If you are acting as the executor of an estate, this question may already be on your mind – how will you pay the bills owed by the estate? Assuming that probate hasn’t been granted and you want to avoid racking up unnecessary debt by paying the bills on time – you have two options.

Deceased’s Bank Account 

Your first option is simply requesting bank drafts from the deceased’s bank account. Probate will not be necessary as long as you provide appropriate documentation, such as proof of death and a notarized copy of the will, and there is enough cash to cover the bills. Make sure you are cordial and friendly with the bank teller, as you may need to come back to them on many more occasions. 

Loan

What if the deceased does not have any money in their bank account? Maybe they invested all their money to buy three Muskoka cottages for their daughters. Well, you have the option of taking out a loan. Google “estate loans for executors” and a number of choices pop up. You will find that many companies are happy to loan you cash, at a cost. 

Of course, you don’t have to source the loan externally. Perhaps the beneficiaries are happy to provide a loan, or maybe you yourself have enough money on hand to pay the expenses on behalf of the estate. In such a case, make sure you keep appropriate documentation and reimburse yourself or the beneficiaries once the estate has sufficient funds. 

Remember, that while it is up to you, as the executor, to find the loan, you also have a fiduciary duty to the beneficiaries. As such, make sure to find loans with the lowest interest rate. 

The Bottom Line

It’s almost impossible to administer an estate without having to pay its bills at some point in time. If bills are due and you don’t have probate, you can either find a loan or request bank drafts from the deceased’s bank account. No matter the option you choose, however, make sure to keep track of your own executor’s compensation for the diligent work administering the estate.