How do utility bills get paid when waiting for house sale?

avdb

Sorry this has probably been answered before as it’s a pretty basic question I imagine.

My mum died and I am executor of her will. Her estate is split 50/50 between me and my brother.

She has a house maybe worth 400k (but it had equity released on it possibly 200k to pay back) plus £1000 in the bank, no real other assets.

My question is gas/electric/water/house insurance/council tax. How are these paid for whilst waiting to sell the house to release money? I read that the estate is responsible for paying them but what does that mean? I have access to my mother’s bank account, do I just let the money come out of that? But eventually the money there will run out, probably well before the house is sold.

Do these companies as standard allow the debt to accumulate and be paid on sale of the property?

I’ve read that I should not pay the bills personally from my own money or put anything into my name. Is that right? If I did have to use my own money to pay the bills would I be entitled to claim interest on the money I effectively loaned to the estate?

Thanks for any advice

flaneurs_lobster

Sorry for your loss.

All of the organisations you mention will have well-established procedures for dealing with this situation, you just have to make sure that they have all been informed.

But yes, they will generally allow accounts to be settled when the estate has the funds to do so when the property is sold.

The insurance company may have conditions if the house is not being lived in re visits/heating etc.

p00hsticks

Sorry for your loss.

You should inform your mothers bank that she has died and they will either freeze the account or pass the money over to you as executor and close it. Set up a separate bank account to hold the estate money.

If the house is now empty, then there should be a class F exemption on the property until six months after probate is obtained so no council tax wil lbe due until then.

Speak to the bereavement departments of the utility companies (water, gas, electricity) to let them know. They can put any charges on hold to be paid only when the house sale is complete.

The one thing you will need to find money for is house insurance - make sure the insurers know that the property is unoccupied. I found that the existing insurers would continue cover until the end of the year (although with certain extra conditions) but then I had to find specific cover for an unoccupied proerty (I used HomeProtect)

Glad

I echo the comment about house insurance. A family I know inherited a house and forgot to check on this, and the insurance payments didn't get paid. A pipe froze and burst in the attic and took out every bedroom ceiling and the majority of the ceilings downstairs too! Block wooden flooring all ruined, everywhere needed plastering. All had to be paid for out of the estate.

otb666

We found utilities wanted payment Gas every quarter electric monthly and water 6 monthly. This was mostly standing charge but gas has cost 400 over last 6 months as heating had to stay on 15oc as demanded by insurance company. Electric has been 25pm just standing charge. As no longer on monthly Direct Debit this has pushed the charges up. I found british gas and eon although sympathetic still seem to be taking advantage and charging for expensive standing charges on an empty property.

gplion55

If you follow the usual procedures and close accounts etc you should also establish an "Executors Account" with a bank. All residual funds will go in there and you can pay any bills from that. You can reclaim any costs you have made as an executor from the estate at a later stage.

Savvy_Sue

https://forums.moneysavingexpert.com/discussion/comment/81962222#Comment_81962222

Whereas I found everything went on hold until the property was sold. Water did not require any payment once we'd notified of the death, even though the water was still connected and occasionally being used! (No-one staying there, but even day visits required use of loo and kettle!)

Linton

https://forums.moneysavingexpert.com/discussion/comment/81963250#Comment_81963250

The same happened for us.