To protect your safety in response to the threats of COVID-19, we are offering our clients the ability to meet with us in person, via telephone or through video conferencing. Please call our office to discuss your options.

How are mortgages handled in estate administration?

The family home is a major asset for most Americans. Yet it’s becoming increasingly uncommon for aging Americans to own their home outright. Generations ago, a mortgage-free retirement was the norm. Now, it’s a rarity.

As a result, estates frequently include mortgaged real property. Executors are responsible for handling the disposition of the property and any debts that go along with it.



Keeping payments current

Mortgages don’t simply disappear when homeowners pass away. The payments become administrative expenses incurred by the estate. The executor must keep payments current while the estate administration or probate proceedings are underway.

Missed payments can result in penalties or even foreclosure (which can also expose the executor to personal liability for failure to uphold their fiduciary duties). Additionally, because mortgages are secured debts, they take priority over unsecured debts like medical bills or credit card payments.

Determining the final disposition

Ideally, an estate plan will determine the final disposition of the home and mortgage. There are numerous approaches to doing so. For example:

  • The estate plan might require the sale of the property to satisfy the mortgage.
  • It might transfer the property outside of probate through a trust or joint tenancy.
  • It might direct the executor to apply other estate assets toward the mortgage.
  • More sophisticated estate plans might establish a trust for the maintenance of the home and payment of administrative expenses, including the mortgage.

Unless the home is transferred outside of probate, the probate court will supervise and approve the disposition of the home, mortgage, and other estate assets and debts.

Navigating special circumstances

Of course, every situation is unique, and many estates involve special circumstances. What if the home is underwater, for example? What if a dispute erupts between beneficiaries? Because so much can go wrong – and so much is at stake – knowledgeable legal guidance is critical during the estate administration and probate process.

No Comments

Leave a comment
Comment Information

Request Your Free Telephone Consultation

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

This site uses Google's Invisible reCAPTCHA, which is subject to Google's Privacy Policy and Terms of Use.


North Office
950 S. Winter Park Dr
Suite 290
Casselberry, FL 32707

Toll Free: 888-681-4389
Casselberry Law Office Map

South Office
14115 Town Loop Blvd #300
Orlando, FL 32837

Toll Free: 888-681-4389
Orlando Law Office Map

At Korshak & Associates, P.A. we love feedback from our clients. Please take a moment and tell us how we’re doing!

Review Us