices, payments, and account statements for each expense.
5. Seek Court Approval for Large or Unusual Expenses
If you need to pay a large debt or sell property to cover expenses, petition the probate court. Provide an inventory, proposed budget, and explanation. The court’s approval shields you from personal liability and ensures transparency.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a qualified attorney for guidance on your specific situation.
Helpful Hints
- Keep detailed, dated records of every transaction in the estate account.
- Use accounting software or spreadsheets to track expenses and income.
- Communicate regularly with beneficiaries to manage expectations.
- Confirm that all creditors receive proper notice to avoid future claims.
- Budget for unexpected costs, such as emergency repairs or tax audits.
- Consult a probate attorney early to avoid common procedural mistakes.