The death of a utility customer presents a unique set of legal and practical challenges for local government utilities. Because utility service is based on a contract between the utility and the customer, that contract ends when the customer dies—leaving no one legally responsible for unpaid charges or ongoing service. Charges incurred before death may be recoverable from the customer’s estate, if one is opened. But charges incurred after death generally cannot be collected unless someone lawfully establishes a new account.

These situations are often difficult to identify and manage. Utilities may not immediately know a customer has died. Family members or others may still be living at the property, but they are grieving, uncertain of next steps, or unaware of the need to notify the utility. In some cases, there is confusion about who has the legal authority to request new service or resolve the outstanding balance.

This post outlines common issues that arise when a customer dies and offers both legal and practical guidance to help local government utilities respond appropriately. Every utility should adopt clear procedures—incorporated into the utility ordinance—for handling these cases. But policies should also allow flexibility to address the wide range of circumstances that can arise after a customer’s death. 

Identifying and Verifying the Death of a Utility Customer

The first challenge for any local government utility in handling the death of a customer is simply knowing that it has occurred. Unless a family member, property occupant, or estate representative contacts the utility, staff may have no reason to suspect that the account holder is deceased. In the meantime, bills continue to be sent, services continue to be provided, and the utility remains at risk of accumulating charges it cannot legally enforce.

There are several common “flags” that may cause a utility to suspect an account holder has died. These include a returned utility bill, an account falling delinquent after years of on-time payments, reports from neighbors or town staff, or an obituary published in a local newspaper or online. In some cases, a family member, tenant, or executor may contact the utility directly. When one or more of these flags arises, the utility should not rely on assumptions or informal reports alone. Instead, it should take reasonable steps to confirm the death before taking further action.

The most direct method is to receive verification from a family member or occupant of the property. The utility might also confirm the death by checking with the Register of Deeds in the county of death. Uncertified copies of death certificates are public records and are typically searchable either locally or through a statewide system. Obituaries may serve as a helpful verification tool, if they include full names, addresses, and dates.

In some cases, the utility receives formal notice from the executor of the estate. Once appointed by the Clerk of Superior Court, an executor is issued Letters Testamentary (or Letters of Administration if no will exists), which grant legal authority to manage the decedent’s affairs. As part of their duties, the executor must notify known creditors of the decedent’s death. A utility may receive this notice by mail, along with instructions on how to submit any claims for unpaid bills incurred before the customer’s death. If notified by someone claiming to be the executor of the account holder’s estate, the utility should request a copy of the Letters Testamentary or Administration to verify the representative’s authority, and should document the date of death, amount owed, and deadline for submitting a claim to the estate.

Searching for estate filings through the Clerk of Superior Court may be another possible verification method, but due to the ongoing transition to the statewide eCourts system and the current mix of electronic and paper systems across counties, this process can be time-consuming and less reliable. Moreover, not every decedent will have an estate filed with the court—particularly if no probate is necessary. For these reasons, utilities should prioritize documentation from the family, occupant, or estate representative, supported by a death certificate or obituary, as the most practical and efficient means of confirming a death. All verifications should be documented internally, including the source, method, and date of confirmation.

Account Action Once the Death of the Account Holder Is Verified

Once a local government utility confirms that a customer is deceased, it should document the account status internally and initiate appropriate follow-up. The utility’s next steps will depend on the specific circumstances at the service address and whether anyone comes forward to take responsibility for the account. (Collection options for unpaid balances are discussed in a later section.)

Death Discovered Through a Public Source, Account Is Current. If the utility learns of the death through an obituary or other external source—and the account is still current, meaning there is no balance owed—it should send a notice to the service address. The notice should explain that service must be transferred to a living, legally responsible person within a defined timeframe (e.g., 15 days) or it will be disconnected. The utility may want to offer an incentive to encourage another owner or occupant to become the account holder by not charging new account set-up fees. If no one responds, the utility should proceed with disconnection under its standard procedures, regardless of whether the property is occupied. Continuing service in the name of a deceased individual creates legal and financial risk and should not be permitted to continue.

Death Discovered After Account Becomes Delinquent. In some cases, the utility may not learn of the death until the account balance goes unpaid. Whenever an account goes delinquent, the utility should follow its regular disconnection procedures to limit its financial exposure. Allowing a delinquent account to remain open for months increases the risk that outstanding balances will be uncollectible, whether the account holder is deceased or not. Terminating services will typically prompt someone to contact the utility and then the utility can take steps (outlined below) to transfer or establish new service in another person’s name if the account holder is deceased. 

Someone Notifies the Utility of the Death and Seeks to Close or Assume the Account. If a family member, heir, executor, or occupant contacts the utility to report the death and asks to close the account, the utility should do so after verifying the account holder is deceased. If the person wishes to continue service or open a new account, the utility should follow its procedures for transferring services or establishing a new customer, as outlined in the next section.

Transferring or Establishing New Account for Service 

In many cases, someone else will want to continue utility service at the property. Local government utilities have discretion to either transfer the service—treating the new customer as a continuation of the existing account, possibly waiving start-up fees—or require the person to open a new account. The utility ordinance should clearly outline when each option is allowed.

Regardless of the approach, service must be provided only to a living person or legally recognized entity with the authority to request it and assume responsibility. The new customer must also sign the utility’s service agreement (customer contract).

Several different scenarios may arise depending on who steps forward and their relationship to the decedent or the property.

The executor or administrator of the estate may request that utility service continue temporarily in the name of the estate while the property is cleaned out, prepared for sale, or otherwise managed. This is a common request. If the utility chooses to allow it, it should require the executor to provide a copy of the Letters Testamentary or Letters of Administration issued by the Clerk of Superior Court, as well as valid identification and a signed service agreement. A new account should be opened in the name of the estate—not continued in the name of the deceased. The utility may choose whether to assess new account fees or deposits, but it should apply that decision consistently.

A surviving spouse, co-owner, co-lessee, or other lawful occupant may request that service be placed in their own name. If the individual provides sufficient documentation—such as a deed, lease, or another utility bill in their name at the property—along with other required new account documentation and a signed service agreement, the utility may establish service in that person’s name. Depending on local policy, the utility may treat this as a transfer of service or require a new account, but either way, it should ensure the individual understands that they are assuming full responsibility going forward.

An heir who was not already living at or formally associated with the property may seek to re-establish service. This can be more complex, especially when no estate has been filed. In these situations, a utility may choose to accept an affidavit of heirship—a sworn, notarized statement asserting the person’s relationship to the deceased and lawful claim to occupy or inherit the property. The affidavit should be accompanied by photo ID and some form of address verification. A local government utility should define in its utility ordinance whether and under what circumstances affidavits of heirship are accepted, and may want to consult its local attorney to limit exposure and ensure consistency. If an estate is opened, the utility should work with the executor or administrator to determine who lawfully owns or occupies the property.

Finally, service requests may come from a completely unrelated party—such as a new owner or tenant—following the sale or lease of the property. In this case, the utility should simply follow its standard procedures for setting up a new customer account. The applicant should provide valid identification, proof of ownership or tenancy (such as a deed or lease agreement), and a signed service agreement. 

In all cases, the utility’s policies should be clear, consistently applied, and focused on ensuring that service is only provided to individuals or entities who are legally responsible and capable of managing the account. Whether the utility allows transfers or requires new account setups, the key is to maintain control over the contractual relationship and protect the utility’s ability to collect payment for services rendered.

Collection of Unpaid Balances Upon Death of Account Holder

What happens to the unpaid balance on a deceased customer’s account? The answer depends on whether the charges were incurred before or after death. While it may seem reasonable to look to surviving family members or occupants for payment, the law limits who can be held liable.

Charges Incurred Before Death

If the deceased had a delinquent account at the time of death, the utility may pursue the following options:

• Co-account holder liability: If another person co-signed the account and agreed to be financially responsible, that person remains liable for all charges, both before and after death.

• Claim against the estate: The utility can file a claim against the customer’s estate under G.S. Ch. 28A, Art. 19.  The claim must be filed within 90 days of the notice to utility from the executor or administrator. If the claim is denied, the utility has three months to initiate a lawsuit. If no formal estate has been opened, the utility cannot force probate. However, if the unpaid balance is substantial, the utility may consider pursuing a small estate claim under G.S. Ch. 28A, Art. 25. This allows a creditor to collect from assets distributed through an informal affidavit process. Utilities should weigh the administrative burden against the amount at stake.

• Voluntary payment: A surviving spouse, family member, or occupant may offer to pay the balance. The utility may accept such payments, but unless the person is a co-account holder, they cannot be forced to pay.

Charges Incurred After Death

Once the account holder dies, the service contract ends, and the estate is no longer automatically liable. If service continues and no one lawfully assumes responsibility, any charges incurred after death are generally uncollectible. (In limited cases, the utility might consider an unjust enrichment claim against someone who benefited from the service, but such claims may be costly and uncertain.)

The utility may collect post-death charges only from:

• A co-account holder, or
• Someone who voluntarily agrees to take responsibility for the account.

A local government may NOT:

• Transfer the unpaid balance to someone just because they live at the property, or
• Require a new applicant to pay the past-due bill as a condition of service.

Counties and municipalities may, in limited circumstances, hold one person responsible for another’s utility balance under the theory that both benefited from the service, but these exceptions are narrowly defined do not apply when the original account holder is deceased. See G.S. 153A-277(b1) (counties) and G.S. 160A-314(b1) (municipalities). 

However, if someone uses the deceased person’s identity to continue service, the utility may pursue full collection under standard enforcement tools. See G.S. 153A-277(b2) and G.S. 160A-314(b2).

To protect the utility, the best approach is to disconnect service upon learning of a customer’s death unless and until a new, responsible party establishes service in their own name.

Proactive Steps for Utilities to Reduce Risk

To better manage customer death scenarios and reduce the risk of uncollectible accounts, local government utilities might consider taking at least some of the following proactive steps:

Update ordinances and procedures: Amend utility ordinances and internal policies to provide clear guidance for staff on what to do when a customer dies. Include steps for verifying death, closing accounts, and establishing new service.

Include a designated contact field on service agreements: Add an optional field to the service application allowing customers to name a trusted contact who can answer questions or help make account decisions in the event of death or incapacity.

Require co-account holders in certain cases: Consider requiring a co-account holder in specific situations—such as when service is opened jointly by spouses, by all adult tenants listed on a lease, or in landlord-tenant arrangements—to ensure someone remains legally responsible if one party dies or moves.

Communicate policies clearly: Regularly inform customers about utility policies for account assumption, closure, and death-related procedures. Transparency helps build trust and prevents confusion during already difficult transitions.

Use account activity flags: Create internal triggers based on inactivity, returned mail, or zero usage to prompt account review and follow-up for possible death or vacancy.

Train staff regularly: Provide ongoing training for customer service and billing staff on handling deceased customer accounts lawfully and compassionately. Create a clear guide that staff can follow when they learn of a customer’s death, including required documentation and steps for disconnection, verification, and reconnection.