Detailed Answer

Short answer: In North Dakota, the personal representative (executor or administrator) of the estate is generally responsible for protecting estate property and paying the estate’s necessary expenses during probate, including mortgage payments, property taxes, insurance, and utilities — but how those bills get paid depends on whether the estate has cash, the terms of the mortgage, and court orders. Lenders and utility companies can still take collection actions against property or the estate if bills are not paid. This is informational only and not legal advice.

Who has responsibility during probate?

When someone dies, the court typically appoints a personal representative to collect assets, pay debts and expenses, and distribute the remaining property according to the will or North Dakota law. The personal representative’s duties and authority are governed by North Dakota probate law (see North Dakota Century Code, Title 30: Probate). For general guidance from the state courts, see the North Dakota Courts probate self-help information.

Links:

• North Dakota Century Code, Title 30 (Probate)
• North Dakota Courts — Probate Self-Help

Mortgage payments during probate

Key points:

• If the decedent owned real estate that is secured by a mortgage, the mortgage remains a valid lien on the property after death. The lender has the right to receive payments and may begin foreclosure if payments stop.
• If the estate has sufficient cash or liquid assets, the personal representative should pay mortgage payments to preserve the estate property as part of their duty to protect estate assets. That obligation is part of administering the estate’s necessary expenses under Title 30.
• If the estate lacks funds, the personal representative has several options: negotiate a forbearance or loan modification with the lender; seek court permission to use other estate assets to pay the mortgage; refinance or sell the property through probate sale; or allow the heir/beneficiary who will receive the property to take responsibility for the loan (subject to lender approval).
• Jointly titled property or property held in a trust or by beneficiary designation may pass outside probate. If the beneficiary or joint owner becomes the owner immediately, that person must address the mortgage directly. If the mortgage remains in the decedent’s name only, the lender could still require payment or take foreclosure action if the loan becomes delinquent.

Utilities, insurance, and property taxes

Essentials to protect value of estate property:

• Utilities: The personal representative should keep utilities on (or otherwise secure the property) to prevent damage, vandalism or code violations. Utility companies may require the representative to provide proof of appointment (letters testamentary/letters of administration) and to put the account in the estate’s or new owner’s name.
• Property insurance: Maintaining homeowners or hazard insurance is critical. If the policy is in the decedent’s name, the insurer typically allows a limited period for the representative to continue coverage, but the representative should notify the insurer promptly and ensure continuous coverage.
• Property taxes and assessments: These are charges that typically survive death. The estate must pay taxes and assessments as a priority obligation of administration. Unpaid property taxes may lead to tax liens or sale.

What if the estate cannot pay these bills?

Options and consequences:

• Negotiate with creditors. Mortgage servicers often offer short-term solutions (forbearance, repayment plans) when they learn a borrower has died.
• Ask the court for authority. If the representative needs to use estate funds or sell property to pay debts, they may petition the probate court for approval.
• Sell the property through probate. If sale is necessary to pay debts and expenses, the representative can request a court-supervised sale under North Dakota law.
• Risk of foreclosure or lien. If mortgage payments or taxes go unpaid, the lender or taxing authority may enforce their remedies against the property even while probate proceeds.

Personal liability of the personal representative

A properly appointed personal representative who acts in good faith and within court authority will normally not be personally liable for estate debts paid from estate assets. However, if a representative wrongfully spends estate money, fails to secure property, or ignores court orders, they could face liability. Keep careful records and seek court approval before taking major actions.

Practical timeline and steps

1. Locate the will (if any) and file a petition for probate promptly to obtain letters testamentary/administration.
2. Notify the mortgage servicer, utility companies, insurer, and any relevant taxing authorities. Provide copies of the death certificate and letters of appointment as requested.
3. Inventory estate assets and funds. Determine whether estate cash can cover ongoing mortgage, taxes, insurance and utilities.
4. If funds are insufficient, notify the court and creditors and explore negotiated solutions, sale, or court authorization to use non-cash assets.
5. Document all communications and expenditures carefully; keep receipts and records for the estate accounting.

When to contact a lawyer

Consider consulting a North Dakota probate attorney if:

• The estate lacks sufficient funds to pay mortgages or taxes and you must decide whether to sell property.
• The lender threatens foreclosure while probate is pending.
• Creditors dispute priority or the identity of estate assets.
• There are potential conflicts among heirs about who will pay ongoing bills or take possession of property.

A lawyer can help the personal representative obtain the court orders needed to sell property, use estate funds, or defend against foreclosure.

Helpful Hints

• Obtain letters testamentary/administration quickly — most banks, insurers and utility companies require them before changing accounts.
• Contact the mortgage servicer immediately after appointment. Many servicers have a “deceased borrower” process and may pause aggressive collection while they review options.
• Keep the property insured and utilities on (or winterize/secure the property) to avoid damage or code violations that reduce value.
• Document all estate payments and negotiations in a ledger or spreadsheet for the estate accounting.
• If an heir plans to assume the mortgage, have them coordinate directly with the lender — lenders often require underwriting and may need the loan refinanced.
• Ask the court for instructions before using estate funds for significant expenditures or selling major assets to avoid later disputes or personal liability.
• Explore short-term solutions such as forbearance, loan modification, or a probate sale rather than allowing foreclosure.

Disclaimer: This article explains general principles of North Dakota probate practice and is for educational purposes only. It is not legal advice and does not create an attorney-client relationship. For advice about a specific situation, consult a licensed North Dakota probate attorney.