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Disclaimer: This article provides general information about Vermont probate procedures. It does not constitute legal advice. Always consult a qualified attorney to address your specific situation.

Detailed Answer

When someone dies in Vermont, their appointed executor or administrator must manage the estate’s expenses and ongoing bills during probate. Probate is the court-supervised process of validating the will (if any), inventorying assets, notifying creditors, paying debts, and distributing the remaining property to heirs.

Here are the key steps:

1. Open an Estate Bank Account. The personal representative should open a separate bank account in the estate’s name. This account holds incoming funds (e.g., rental income) and pays all estate-related expenses and bills. Keeping personal and estate funds separate avoids accounting errors and potential disputes.
2. Inventory Assets. Within four months of appointment, the representative must file an inventory listing all estate assets under 14 V.S.A. § 306 (link). This step helps determine available funds to cover expenses.
3. Notify Creditors and Publish Notice. The representative publishes a notice to creditors in a local newspaper and sends direct notices to known claimants. Creditors then have four months to file claims under Title 14, Chapter 185 (link).
4. Pay Funeral and Administration Costs. Vermont law prioritizes certain expenses. Under 14 V.S.A. § 302, the estate must cover reasonable funeral and burial costs (link). Next, the personal representative may claim commissions and fees under 14 V.S.A. § 305 (link).
5. Address Ongoing Bills. For ongoing obligations—mortgage payments, utilities, insurance, and property taxes—the representative uses estate funds. If the estate lacks sufficient cash early on, the representative can petition the probate court for interim distributions or authorization to sell non-essential assets.
6. Resolve Creditor Claims. The estate pays valid creditor claims in the order prescribed by statute. If claims exceed assets, the representative follows 14 V.S.A. §§ 313–315 to prorate payments and obtain court approval for any disputed debts.
7. Seek Court Instructions for Extraordinary Expenses. When unexpected or large expenses arise—such as environmental cleanup or major repairs—the fiduciary may file a petition in probate court for specific authority to incur and pay these costs.
8. Finalize Accounting and Close Estate. After paying all debts, taxes, and expenses, the personal representative files a final accounting. The court reviews this report, and once approved, it issues an order distributing remaining assets to beneficiaries.

Helpful Hints

• Keep meticulous records of every deposit and disbursement.
• Use clear, descriptive account labels (e.g., “Estate of Jane Doe—Utilities”).
• Maintain all receipts, invoices, and bank statements for court review.
• Communicate openly with heirs to manage expectations on distributions.
• Consult an attorney before selling real estate or handling complex debts.
• Watch the statutory deadlines for inventory and creditor notice filings.
• Consider bonding the personal representative to reassure creditors and heirs.