Who Pays The Mortgage, Utilities And Insurance While A South Carolina Estate Is In Probate?

In this article, you will discover:

• Who is responsible for paying a deceased person’s mortgage in South Carolina.
• Who is responsible for paying a deceased person’s unpaid property taxes and household bills.
• What to do if the estate doesn’t have enough cash to maintain the property.

Who Is Responsible For Paying A Deceased Person’s Mortgage?

The personal representative of the estate is responsible for paying the mortgage and other debts from estate funds, not personal funds.

If there’s a co-mortgage with two people on it, the co-mortgagor would also be liable for at least half of the mortgage payments.

Who Pays Utility Bills, Property Taxes, And Other Expenses While The Home Is In Probate?

Suppose you’re living in the house. You should then pay the utilities and other normal, day-to-day expenses. The personal representative may help with those expenses, but they must pay property taxes, homeowners insurance, and mortgage payments.

Can Estate Funds Be Used To Pay The Mortgage?

The personal representative has an obligation to maintain the estate’s assets. As such, he or she would be responsible for paying that mortgage from estate funds, or at least half of it, if someone else is also on the mortgage.

What If The Estate Doesn’t Have Enough Cash To Maintain The Property?

If the estate doesn’t have enough cash to maintain the property, you, as the personal representative, can contact a beneficiary who will eventually inherit the property. You can ask the beneficiary for help paying the cost of maintaining the property until the estate closes. If that isn’t an option, you must petition the court to sell the property immediately to pay the debts.

Can A Beneficiary Living In The House Be Required To Contribute Toward Expenses?

If you’re a beneficiary living in the house, you are required to contribute toward expenses. For example, you could be charged fair-market-value rent, or you may be required to pay for utilities.

However, if you’re a surviving spouse living in the house, you have different rights and obligations than other beneficiaries. Still, you are responsible for paying maintenance and occupancy expenses.

What Should A Personal Representative Do Immediately After Death To Protect Estate Real Property?

Your first duty as executor is to secure the property. That could include installing an alarm system if needed, ensuring the property is in good shape, or maintaining it by cutting the grass or paying household bills and utilities.

Still Have Questions? Ready To Get Started?

For more information on South Carolina estate administration, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (864) 271-7940 today.