Detailed Answer

Who is responsible for mortgage and utility payments during probate?

After someone dies, their estate—not the heirs personally (unless they co-signed or otherwise agreed)—is generally responsible for the decedent’s debts, including mortgage payments and utility bills. The person appointed to manage the estate (the executor or administrator, often called the personal representative) has the duty to preserve estate assets and to pay valid debts from estate funds as appropriate.

Authority of the personal representative

To act, the personal representative needs legal authority: typically letters testamentary or letters of administration issued by the Surrogate’s Court. With those letters, the representative can access accounts, communicate with creditors and service providers, and use estate cash to pay expenses necessary to preserve estate property. For more on Surrogate’s Court and the probate process, see New York’s Surrogate’s Court rules and procedure: https://www.nysenate.gov/legislation/laws/SCPA and general court information: https://www.nycourts.gov/courts/surrogate/.

Mortgage payments

• If the estate has cash or liquid assets, the personal representative can and generally should pay ongoing mortgage installments to avoid default and protect the value of the property.
• If the estate lacks funds, the representative should communicate with the mortgage lender immediately. Lenders may offer forbearance, reinstatement periods, loan modification, or agree to work with the estate. If the property is titled in the decedent’s sole name, the lender’s primary remedy for nonpayment is foreclosure under New York foreclosure law: https://www.nysenate.gov/legislation/laws/RPAPL.
• If the property is jointly owned with survivorship (e.g., joint tenants or tenants by the entirety), ownership may pass automatically to the survivor, who then becomes responsible for mortgage payments unless the lender agrees otherwise.
• If the mortgage has a due-on-death rider or the loan terms allow acceleration upon death, the lender may demand full payment or take other action unless it agrees to other terms. Practically, lenders are often willing to discuss options with a personal representative to avoid foreclosure.

Utilities (electric, gas, water, cable, internet)

• Utilities are contractual services charged to the account holder. A utility company can typically stop or transfer service if bills are not paid. For regulated utilities (electric, gas, water), the New York Department of Public Service and Public Service Law govern some protections and procedures: https://dps.ny.gov/ and https://www.nysenate.gov/legislation/laws/PUB.
• The personal representative should maintain essential utilities (heat, electricity, water) if the cost is reasonable and necessary to preserve the property. Paying utilities helps preserve property value and prevents damage (e.g., frozen pipes in winter).
• Utility companies may require the account to be placed in the personal representative’s name or the name of a responsible party. The representative should contact each provider, explain the situation, and arrange payment or transfer to avoid service interruption.

When estate cash is insufficient

If the estate does not have enough cash to keep paying mortgage and utilities, common options include:

• Ask an heir or interested person to advance funds to the estate to cover short-term expenses (often repaid from estate proceeds).
• Obtain a court order to sell real property or authorize borrowing against estate assets. The Surrogate’s Court can approve a sale or other transactions when necessary to pay debts and settle the estate. See SCPA guidance: https://www.nysenate.gov/legislation/laws/SCPA.
• Work with the lender on a sale of the property (e.g., a private sale or short sale) to satisfy the mortgage.
• If the property has a mortgage and no one can or will keep paying, the lender may commence foreclosure under RPAPL. Foreclosure timelines vary by case, but lapse of mortgage payments increases the risk of foreclosure and loss of the property.

Priority of payments

Some expenses are treated as necessary estate administration costs (such as securing the property, paying utilities to prevent damage, and protecting assets). Secured debts—mortgages—are enforceable against the property. The personal representative should follow the probate rules for paying debts and claims in the correct order; when in doubt, seek guidance from the Surrogate’s Court or counsel. Relevant statutes for estate administration and creditor claims are in New York’s Estates, Powers & Trusts Law and the SCPA: https://www.nysenate.gov/legislation/laws/EPT and https://www.nysenate.gov/legislation/laws/SCPA.

Practical steps to take immediately

1. Find the decedent’s mortgage statements and utility bills. Note payment due dates and contact information.
2. Obtain letters testamentary or letters of administration from Surrogate’s Court as soon as possible so the personal representative has authority to act.
3. Contact the mortgage lender and utility providers promptly. Explain the death and ask about options to avoid interruption or foreclosure.
4. Inventory estate assets to see whether estate funds can cover ongoing obligations. If there are insufficient funds, discuss options with the court or an attorney.

What heirs should know

Heirs do not automatically inherit personal responsibility for mortgage payments unless they co-signed the loan or accepted the property subject to the mortgage (for example, by agreeing to assume the mortgage). If heirs take the property, they should confirm how the mortgage will be handled with the lender. If they do not take the property, the estate’s executor remains responsible for administration until the court closes the estate.

Helpful Hints

• Preserve the property: keep insurance, heat, and basic utilities on to avoid damage and liability.
• Communicate early with mortgage lenders and utilities; most prefer working with the estate to avoid foreclosure or service shutoff.
• Get legal authority quickly: apply for letters from Surrogate’s Court so the personal representative can act promptly.
• Keep careful records of all payments made from estate funds—this is critical for estate accounting and reimbursement.
• If the estate may need to sell real property, start the appraisal and marketing process early and consult the Surrogate’s Court rules on sale procedures.
• Consider short-term solutions (heir advances, temporary loans) only after documenting agreements and understanding repayment priority in probate administration.
• If you are unsure of rights or deadlines, consult a New York probate attorney or the Surrogate’s Court for guidance. Find statutes and study materials at: https://www.nysenate.gov/legislation/laws/EPT and https://www.nysenate.gov/legislation/laws/SCPA.