It can be a tough time to deal with the death of a loved one. Along with the grief you feel, you may worry about the property of your relative passing through probate. This can be particularly stressful if you are set to inherit the home of your family member.
Bankrate explains that a residence in probate will generate various costs. It is the responsibility of the estate executor to keep on top of these expenses.
Utility bills and taxes
The estate must resume the common costs associated with the home, such as the utility bills and the property taxes. However, if no one is living in the residence during the probate period, the executor may be able to save money by turning off electricity and gas until a new owner can take over.
Sometimes the owner of a house dies before paying off the mortgage. If this is the case, the executor must continue to make payments until a new owner can take over the mortgage.
An outstanding mortgage can make the inheritance process more complicated. If you are the potential new owner, you may have to speak with the lender who holds the mortgage and work out how you can put the loan under your name and assume the mortgage payments.
Working out a funding mechanism
The estate executor must pay home expenses from the assets of the estate. This can be concerning to you as a beneficiary since such payments diminish your potential inheritance.
To avoid depleting their estate, some people set aside money in their estate plans for mortgage payments and utility expenses. Creating a funding mechanism in your estate plans may alleviate the worries of those who would inherit from you.