Who pays the mortgage and utilities while an estate is in probate in Delaware?

Short answer: When someone dies in Delaware, their home and its bills become responsibilities of the estate. The personal representative (executor or administrator) must protect estate property, which commonly means ensuring mortgage payments and utilities continue. If the estate has cash or the representative gets court authorization, bills are paid from estate funds. If payments stop, the lender can pursue foreclosure and utilities can be shut off. Act quickly to avoid those results.

Detailed answer

When a person dies in Delaware, title to their real property does not vanish. The deceased owner’s interest becomes part of the probate estate and the personal representative steps in to manage estate affairs. That role includes securing the home, protecting its value, and addressing ongoing obligations like mortgage payments, property insurance, taxes, and utilities.

Roles and legal authority

The personal representative derives authority from the probate process and any letters issued by the Register of Wills or the court. That authority permits the representative to collect estate assets and pay debts and expenses out of estate funds. For general information about probate administration in Delaware, see the Delaware Courts Register of Wills: https://courts.delaware.gov/registerwill/. For statutory rules on decedents’ estates, see Delaware Code, Title 12 (Decedents’ Estates): https://delcode.delaware.gov/title12/.

Mortgage payments

Mortgage debt is a secured obligation that attaches to the real property. Even during probate, the mortgage lender retains the right to enforce the mortgage if payments stop. Practically this means:

The personal representative should locate the mortgage statement and contact the lender immediately to report the death and learn the account status and options (forbearance, loan modification, escrow changes, etc.).
If the estate has liquid funds, the representative may pay the mortgage from estate accounts as an estate expense. If funds are insufficient, the representative should discuss options with the lender to avoid foreclosure.
If mortgage payments stop and the lender is not willing to work with the estate or beneficiaries, the lender may initiate foreclosure under applicable Delaware law, because the mortgage remains a lien on the property. For statutory context on real property matters, see Delaware Code, Title 25: https://delcode.delaware.gov/title25/.
If the personal representative sells the house during probate, sale proceeds typically first pay secured claims (including the mortgage) and approved estate expenses before any distribution to beneficiaries.

Utility bills (electricity, water, gas, trash, internet)

Utilities are treated as ongoing service contracts. Key points:

Utilities can be shut off relatively quickly after missed payments. The timeline depends on the utility provider’s policies and any regulatory rules under Delaware public utilities law. See Delaware Code, Title 26 (Public Utilities): https://delcode.delaware.gov/title26/, and the Delaware Public Service Commission: https://depsc.delaware.gov/.
The personal representative should contact each utility company to notify them of the death, provide account information, and arrange continued service or scheduled termination. In many cases the company will permit short-term continuation (or transfer service) if someone will take over payments.
If no one pays utilities and the company disconnects service, the property may be vulnerable to damage (e.g., frozen pipes in winter) or lose value, which harms the estate and beneficiaries.
If a beneficiary takes possession of the house before probate concludes, that person usually becomes responsible for utilities and should arrange to transfer accounts into their name or into the estate’s account as appropriate.

Paying bills from estate funds and accounting

The personal representative has a duty to pay valid estate expenses and creditor claims in the order required by Delaware law. Typical steps and considerations:

Open a dedicated estate bank account once appointed and deposit estate funds into it. Use that account to pay mortgage, insurance, and utilities to keep estate transactions separate.
Keep thorough records and receipts. The representative must account to the court and heirs for estate expenditures.
If estate funds are insufficient, the representative should seek court guidance before paying personal expenses out of personal funds in a way that could create personal liability. In many cases the court will allow reasonable advances, but the representative should document everything.

What if beneficiaries want the house?

If heirs intend to keep the property, they can agree to assume mortgage payments or refinance the loan in their own names. If they refinance or pay the mortgage, they will remove the mortgage lien or keep it satisfied. If heirs take possession without arranging payment and the mortgage becomes delinquent, they risk foreclosure and losing the home.

What if bills remain unpaid and the estate has no money?

If the estate lacks assets to pay secured debts, the lender may foreclose on the property to satisfy the mortgage. Unpaid utilities may become liens in some circumstances or lead to service termination. Creditors and the personal representative should follow Delaware probate claims procedures under Title 12 when asserting or paying claims: https://delcode.delaware.gov/title12/.

Practical timeline and action checklist

Within days: locate mortgage and insurance statements, secure the property, and contact the lender and utility companies to report the death.
Within weeks: file for probate and obtain letters authorizing the personal representative to act (see Register of Wills: https://courts.delaware.gov/registerwill/).
Ongoing: pay mortgage and utilities from estate funds when available, or arrange alternatives (heirs assume payments, refinance, or sell the property).
If payments lapse: work quickly with lenders and utilities to negotiate a short-term solution to avoid foreclosure or termination.

Helpful Hints

Contact the lender right away. Lenders often have specific procedures for deceased borrowers and may offer temporary accommodations.
Notify utility companies promptly to avoid unexpected shutoffs and to learn about transferring or terminating service.
Open a dedicated estate bank account and keep careful records of all payments and communications.
Keep the property secured and insured during probate to avoid damage and preserve value.
If you are a personal representative and the estate lacks funds, get court approval before using personal funds for estate expenses or before selling estate assets.
If beneficiaries want the house, consider refinancing the mortgage into their names before the estate runs out of cash.
Consult the Delaware Code for statutory requirements related to estates (Title 12), property (Title 25), and utilities (Title 26):
When in doubt, consult a Delaware probate attorney for guidance tailored to your situation—especially if foreclosure or contested claims are possible.

Disclaimer: This article provides general information about Delaware probate practices and is not legal advice. It does not create an attorney-client relationship. For advice about a specific situation, consult a licensed Delaware attorney.