When someone dies, the bills do not stop. Mortgage statements, credit card balances, medical invoices, and tax notices keep arriving, and the person left in charge often wonders whether they are expected to pay them.
In Pennsylvania, debts are generally paid from the deceased person's estate, not from the family's own pockets. But an executor must handle those debts in the right order, notify the right people, and take care of the home while the estate is open. Mistakes can delay the administration and may lead to personal liability.
This guide explains how Pennsylvania prioritizes debts, why publishing notice to creditors matters, and what to know about selling real estate during estate administration.
Who Pays the Deceased Person's Debts in Pennsylvania?
The short answer is that the estate pays, and only to the extent it has assets. Family members are generally not personally responsible for a loved one's credit cards, personal loans, or medical bills simply because they are related. (There are exceptions, such as a co-signer or a joint account holder.)
When an estate has enough money, the order of payment rarely matters. When it does not, Pennsylvania law sets a priority list.
The Order of Priority
Under 20 Pa.C.S. § 3392, if estate assets are not enough to pay everything in full, the personal representative generally must pay claims in this order:
- Costs of administration, including court costs, publication fees, and attorney and executor fees.
- The family exemption, a limited amount that may be set aside for a surviving spouse or children.
- Funeral and burial costs, along with medical, hospital, and nursing expenses from the last six months of life.
- The cost of a grave marker.
- Rent for the decedent's residence during the six months before death.
- Claims by the Commonwealth and local governments, such as unpaid taxes.
- All other claims, which is where most credit card balances, personal loans, and other unsecured debts fall.
Claims owed to the United States government may take precedence over this list. Secured debts, such as a mortgage or car loan, are tied to the property that secures them and are handled differently.
This is why an executor should not simply pay bills as they arrive. A credit card company that sends a demand letter in the first month may be near the bottom of the line.
What Does "Insolvent" Mean?
An estate is insolvent when its assets cannot cover its debts and expenses. In that case, creditors in a higher class are paid first. Creditors in the same class share what is available proportionally, and those at the bottom may receive little or nothing.
If you believe an estate may be insolvent, slow down. Do not distribute anything to beneficiaries, do not pay lower-priority creditors ahead of higher ones, and keep careful records. An executor who pays claims out of order or makes early distributions may face personal liability for the shortfall.
The safest approach is to identify every debt, understand where each one falls in the order of priority, and avoid paying anything out of order without legal guidance.
How and Why to Publish Notice to Creditors in Pennsylvania
One of the first tasks after an executor receives letters from the Register of Wills is publishing notice of the appointment. It may feel like a formality, but it is one of the most important protections an executor has.
What Pennsylvania Requires
Under 20 Pa.C.S. § 3162, the personal representative must advertise the grant of letters immediately after appointment. The notice generally must run once a week for three successive weeks in two places:
- A newspaper of general circulation published at or near the place where the decedent lived.
- The legal periodical, if any, designated by local court rule for legal notices.
The notice must include the personal representative's name and address. It also must ask anyone with a claim against the estate to present it, and ask anyone who owed money to the decedent to pay without delay.
Most counties have a local legal journal, and your county's Register of Wills or an estate attorney can tell you which newspaper and journal to use. Keep the proofs of publication. You may need them later.
Why Publication Matters
Publication does not erase debts. Its main purpose is to give creditors a public opportunity to come forward and to start the time period that helps protect the executor.
In general, an executor who distributes estate assets more than one year after the first complete advertisement is protected from liability to creditors whose claims were never presented. Without proper publication, that protective period may never begin.
This matters because beneficiaries often want their inheritance quickly, and an executor who distributes too soon may later face a valid claim from a creditor who was never notified.
Do Not Rely on Publication Alone
Publication is not a substitute for common sense. If you know about a creditor, such as a mortgage lender, a hospital, or a credit card company, it is generally wise to notify them directly as well.
Secured creditors, tax authorities, and certain other claimants may be treated differently from ordinary unsecured creditors. Review each claim carefully, keep a record of what was received, and do not assume that every demand is valid or must be paid in full.
Publishing notice is inexpensive compared with the risk of paying a claim twice or being surprised after the estate has been distributed.
Selling Real Estate During a Pennsylvania Estate Administration: Step by Step
For many families, the house is the largest asset in the estate and the biggest source of stress. Selling it involves legal steps that do not apply to an ordinary sale.
1. Confirm Your Authority and the Will's Instructions
Start by confirming that you have letters testamentary or letters of administration. Then read the will carefully. It may give the executor a power of sale, leave the house to a specific person, or say nothing at all about real estate.
The answer affects whether court involvement is needed.
2. Decide Whether Orphans' Court Approval Is Necessary
In many Pennsylvania estates, a personal representative can sell real estate that is not specifically left to a named beneficiary without first getting a court order. The same is often true when the will expressly grants a power of sale.
Court approval under 20 Pa.C.S. § 3353 may be required or advisable when the executor lacks authority to sell, the will denies the power, the house was specifically devised, or the sale should have the effect of a judicial sale. A petition may also make sense when family members disagree and the executor wants the protection of a court order.
If a bond was required, the court may need to approve additional security before the executor can receive sale proceeds.
3. Value the Property and Prepare It for Sale
Get a date-of-death appraisal. It will be useful for the inheritance tax return and for determining the property's tax basis later.
Then decide how to market the home. Many executors work with a real estate agent who has experience with estate sales. Buyers and title companies will usually ask for copies of the letters and may have additional document requirements.
4. Complete the Sale and Transfer the Deed
At closing, the executor signs the deed as personal representative of the estate, and the deed is recorded with the county Recorder of Deeds. A sale to a buyer is generally subject to state and local realty transfer tax, which is often negotiated between buyer and seller.
The buyer's title company may also ask how the decedent's debts and Pennsylvania inheritance tax have been addressed. Proceeds are deposited into the estate account, not paid to the executor or beneficiaries personally.
If the house is not being sold but is going to a beneficiary, a deed from the personal representative to that person is generally used to transfer title.
Taking Care of the House While the Estate Is Open
Settling an estate can take months, and the property still needs attention during that time.
- Mortgage: Keep making payments if you can. Falling behind can lead to default and foreclosure, even though the estate is open. Contact the lender early.
- Insurance: Notify the homeowner's insurer of the death. Many policies limit coverage when a home is vacant, so ask about vacancy rules.
- Utilities and upkeep: Keep heat, electricity, and water in place to prevent damage, and maintain the lawn and exterior.
- Property taxes: Pay school, county, and municipal taxes on time to avoid liens and penalties.
- Cleanout: Do not discard anything quickly. Photograph and inventory the contents first, set aside valuables and documents, and give beneficiaries a chance to claim items named in the will. Disposing of property without records can lead to disputes.
The estate should pay these carrying costs from estate funds, and the executor should keep receipts for every expense.
Get Help With Pennsylvania Estate Debts and Real Estate
Handling creditors and real estate is often the most stressful part of serving as an executor. The order of payment, the publication requirements, and the rules for selling a home all carry consequences if they are handled incorrectly.
Whether you are administering an estate for the first time or are worried an estate may not have enough to pay its bills, getting guidance early can help you protect the estate and yourself.
Contact The Law Offices of Anthony Urban, P.C., to discuss your Pennsylvania estate administration concerns and learn what steps may be available under the law.
This article provides general information about Pennsylvania law and is not a substitute for legal advice regarding a specific estate or dispute.