After a loved one dies, family members often feel obligated to step in and pay their bills. While this comes from a place of love and responsibility, it’s not the best move. Legally, those bills should only be paid as part of the probate process – once an estate has been opened in probate court.
Here’s why:
Not all creditors will go through the necessary legal steps to get paid as part of an estate. You might be wasting money if you jump in and pay bills out of pocket or from the estate’s assets. Those funds could be used more strategically if handled through the proper probate process.
There are exceptions.
In some cases, paying certain bills right away could be smart, especially when dealing with secured debts like a mortgage or car loan. Let’s look at a couple of scenarios:
Mortgage Payments – If you and your siblings are set to inherit a house with significant equity, keeping up with the mortgage is crucial. Missing payments could lead to foreclosure, putting that valuable asset at risk.
Car Loans – If there’s a vehicle with only a small amount left on the loan, it makes sense to keep paying it. If the vehicle is worth far more than what’s owed, you wouldn’t want to lose it over a few missed payments. Outside of these types of secured debts, however, paying bills immediately after a loved one’s death usually isn’t necessary and can even be a mistake.
The probate process is designed to manage a deceased person’s debts in their estate. Creditors will need to follow specific procedures to make their claims against the estate. This ensures that all debts are handled appropriately and you’re not unnecessarily paying anything.
In short, unless there’s a real risk of losing an important asset, it’s better to let the probate court sort out which bills need to be paid and when.
