Who Pays the Bills When Mom and Dad Pass Away?
Losing a parent is a deeply emotional experience. Amidst the grief, there are practical matters that demand attention, especially when it comes to handling the family home and the bills that keep arriving even after a loved one has passed away. Many families ask: Who’s responsible for paying the bills now? What do we do about the house? Can I be reimbursed for any expenses I cover?
These are legitimate concerns, and understanding the roles of the executor of the estate and the successor trustee of a revocable trust is key to managing them correctly.
Who’s Responsible for the Bills?
When a person passes away, their financial obligations don’t immediately disappear. Utility bills, property taxes, mortgage payments, insurance premiums, and home maintenance costs can continue to accrue. So, who pays?
If your parents had a will, the executor of the estate is legally responsible for managing these matters. If your parents placed the home in a revocable living trust, the successor trustee takes on this role.
In either scenario, the executor or trustee must use estate or trust funds to settle debts and pay ongoing expenses until the estate is closed or the property is transferred or sold. These fiduciaries have a legal duty to act in the best interest of the estate or trust and its beneficiaries.
What Happens to the House?
The future of the family home depends on how it was owned:
If it’s in your parents’ names alone, it becomes part of the probate estate. With court approval if necessary, the executor manages it and decides whether to maintain, sell, or distribute it according to the will.
If it’s in a revocable living trust, it bypasses probate, and the successor trustee immediately steps in to manage the property per the trust’s terms.
Regardless of ownership, it’s crucial that the property is protected during this transitional period. That means keeping insurance current, securing the home, maintaining utilities (especially if it’s vacant), and handling urgent repairs.
Who Can Access the Home?
A common point of tension in families is who’s allowed to enter and manage the home after a parent dies. Legally, only the executor or the successor trustee has the authority to access, inventory, and remove personal property from the home during estate or trust administration.
Family members should avoid entering the property or removing items without explicit permission. Doing so can complicate the estate process and create potential legal disputes later on.
Can I Be Reimbursed If I Pay Bills?
It’s not unusual for a family member to step in and pay a utility bill, property tax, or minor repair to keep things running smoothly. If this happens, keep detailed records and receipts.
The good news is that the estate or trust can reimburse legitimate expenses for preserving estate property. The executor or trustee will review these expenses and, if appropriate and well-documented, issue reimbursement once estate funds are available.
That said, it’s always wise to consult with the executor or trustee before paying out of pocket to avoid misunderstandings about what qualifies for reimbursement.
Final Thoughts
Dealing with the financial aftermath of a parent’s passing is a delicate and often confusing process. Understanding the distinct responsibilities of the executor and successor trustee — and respecting those legal roles — helps protect family relationships and ensures the estate is handled properly.
If you find yourself in this situation, consider consulting an estate attorney or financial advisor familiar with local laws. A little guidance can go a long way toward managing responsibilities, avoiding conflicts, and honoring your parents’ legacy.
This is intended for informational purposes only. You should not assume that any discussion or information contained in this document serves as the receipt of, or as a substitute for, personalized investment advice from Savant. Please consult your investment professional regarding your unique situation.
Alaina B. Davalos
Wealth Transfer Advisor
JD