Estate administration involves numerous critical responsibilities. Personal representatives have to secure assets so that they can distribute them appropriately later. They also have to provide outside parties with an interest in the estate an opportunity to make reasonable claims.
Frequently, direct communication with creditors is part of the estate administration process. Personal representatives typically have to make two separate types of attempts to communicate with creditors. What creditor notices are mandatory during estate administration?
Notifying known creditors
A review of financial records and incoming correspondence can help personal representatives identify known creditors. Credit card companies, student loan providers and other creditors may send statements and other correspondence to the decedent’s home or their email accounts.
Personal representatives generally have an obligation to directly notify known creditors about pending estate administration. Doing so gives them an opportunity to file claims for payment in probate court.
Publishing notices for unknown creditors
People might owe money to a variety of parties who do not necessarily communicate with them regularly. Probate statutes require the publication of notice about impending estate administration in a local newspaper to protect those creditors’ rights.
Typically, the personal representative must publish notice that runs at least three times in a local paper advising unknown creditors about the upcoming probate proceedings. If the personal representative publishes notice and communicates directly with creditors as necessary, they can limit the risk of facing personal liability for the financial obligations of the estate.
Having support throughout estate administration can reduce the likelihood of significant and costly mistakes. Personal representatives may need help ensuring they avoid mistakes that could lead to financial liability.