Disclaimer: I am not a lawyer. This article provides general information about Rhode Island probate practice and does not constitute legal advice. For advice about a specific situation, contact a licensed Rhode Island attorney or the Probate Court.

Detailed Answer

Overview: What probate means for bills and secured debt

When a person dies, their assets enter an estate. The probate process appoints someone (an executor under a will or an administrator without a will) to collect assets, pay valid debts, and distribute what remains to heirs. Mortgage loans and utilities do not disappear when a borrower dies. Creditors and service providers expect payments while the estate exists. In Rhode Island, the Probate Court oversees the appointment of the personal representative and issues documents (often called “letters” or “letters testamentary/administration”) that the representative uses to act for the estate. See the Rhode Island Probate Court information: https://www.courts.ri.gov/Probate/Pages/default.aspx. You can review state statutes and probate rules at the Rhode Island General Assembly statutes page: https://www.rilegislature.gov/Statutes/.

Mortgage payments

– The mortgage lender retains rights under the loan and the mortgage/security deed. Mortgage payments remain due according to the loan terms. If payments stop, the lender may begin a foreclosure action subject to Rhode Island law.

– Who should pay while probate is pending: the estate is primarily responsible for debts of the decedent. The personal representative should use estate funds to pay ongoing obligations such as mortgage payments if the estate has sufficient liquid assets.

– If the estate lacks cash: the representative has several options—continue to negotiate with the lender (mortgage forbearance, loan modification, or a repayment plan), sell the property through the probate process to pay the mortgage, or allow the lender to foreclose if there is no alternative. Secured creditors (mortgage lenders) normally are paid from the secured property at sale before unsecured creditors or heirs.

– If an heir or family member lives in the house: occupying heirs are not automatically personally responsible for the mortgage unless they personally signed the loan or took title into their own name. However, the lender can still foreclose on the property for nonpayment by the estate. An occupying heir should coordinate with the personal representative and the lender to avoid foreclosure—options may include assuming the mortgage, refinancing, or making payments personally (preferably in writing and after consulting counsel).

Utility accounts (electric, gas, water, cable, internet)

– Utilities must be paid to avoid termination of service. Unlike mortgages, many utilities will turn off service when account holders die or when bills go unpaid.

– The personal representative should contact each utility company quickly. Companies typically require a copy of the death certificate and proof of the representative’s authority (letters from the Probate Court) to transfer accounts into the estate’s name or into the representative’s name for the purpose of paying bills.

– Practical options: keep existing accounts active in the decedent’s name while the representative pays from estate funds; transfer accounts to the estate or to a new account holder; or terminate unnecessary services. Maintain homeowner’s insurance and utilities until property is sold or transferred.

Timing and creditor claims

– The personal representative must identify and notify known creditors, and Rhode Island law sets procedures and timeframes for claim filing and notice. Creditors who timely file valid claims can be paid from estate assets. Because mortgage lenders are secured creditors, they have priority on the secured property’s proceeds.

– If the estate needs time to decide how to handle a mortgage, the representative should notify the lender and ask about temporary relief options to avoid immediate foreclosure proceedings while probate moves forward.

Consequences of inaction

– If nobody pays the mortgage and the estate lacks a plan or funds, the lender can initiate foreclosure under Rhode Island law. Utility shutoffs can happen quickly if bills are unpaid.

– Heirs who accept property only after distribution may face fewer direct obligations than if they accept title earlier. However, heirs who take title or co-signed loans may be personally liable.

Practical steps the personal representative should take

1. Obtain multiple copies of the death certificate.
2. Open the probate case and obtain letters testamentary or letters of administration from the Probate Court.
3. Inventory assets and determine estate cash available to pay ongoing obligations.
4. Contact the mortgage lender promptly; provide proof of death and the representative’s letters; explore payment options, short-term forbearance, or loan assumption if appropriate.
5. Contact each utility company, provide necessary documentation, and arrange payment or account transfer to maintain service until the estate’s plans are finalized.
6. Keep insurance on property current to protect estate value.
7. If needed, consult a Rhode Island probate attorney to advise on creditor notices, sale of real property, and avoiding foreclosure.

When to get legal help

Contact an attorney if the estate lacks funds to keep mortgage and utilities current, if the lender threatens foreclosure, if heirs disagree about occupancy or payment, or if complicated creditor claims arise. A probate attorney can advise about Rhode Island-specific procedures and timelines for creditor notices and for selling estate property.

Helpful Hints

• Notify the mortgage lender and utilities immediately—early communication often prevents emergency actions like foreclosure or shutoff.
• Keep records of all payments made from estate funds and of communications with lenders and utility companies.
• Do not transfer property title or allow heirs to take title until you understand estate liabilities and until the probate process permits distribution.
• If an heir wants to keep the house, consider a formal assumption, refinance, or purchase so the mortgage responsibility shifts from the estate to the heir personally.
• Use the Rhode Island Probate Court website for forms and local probate procedures: https://www.courts.ri.gov/Probate/Pages/default.aspx.
• Review state statutes and probate rules if you need to confirm deadlines or formal claim procedures: https://www.rilegislature.gov/Statutes/.
• When in doubt, hire a probate attorney—probate rules and creditor priorities can be technical, and mistakes can cost the estate or heirs.