Losing a loved one is a profoundly emotional experience, and it often brings with it a host of practical responsibilities. One challenging task is determining which bills must continue to be paid and which can be stopped. Understanding your obligations is essential for avoiding unnecessary stress and safeguarding the estate from financial missteps during an already overwhelming time.
Essential Bills That Must Be Paid
Some expenses require immediate attention to protect the estate and prevent complications:
Mortgage and Property Taxes: If the estate includes real property, it is important to keep up with mortgage payments and property taxes. This ensures that the property is not at risk of foreclosure or tax liens. Maintaining these payments is especially crucial if heirs intend to keep the property or if it will be sold as part of settling the estate.
Utility Bills: If the home will remain occupied by surviving family members or must be maintained for a future sale, utilities such as electricity, water, gas, and internet should continue to be paid to avoid disruption of essential services.
Insurance Premiums: Homeowners insurance, auto insurance, and any other necessary coverage should remain active to protect estate assets against loss or liability.
Ongoing Medical Bills: Medical expenses incurred before death are legitimate debts of the estate and should be paid from estate funds, not by family members personally.
Funeral and Burial Costs: These costs are typically given priority and paid directly from the estate.
Handling Credit Card Debt and Personal Loans
Credit card balances, personal loans, and other unsecured debts are generally paid from the estate. Family members are not personally responsible for these debts, unless they co-signed or are joint account holders, and should not pay these bills from their personal funds. The executor or personal representative should pay these obligations using estate assets. If the estate lacks sufficient funds, Florida law determines the order in which creditors are paid.
Stopping Automatic Payments
it is important to contact banks and credit card companies to stop automatic payments and subscriptions. A copy of the death certificate will be required to close accounts properly. This includes canceling streaming services, gym memberships, phone plans, and any other recurring charges.
Addressing Joint Accounts and Co-Signed Debts
If your loved one had joint credit cards, co-signed loans, or jointly owned property with attached debt, the surviving account holder or co-signer remains responsible for those obligations. Joint debts do not simply disappear after death.
Beware of Debt Collection Scams
Some dishonest debt collectors may try to persuade family members to pay debts for which they are not legally responsible. Remember, you are not personally liable for your loved one’s debts unless you were a co-signer or joint account holder. If there is uncertainty about a debt claim, consult an attorney before making any payments.
Role of the Estate’s Personal Representative
The executor or administrator is responsible for identifying all debts, notifying creditors, and paying valid claims from estate assets. If you have been named to this role, it is wise to work with an experienced probate attorney to ensure you fulfill your duties correctly and protect yourself from personal liability.
Seek Professional Guidance
Managing financial obligations in the aftermath of a death can feel overwhelming, especially when emotions are high. If you are unsure which bills to pay, how to handle creditor claims, or what your legal responsibilities are as an executor or family member, professional assistance is available.
These obligations can vary between states, so if you are in Florida and need guidance, contact us at 954-247-1297 to schedule a consultation. Our Florida-based probate attorneys are ready to guide you through the process with clarity and compassion.
