Jan192026
Probate Q&A Series

Who is responsible for ongoing costs like property taxes, insurance, utilities, and maintenance when someone has the right to live in the house? – North Carolina

Short Answer

In North Carolina, when a will gives someone the right to live in a house for life (often treated like a life estate), that person is generally responsible for the ongoing, day-to-day costs tied to living there—especially property taxes and routine upkeep. North Carolina law specifically places the duty to pay property taxes on the life tenant. Insurance, utilities, and ordinary maintenance are usually handled the same way unless the will says otherwise or a court order allocates costs differently.

Understanding the Problem

In North Carolina probate, a common question is: when a will gives a relative the right to live in a decedent’s house, who must pay the ongoing bills while that right continues? The decision point is whether the “right to live there” functions like a life estate (a present right to possess the home) with the beneficiary holding the future interest. The practical trigger is that property taxes and other carrying costs keep coming due even while the estate is open and the home has not been fully distributed.

Apply the Law

North Carolina usually treats a will’s “right to live in the home” as a possessory interest similar to a life estate unless the will clearly creates a different arrangement. In that setup, the person living in the home (the life tenant) has the present right to use and occupy the property, and the beneficiary who receives the home afterward (the remainderman) holds the future ownership interest. As a baseline rule, the life tenant pays the ongoing costs that preserve the property and come with possession, while the remainderman typically bears long-term capital-type costs only if the will or a court order shifts responsibility.

Key Requirements

  • Identify the interest created by the will: The wording matters. “Right to live there for life” often operates like a life estate, but the will can shift expenses or create a different right (for example, a temporary occupancy right conditioned on paying expenses).
  • Separate ongoing carrying costs from major capital costs: Day-to-day costs (taxes, utilities, routine repairs) are usually treated differently from major improvements or unusual structural replacements.
  • Confirm who has “care or control” during administration: While the estate is open, the personal representative may have duties to preserve estate assets, but North Carolina practice often requires specific authority before the estate pays ongoing upkeep for real property.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The will leaves the house to the sole beneficiary but gives a relative a right to live in the home. Under North Carolina’s life-tenant tax statute, the relative who holds the life-type right is typically responsible for the property taxes as they come due during the occupancy. If the estate or the remainder beneficiary pays taxes to prevent a tax foreclosure, North Carolina law generally allows a reimbursement claim against the life tenant, subject to the facts and the will’s wording.

Process & Timing

  1. Who addresses the bills: The personal representative and the interested parties. Where: The Clerk of Superior Court (Estates Division) in the county where the estate is pending, and the county tax office where the property is located. What: A practical first step is documenting the will language and putting a written agreement in place about who pays which ongoing costs during occupancy. When: Before the next tax due date and before any distribution or closing paperwork is filed.
  2. If there is a dispute: A petition or motion may be needed in the estate file asking the Clerk of Superior Court to clarify authority for payments, reimbursement, or conditions of continued occupancy. Timing varies by county and hearing availability.
  3. How it usually resolves: The parties either (a) agree that the occupant pays ongoing expenses directly, (b) agree the estate advances certain costs with a written reimbursement plan, or (c) seek a court order allocating responsibility and setting conditions to protect the property.

Exceptions & Pitfalls

  • The will can change the default rule: Some wills expressly require the estate or the remainder beneficiary to pay taxes, insurance, or major repairs during the occupancy period. The exact wording controls.
  • Insurance gaps: Even if the occupant pays, the policy must match the ownership/occupancy situation. A mismatch can create coverage problems after a loss.
  • Mixing “maintenance” with “improvements”: Routine repairs (like fixing a leak) are different from major upgrades (like a full remodel). Disputes often come from treating improvements as reimbursable “maintenance.”
  • Estate paying without authority: In North Carolina practice, a personal representative often should not pay ongoing upkeep for real property after death unless the will or the clerk authorizes it. Paying first and sorting it out later can create accounting objections.
  • Unclear occupancy terms: A “right to live there” may be conditioned (for example, living there as a primary residence, not committing waste, or paying expenses). If conditions exist, they should be enforced consistently and documented.

Conclusion

In North Carolina, when a will gives a relative the right to live in a house for life, that relative is generally responsible for ongoing carrying costs tied to possession—especially property taxes—unless the will clearly shifts those costs. The most important immediate step is to confirm the will’s exact language and, before the next tax due date, put a written plan in place (or seek guidance from the Clerk of Superior Court) allocating who pays taxes, insurance, utilities, and routine maintenance during the occupancy period.

Talk to a Probate Attorney

If you’re dealing with a will that gives a relative the right to live in a house and there is disagreement about who pays taxes, insurance, utilities, or upkeep, our firm has experienced attorneys who can help clarify the rules, review the will language, and map out options and timelines. Call us today at 919-341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.

Category: Probate Q&A Series

Author: Pierce Law

Pierce Law Group is a North Carolina law firm focused on probate administration, real estate partition matters, and surplus funds claims across North Carolina. We know these situations often come with stress, family dynamics, and time-sensitive decisions—so we prioritize clear communication, steady guidance, and a practical plan from day one. Our goal is to make a complicated process feel manageable, while protecting what matters most to you.