Detailed Answer
Who manages estate expenses and ongoing bills? In Louisiana, the court appoints an executor (also called a succession representative) to gather assets, pay debts and expenses, and distribute what remains to heirs. The executor acts under the supervision of the probate court and must follow Louisiana Code of Civil Procedure (La. C.C.P.) and Civil Code (La. C.C.).
Initial steps: Once the succession opens, you file for probate in the parish where the decedent lived. You notify potential heirs and creditors. The executor secures the deceased’s property, changes or cancels utilities, and arranges for insurance and maintenance of real estate.
Funding the estate
The executor may open a dedicated estate bank account. Incoming funds can include:
- Life insurance proceeds
- Retirement benefits
- Proceeds from the sale of estate assets
- Interim distributions from financial institution accounts
Paying ongoing bills
Common ongoing expenses include mortgage payments, utilities, property taxes, insurance premiums, and household maintenance. To cover these:
- Use the estate account funds. Do not mix personal and estate funds.
- If cash is tight, petition the court for an advance from the estate’s assets or an interim allowance under La. C.C.P. art. 3203 (C.C.P. art. 3203).
- Keep detailed records of every expense and payment. Courts require accountings before final distribution.
Handling creditor claims
Creditors have nine months from the date of first publication to file claims against the succession (La. C.C.P. arts. 3271–3272, C.C.P. art. 3271). The executor:
- Publishes notice to creditors in a local newspaper.
- Validates or contests claims.
- Pays legitimate debts in order of preference (funeral expenses, last illness, estate administration costs, then other creditors).
Final accounting and distribution
After paying expenses, taxes, and valid claims, the executor requests court approval of the final account. Once approved, remaining assets go to heirs under Louisiana Civil Code articles on intestate or testamentary succession (La. C.C. art. 3291 et seq.).
Disclaimer: This information is provided for educational purposes only and does not constitute legal advice. Consult a qualified Louisiana attorney for advice tailored to your situation.
Helpful Hints
- Open a separate bank account for estate funds immediately.
- Track every transaction with receipts and dates.
- Communicate proactively with beneficiaries to avoid surprises.
- File creditor notices promptly to limit unknown claims later.
- Consult with a probate attorney if complex assets or disputes arise.
- Review insurance policies—life, homeowner’s, and auto—for necessary updates.
- Understand Louisiana’s forced heirship rules if minor children or disabled heirs exist.