Detailed Answer
Short answer: While an estate goes through probate in Washington, the personal representative (executor or administrator) is responsible for protecting estate property. That generally means keeping mortgage payments and utility services current to avoid foreclosure, liens, damage, or loss of value — but the representative must use estate funds or court authority to do so and follow Washington probate rules (Title 11 RCW).
Who is authorized to act?
Before anyone other than a creditor or surviving joint owner can lawfully manage estate assets, the court normally issues letters testamentary (if there is a will) or letters of administration (if there is no will). The person holding those letters is the personal representative and may act for the estate — for instance, to pay bills, notify lenders and utilities, and carry out repairs. See the Washington Probate Code (Title 11 RCW) for the framework that governs appointment and duties: https://app.leg.wa.gov/rcw/default.aspx?cite=11.
Mortgage payments
Mortgages are secured debts attached to the property. The lender’s mortgage lien survives the borrower’s death. If mortgage payments stop, the lender can pursue its remedies (including nonjudicial foreclosure) under Washington law. Practical consequences:
- If estate bank accounts contain enough cash, the personal representative generally should pay the mortgage from estate funds to preserve the asset’s value.
- If the estate lacks liquid assets, the representative has options: obtain court permission to borrow on behalf of the estate, arrange a loan modification or forbearance with the servicer, sell the property to pay the debt, or allow a beneficiary to keep the property by formally assuming responsibility for the mortgage.
- If the house passes outside probate (for example, by joint tenancy, tenancy by the entirety, or by a living trust), the surviving owner(s) become responsible for the mortgage; the lender still can foreclose if payments stop.
- The representative should communicate with the mortgage servicer early. Servicers can often explain loss-mitigation options and the documentation needed to treat the loan during probate.
Utilities (water, electricity, gas, trash, sewer, internet)
Utilities matter for two main reasons: preventing property damage and keeping the property in saleable condition. Practical points:
- Utility companies require an account holder. If the deceased was the account holder, many companies will allow a personal representative to transfer the account into the estate’s name or into the name of a surviving owner once shown letters of authority.
- If the representative does not maintain utilities, the property can suffer (burst pipes, mold, frozen pipes, etc.). Those damages can reduce value and increase estate liability.
- Utilities typically are paid as ordinary expenses of administration. The representative should pay reasonable ongoing expenses from estate funds. If funds are insufficient, the representative should seek court guidance before spending personal funds or abandoning the property.
- Some utility companies may require a deposit or payment plan for accounts set up in the estate’s name. Keep receipts and records of all utility payments because they are estate expenses.
Priority of payment and creditor claims
Washington probate law sets the order in which estate debts and administration costs are paid. Administrative expenses (including reasonable costs to preserve estate property) are ordinarily paid before general unsecured creditors. Because mortgage debt is secured, the mortgagee’s lien is tied to the property and typically must be satisfied before a sale clears title. For statutory guidance on administration and creditor priorities, consult Title 11 RCW: https://app.leg.wa.gov/rcw/default.aspx?cite=11.
Common scenarios and what usually happens
Hypothetical A — Estate has cash: The personal representative uses estate funds to pay the mortgage and utilities while administering the estate. These payments are treated as administration expenses and reduce the estate’s distributable assets.
Hypothetical B — Estate lacks cash but property is valuable: The representative contacts the lender to arrange a short forbearance or tries to obtain a court order to sell the home quickly. A sale proceeds to repay the mortgage, then remaining funds pay creditors and beneficiaries.
Hypothetical C — Beneficiary wants the house: A beneficiary may keep the house if they agree to assume the mortgage and either refinance or formally execute an assumption/loan modification, or if they contribute funds to the estate so the mortgage stays current.
Risks of inaction
- Missed mortgage payments can trigger foreclosure even while probate is pending.
- Utility shutoffs can cause property damage that lowers the estate’s value and may create liability.
- Acting without authority (for example, paying bills or selling property before letters are issued) can expose the person who acted to personal liability or later accounting requirements.
Practical steps to protect property during probate
- Locate the will and file the appropriate probate petition with the local superior court to get official authority (letters testamentary or administration).
- Open an estate bank account once you have authority. Keep all estate income and payments separate from your personal funds.
- Notify the mortgage servicer and utility companies promptly. Provide letters of authority when requested.
- Maintain homeowner’s insurance and arrange for property maintenance and winterization if the property may sit vacant.
- If funds are tight, explore lender loss-mitigation, short-term loans with court approval, or sale of the property under court supervision.
Remember: The personal representative has fiduciary duties to preserve assets and follow the statutory process. Acting in the estate’s best interest and keeping clear records helps avoid later disputes.
This is a general overview and educational explanation. It is not legal advice. For advice about a specific estate or to learn how Washington statutes apply to your situation, consult a licensed attorney who handles probate in Washington.
Helpful Hints
- Get court-appointed authority (letters) before making big decisions about property.
- Notify the mortgage company immediately and ask about options — lenders often have specific probate procedures.
- Keep utilities on to avoid weather- or damage-related losses; obtain permission to have the account placed in the estate’s name if needed.
- Keep careful records of every payment and communication related to mortgage, utilities, repairs, and insurance.
- If a property is jointly owned or in a trust, check whether probate even applies — some arrangements avoid probate entirely.
- If you worry about foreclosure or bankruptcy implications, speak with a probate attorney quickly; some remedies require prompt action.
- Preserve evidence of value (photos, maintenance receipts, inspection reports) if you plan to sell the property during administration.
Key resource: Washington Probate Code (Title 11 RCW): https://app.leg.wa.gov/rcw/default.aspx?cite=11