Managing Estate Expenses and Ongoing Bills During Wisconsin Probate
Disclaimer: This information is for educational purposes only and does not constitute legal advice.
Detailed Answer
When someone passes away in Wisconsin, their estate enters probate to settle debts, pay expenses, and distribute assets under Wisconsin law (see Wis. Stat. ch. 865). A personal representative (PR) oversees the process. Here’s how estate expenses and ongoing bills typically get managed:
1. Appointment and Bond
The court appoints a PR after a petition. The PR may need to post a bond to protect creditors and beneficiaries (Wis. Stat. § 865.01).
2. Opening an Estate Bank Account
The PR opens a bank account in the estate’s name. All estate funds—sale proceeds, dividends, or retirement benefits—flow into this account. The PR pays approved expenses and bills from this account.
3. Notice to Creditors
The PR publishes notice to creditors in a local paper and mails notice to known creditors (Wis. Stat. § 865.03). Creditors then file claims against the estate within four months.
4. Prioritizing and Paying Debts
The PR reviews creditor claims and pays valid debts in priority order. Typical priorities are funeral expenses, administrative costs, secured claims (like mortgages), and unsecured claims (credit cards, medical bills). The PR must follow Wis. Stat. ch. 865 procedures for allowance and payment (Wis. Stat. § 865.21).
5. Managing Ongoing Household Bills
- Mortgages and Loans: Continue monthly payments to avoid foreclosure. Use estate funds if sufficient.
- Utilities and Insurance: Notify providers of the death, update billing to the estate account, and keep utilities and homeowner’s insurance active to protect property value.
- Property Maintenance: Pay for lawn care, snow removal, and security monitoring to prevent loss or damage.
6. Court Approval for Extraordinary Expenses
If expenses exceed usual administration costs—such as hiring appraisers, contractors for repairs, or real estate commissions—the PR may need court approval under Wis. Stat. § 865.25.
7. Record-Keeping and Reporting
The PR keeps detailed records of all receipts, disbursements, and creditor claims. At the end of administration, the PR files a final account and petition for discharge. Once the court approves, the PR distributes remaining assets to beneficiaries.
Helpful Hints
- Open a dedicated estate checking account immediately to separate personal and estate funds.
- Keep a running spreadsheet of claims, bills paid, and upcoming due dates.
- Communicate with the court clerk to understand local probate timelines and fee schedules.
- Consult a probate attorney early if the estate holds real estate, business interests, or complex investments.
- Maintain open communication with beneficiaries on expense status and timing of distributions.