What happens to mortgage payments and utilities while an estate is in probate in Georgia?

Short answer: During probate in Georgia, the estate (through the personal representative) is generally responsible for maintaining the decedent’s assets and paying necessary expenses — including mortgage payments, property insurance, property taxes, and utility bills — if estate funds or income from the estate are available. If bills are not paid, creditors (including mortgage lenders) can pursue collection or foreclosure, and utility companies can interrupt service. The personal representative should act quickly to preserve estate property and avoid loss.

Detailed answer

1. Who manages the decedent’s bills during probate?

When someone dies, the court usually appoints a personal representative (sometimes called an executor or administrator). That person gets legal authority to manage estate property, pay debts, and handle everyday expenses that preserve estate value. The personal representative’s authority and duties are set out under Georgia probate law; see Georgia Code Title 53 for statutes governing wills, administration, and the duties of personal representatives: O.C.G.A. Title 53.

2. Mortgage payments

• Mortgage is a secured debt tied to real property. Even after death, the mortgage remains and must be paid to avoid default and possible foreclosure.
• If the estate has cash or liquid assets, the personal representative should use estate funds to keep mortgage payments current as part of preserving estate property (paying debts and expenses that protect estate value).
• If the home passes immediately by joint tenancy, rights of survivorship, or beneficiary designation, responsibility may shift to the surviving owner(s). But if the home becomes estate property, the estate (via the personal representative) is responsible until title transfers to heirs or a buyer.
• If there are not enough estate assets to pay the mortgage, the lender can enforce its mortgage rights. In Georgia, lenders may proceed under the deed of trust or mortgage terms (including foreclosure) according to applicable law and the loan documents. Contact the mortgage servicer right away to explain the situation; many servicers offer options (forbearance, loan modification, or short sale) when a borrower dies.

3. Utilities (electricity, gas, water, phone, internet)

• Utility companies treat accounts as contracts. After death, service providers often require a death certificate and proof of authority (e.g., letters of administration) before transferring or re-opening accounts in the estate or in an heir’s name.
• The estate should pay ongoing utilities required to maintain property (heat to prevent freezing, electricity to protect refrigeration or security systems, water if necessary). Failure to pay can lead to service disconnection and property damage, which reduces estate value.
• If an heir or occupant wants to continue living in the home, the utility company may require the occupant to put the account in their own name and accept personal responsibility for future bills.

4. Order of priority: what gets paid first?

Georgia law establishes rules for paying debts and administration expenses from the estate. Administrative expenses necessary to preserve estate property (including payment to prevent foreclosure, insurance, and utilities) are typically priority claims that the personal representative should address early. See general provisions in Georgia probate law for paying creditors and expenses: O.C.G.A. Title 53.

5. Practical consequences if bills are not paid

• Mortgage: continued nonpayment can lead the lender to accelerate the loan and initiate foreclosure under the mortgage or deed of trust. Timelines, notices, and procedures depend on the loan documents and applicable Georgia law.
• Utilities: companies may disconnect service for nonpayment. Disconnection can cause property damage (burst pipes, spoiled food) and decrease estate value.
• Insurance: if homeowner’s insurance lapses, the estate risks unreimbursed loss from fire, theft, or storm damage.

6. What the personal representative should do first

1. Locate the will (if any) and file for appointment as personal representative with the probate court in the county where the decedent lived.
2. Obtain certified copies of letters of administration or letters testamentary from the probate court—many creditors and utilities will request these.
3. Make an inventory of estate assets and liabilities.
4. Contact the mortgage servicer immediately. Provide the documents they request and ask about payment grace periods, hardship or bereavement policies, and options to avoid foreclosure.
5. Contact utility companies to give notice of the death, provide authority documentation, and arrange to keep services necessary for property protection. Ask whether the company will allow the estate to be billed or whether an occupant must put services in their name.
6. Set up an estate bank account to collect estate income and pay legitimate estate expenses, keeping accurate records of all transactions.

7. What family members or heirs should do

• Do not assume you can stop automatic payments or keep utilities on without checking with the personal representative. Unauthorized use or payment disputes can cause problems.
• If you plan to move into the property and continue mortgage payments, get clear written agreement and consider getting the lender’s approval or having your name added to the mortgage or deed (this usually requires refinancing or transfer steps).
• Keep copies of death certificate and proof of authority handy when contacting companies.

8. If the estate can’t pay secured debts

If the estate lacks sufficient assets to satisfy secured debts like a mortgage, the creditor’s security interest generally survives and the lender may enforce its security (foreclosure or repossession) under Georgia law and the loan documents. Heirs who accept property subject to a mortgage may inherit the obligation to pay it (or choose to let the lender foreclose and remove the lien). The personal representative must follow statutory procedures for notice to creditors and handling insolvent estates.

Helpful Hints

• Act quickly. Early contact with the mortgage servicer and utility companies often prevents foreclosure and disconnection or reveals accommodations.
• Gather key documents: death certificate, will, mortgage note and deed (or deed of trust), insurance policies, and recent billing statements.
• Open an estate checking account to separate estate funds from personal funds and to demonstrate proper administration.
• Continue homeowner’s insurance and property taxes while property remains in the estate. Insurance lapse can mean unrecoverable losses.
• Keep detailed records of all communications and payments. These records protect the personal representative against later creditor or beneficiary disputes.
• If someone is living in the home, clarify whether they are doing so as a guest, tenant, or heir and obtain written agreements for payment responsibilities.
• Consider temporary solutions like short-term loan modifications, forbearance, or estate-funded payments while longer-term decisions (sale, refinance, transfer) are made.
• When in doubt, consult a Georgia probate attorney to guide administration steps, creditor priority, and options for preserving estate value.

Resources and statutes

Georgia probate statutes and code provisions addressing wills, administration, and duties of personal representatives are in O.C.G.A. Title 53: https://www.legis.ga.gov/legislation/ocga/title/53. For local procedures, contact the probate court in the county where the decedent lived or visit the Georgia Courts site: https://georgiacourts.gov/.

Disclaimer: This article provides general information about Georgia probate practice and is not legal advice. It does not create an attorney-client relationship. For advice specific to your situation, consult a licensed Georgia attorney who handles probate and estate administration.