The Rule: The Estate Pays — Not You
You are not personally responsible for the deceased's bills unless you co-signed, hold a joint account, or signed a contract (like the funeral home agreement). The ESTATE pays from the deceased's bank accounts and assets.
But some bills need to keep being paid to protect estate assets — like the mortgage (protects the house) and insurance (protects the property). Knowing WHICH bills to keep paying is the key.
"Don't pay everything. Don't ignore everything. The list below tells you exactly what to do with each bill."
🟢 Keep Paying — Protect the Assets
These bills protect property, prevent liens, or maintain essential services. Pay from the estate bank account (or the deceased's account if the executor has access). If no estate account exists yet, the executor or family may need to cover these temporarily and get reimbursed later.
| Bill | Why Keep Paying | What Happens If You Don't |
|---|---|---|
| Mortgage | Protects the house from foreclosure | Bank starts foreclosure after 90-120 days of missed payments |
| Homeowner's insurance | Protects the house from damage, theft, liability | Uninsured house = unprotected asset. Lender may force-place expensive insurance |
| Property taxes | Prevents tax liens on the house | Tax lien → potential tax sale of the property |
| Car insurance (if keeping) | Legal requirement + protects the asset | Uninsured vehicle = liability risk. Can't legally drive it |
| Car loan (if keeping) | Protects from repossession | Lender repossesses the car after 60-90 days |
| Utilities (electric, gas, water) | Keeps the house habitable and prevents damage | Pipes freeze (winter). House becomes uninhabitable — reduces sale value |
| HOA / condo fees | Prevents liens and fines | HOA can place a lien on the property, blocking sale |
| Storage unit | Protects stored belongings | Storage company auctions contents after 30-90 days of non-payment |
| Health insurance for dependents | Surviving spouse/children may still be covered | Coverage lapses. COBRA or marketplace enrollment needed |
How to pay: Use the deceased's bank account (if the executor has access) or the estate bank account. Keep ALL receipts — the estate reimburses any personal funds used to cover these bills.
🟡 Cancel — No Longer Needed
These services are only for the deceased and serve no purpose after death. Cancel to stop charges from accumulating.
| Bill | How to Cancel | Notes |
|---|---|---|
| Cell phone | Call carrier with death certificate | Download photos/data from the phone BEFORE canceling |
| Cable / satellite TV | Call provider. Return equipment. | Negotiate early termination fee waiver with death certificate |
| Streaming services | Log in and cancel, or call customer service | Check for annual prepaid — may get partial refund |
| Gym membership | Visit or call. Provide death certificate. | Many gyms require in-person cancellation or certified letter |
| Magazine / newspaper | Call or email publisher | May receive partial refund for remaining subscription |
| Internet (if house vacant) | Call provider. Return modem/router. | Keep active if someone is living there or house is being shown |
| Landline phone | Call provider to disconnect | |
| Amazon Prime / memberships | Log in and cancel | Check for annual prepaid — refund may be available |
| Meal delivery / subscription boxes | Log in or call to cancel | |
| Club memberships | Contact the club. Provide death certificate. | Some may have resignation procedures or final dues |
| Unused insurance policies | Call insurer. Cancel policies with no remaining value. | Do NOT cancel life insurance — that's a payout, not an expense |
When to cancel: Within the first 2 weeks. Every day you wait = another day of charges the estate absorbs.
Before canceling ANYTHING: Check if the service has a contract with early termination fees. Most companies waive these with a death certificate — but ask explicitly.
🔴 Don't Pay — Let the Estate Handle Through Probate
These are the deceased's personal debts. They're paid from the estate during probate — in legal priority order. You do NOT need to pay these out of pocket. Do NOT make any payments on these yourself.
| Bill | What to Do | Why |
|---|---|---|
| Credit card bills | Notify issuer of death. Direct to executor. Do NOT pay. | Unsecured debt — paid from estate last. If estate is empty, written off. |
| Medical bills | Notify provider. Direct to executor. Do NOT pay. | Unsecured debt — same as credit cards. Do NOT let hospitals pressure you. |
| Personal loans | Notify lender. Direct to executor. Do NOT pay. | Unsecured — estate pays or it's written off. |
| Payday loans | Ignore or notify. Direct to executor. | Lowest priority debt. Almost always written off. |
| Collections accounts | Do NOT engage. Direct to executor. | Collectors will call. Say: "Direct all claims to the estate executor." |
| Federal student loans | File for death discharge (free). | Completely forgiven at death. Nobody pays. |
| Old utility bills (deceased's name only) | Notify. Direct to executor. | Estate responsibility — not yours. |
⚠️ CRITICAL: Making even ONE payment on these debts can create legal liability where none exists.
A payment can restart the statute of limitations and imply acceptance of the debt. Pay NOTHING. Direct EVERYTHING to the executor.
Does debt die with you? → · Credit card debt after death →
The First 30 Days — What to Do and When
Week 1
- ☐ Keep paying mortgage, insurance, and utilities (don't let anything lapse)
- ☐ Cancel cell phone, streaming services, and subscriptions
- ☐ Notify credit card companies of the death (but do NOT pay)
- ☐ Notify Social Security (1-800-772-1213)
- ☐ File life insurance claims
- ☐ Begin forwarding mail to yourself or the executor
Week 2
- ☐ Cancel gym, club memberships, and unnecessary services
- ☐ Return cable/internet equipment
- ☐ Open an estate bank account (all future bill payments come from here)
- ☐ Transfer automatic payments on "keep paying" bills to the estate account
- ☐ Notify medical providers of the death
Weeks 3–4
- ☐ Review ALL automatic payments on the deceased's bank accounts and credit cards
- ☐ Cancel or transfer each one
- ☐ File for student loan discharge (if applicable)
- ☐ Apply for Social Security survivor benefits
- ☐ Begin the probate process (if applicable)
Months 2–6
- ☐ Continue paying mortgage, insurance, property taxes, and utilities from estate account
- ☐ Let the executor manage creditor claims through probate
- ☐ Do NOT pay unsecured debts (credit cards, medical, personal loans) out of pocket
- ☐ Keep records of every payment made from the estate
The Automatic Payment Trap
The deceased's bank account and credit cards may have DOZENS of automatic payments you don't know about.
Within the first 2 weeks, log into (or request statements for) every bank account and credit card. Look for recurring charges:
A deceased person with 15 auto-payments averaging $20/month loses $300/month — $3,600/year — from their estate. That's $3,600 the heirs don't inherit.
"Go through the bank statements line by line. Every recurring charge is either a bill you need to keep paying, a service to cancel, or a charge to dispute. Don't let the estate bleed $300/month because nobody checked."
Who Actually Pays the Bills?
The executor is responsible for managing bill payments — from the ESTATE's money, not their personal money.
Payment source priority:
- The deceased's bank accounts (executor gains access with Letters Testamentary)
- The estate bank account (opened during probate)
- Sale of estate assets (if liquid funds are insufficient)
- Executor's personal funds as LAST RESORT (reimbursed from the estate)
If you're paying bills out of pocket temporarily:
- • Keep EVERY receipt
- • Document each payment (date, amount, what it was for)
- • The estate reimburses you during probate
- • These reimbursements are estate administration expenses — paid BEFORE debts and distributions
"You may need to cover the mortgage or utilities for a month or two before the estate account is set up. That's normal. Keep receipts. The estate pays you back."
Special Situations
The First Bill That Arrives: The Funeral. The Last Bill Paid: Credit Cards.
The funeral ($7,848+) is the first expense — paid before the estate even opens. Final expense insurance covers it in 24-72 hours so your family isn't scrambling.
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Frequently Asked Questions
You May Also Find Helpful:
Executor Duties Checklist
Every task the executor needs to complete — in order — from day 1 through final distribution.
Read →Does Debt Die With You?
Which debts disappear at death, which survive, and who's responsible for each type.
Read →Letter of Instruction Template
The document that tells your executor where everything is — accounts, bills, passwords, wishes.
Read →