After Someone Dies, Who Pays Their Bills?

If a family member has passed away, there’s a possibility that they’ve left some unpaid bills. If this is the case, who pays them, or do they need to be paid at all? It’s an issue few people look forward to dealing with, but it’s an essential part of settling an estate. A lawyer who handles probate matters can tell you what the law says and provide guidance on handling unresolved expenses.

Who’s Responsible for the Remaining Bills?

Typically, the estate of the decedent—the person who passed away—is responsible for paying any outstanding bills. Among the various tasks that fall to the Executor of the Will, one is paying all bills and settling and closing accounts.

Before the Executor can disburse funds to beneficiaries, they first must take care of outstanding debts and balances. Only when there are no more unpaid bills can the named beneficiaries receive the remaining funds and property according to the Will’s specifications.

What If Someone Dies Without Leaving a Will?

Creating a Will before you pass on ensures that you have the ultimate say over what happens to your estate, particularly how your unpaid bills will be taken care of. Without a proper Will, the legal system will take charge of your estate and final expenses, not your family.

In the absence of a Will, the court typically appoints someone to be the Administrator of the estate after approving their application. This person may be the next of kin, but that’s neither a requirement nor necessarily the case.

Also, the court will likely place your estate in probate, which typically lasts six months. During this period, creditors can make a claim against your estate to pursue payment for unpaid debts. The Administrator is responsible for allocating funds from the estate to take care of left-over bills.

What If There’s Not Enough Money to Pay Off Debts?

An estate’s liabilities may exceed the monetary worth of the assets. What this means is that there’s not enough money to cover the remaining expenses, debts, and bills. In this case, the Administrator may ask the court to declare the estate insolvent, which is akin to filing for bankruptcy.

With insolvency, the court can determine the order in which an estate repays debts. Deciding which bills to prioritize is based on the amount due and the class or type of creditor seeking payment. Once the Administrator pays off the first-priority debt, they distribute the remaining money according to which expense has the next priority, and so on.

A Probate and Estate Lawyer in Cincinnati Can Help

Handling the finances after a loved one’s death can seem complex. It’s understandable to worry about lingering debts and whether there’s enough money to pay them off. If your spouse or close family member has passed on, the probate specialists at Donnellon, Donnellon & Miller can reduce the stress and uncertainty you might feel about settling the estate. If you have questions about the probate process or handling remaining bills, contact our office at 513-891-7087 or use our online contact form.