How Are a Deceased Persons Debts Handled Before and During Probate?
If your loved one has died and a probate estate will be required, then you’ll need to understand how your loved one’s final bills and other debts will be handled before and during the probate process. Dealing With Bills Before Probate Prior to the probate estate being opened, the first step will be to make a complete list of the liabilities of the decedent, including: • Mortgages • Lines of credit • Condominium fees • Property taxes • Federal and state income taxes • Car and boat loans • Personal loans, including student loans • Storage fees • Loans against life insurance policies • Loans against retirement accounts • Credit card bills • Utility bills • Cell phone bills Once the list of liabilities has been compiled, divide them into two categories: • Liabilities that will be ongoing during probate (these are referred to as administrative expenses), and • Liabilities that can be paid in full once the probate estate is opened (these a
