Who pays household bills during probate?
When a loved one passes away, those responsible for managing their estate may find themselves asking, “Who pays bills during probate?” It's a common concern, especially when utility bills continue to accumulate after someone dies. From Council Tax to electricity and gas, bills do not stop simply because the homeowner has passed away. Understanding who pays bills during probate and what happens to utility bills after someone dies is essential to ensure the estate is administered properly and liabilities are handled promptly.
This article outlines which bills must be paid, how estate funds can be used, whether beneficiaries can contribute, and how government services like ‘Tell Us Once’ can help settle outstanding payments.
Which bills must be paid?
Even after someone has died, their property and services may continue to generate costs. The following household bills are typically still owed during the probate process:
Council Tax: Depending on whether the property remains occupied or vacant, liability may continue.
Electricity, gas, and water: If services remain active (e.g., to maintain the property), charges can accumulate.
TV licence and internet services: These should be cancelled or transferred, but if not done promptly, further bills may be issued.
Insurance premiums: Property insurance should be maintained throughout probate to protect the estate’s assets.
These bills are considered part of the estate’s liabilities and must be accounted for before distributing the inheritance to beneficiaries.
Using estate funds
Typically, household bills during probate are paid from the deceased’s estate. The Executor or Administrator (Personal Representative) is legally responsible for ensuring that any outstanding debts and expenses, including utility bills, are settled before any inheritance is distributed.
Accessing estate funds can be tricky until the Grant of Probate (if there is a Will) or Letters of Administration (if no Will exists) is obtained. In the interim, Personal Representatives (PRs) may:
Contact service providers: Many will place accounts on hold or allow interim payments.
Use estate accounts: Once probate is granted, funds from the deceased’s accounts can be used to settle ongoing or outstanding bills.
Request direct payments: Some banks may allow payment of urgent bills directly from the deceased’s account before probate.
PRs should keep a clear record of all bills paid and ensure they are settled in the correct order of priority, especially if the estate is insolvent.
Can beneficiaries contribute?
In some cases, beneficiaries may choose to pay household bills during probate themselves. This might occur when:
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The estate has insufficient liquid assets to cover bills immediately
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Beneficiaries wish to preserve the property (e.g., to avoid disrepair or insurance lapses)
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There is a delay in accessing estate funds
While this is permissible, any contributions should be carefully documented. Beneficiaries may be reimbursed from the estate once funds are available, but this is at the discretion of the PRs and subject to estate solvency. It is advisable to seek legal guidance before making or accepting any personal payments toward estate expenses.
Tell Us Once service - Settling of bills due before the deceased passed away
The Tell Us Once service, offered by the UK government, is an efficient way to notify multiple government departments of a death in one step. This includes:
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The Department for Work and Pensions (DWP)
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HM Revenue and Customs (HMRC)
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Local council services (e.g., Council Tax, housing)
While the service does not directly handle the payment of utility or household bills, it helps ensure that services are halted and relevant billing departments are informed. This can prevent new charges from being added after death and assist with settling bills due before the deceased passed away. Notifying all relevant parties promptly is essential in preventing unnecessary charges and complications during probate.
Conclusion
So, who pays bills during probate? In short, the estate is responsible for covering any utility bills after someone dies, and other household expenses incurred before and during the probate process. Personal Representatives must ensure these are paid in the correct order, using estate funds where possible. Beneficiaries may contribute if necessary, but careful documentation is key.
Navigating these responsibilities can be challenging, but with clear planning and professional guidance, the estate can be settled fairly and lawfully.