What You Need to Know About Creditor Claims Against an Estate

/by

Try as we might to live (and die) debt free, most people do pass away with some debt. The Executor (also
known as the Personal Representative) of an Estate is legally obligated to notify known creditors that an
estate of a decedent is being probated and it’s also a legal obligation to publish notice that an estate is
being probated, thereby allowing any unknown creditors to come forward and make a proper claim
against the estate.

Now, every state has limits on the amount of time a creditor has to come forward and make such a claim
and, in Alabama, that time frame is six (6) months from the date the decedent’s estate is opened. If no
claim is filed within that time period, you are not obligated to pay that claim. A reasonable time limit
exists so that an Executor can eventually distribute inheritances, free from the potential of later claims by
unknown creditors.

The Executor, as a fiduciary, is responsible for properly addressing any creditor claims and every state
has certain steps that must be followed. If not followed accurately and timely, the creditor may be able to
make claims against the Executor’s own assets. Hence, the critical importance of hiring an experienced
probate attorney to help assist and advise you, as the Executor, through the timely and often times
complicated probate process.

To learn more about the probate process, contact Davis, Davis & Associates today to schedule a
consultation with one of our experienced probate attorneys.

The Probate Process in Alabama

/by

In reality, the probate process in any state could fill up an entire book, but this blog post will (hopefully) give you a general overview of what to expect if you are anticipating having to navigate the probate court for the purposes of handling a decedent’s estate. For the purposes of this particular blog post, we will be discussing the process as it relates to filing the Will for a decedent. If an individual dies without a Will, that process is called “Intestate Administration” and will require its own post.

Probate is the court-supervised process of validating someone’s last will and testament, resolving any outstanding debts or taxes and distributing assets according to the terms of the decedent’s will. While it is (in theory) possible to undergo the probate process without any attorney, it is a lengthy, expensive and complicated process that would be best undertaken with the assistance of a qualified probate attorney.

So, let’s get down to brass tacks; the general flow of the probate process when a decedent passes with a will is this—contact the court, get appointed as the personal representative, submit the Will, inventory and submit valuation of all relevant assets, have the court and beneficiaries approval, and finally distribute the assets to rightful heirs/beneficiaries. If you are serving as the Personal Representative (also known as an Executor) you are responsible for:

  • Filing a Petition to Probate the Estate
  • Marshalling together probate assets
  • Managing and locating assets
  • Valuing and appraising estate assets
  • Receiving payments on behalf of the estate and paying taxes on behalf of the estate
  • Setting up a separate bank account for the estate with a separate EIN
  • Interpreting the Will
  • Communicating and working with heirs/beneficiaries
  • Valuing and appraising estate assets
  • Notifying creditors
  • Following all legal deadlines/attending necessary court hearings
  • Paying funeral expenses (if necessary)
  • Filing estate tax returns
  • Submitting death certificates
  • Submitting distribution receipts and officially closing the estate

Don’t be fooled, there are a LOT of minute and nuanced steps that have to be taken in conjunction with everything listed above, but this is a general outline of the tasks involved when it comes to probating the last will and testament of someone. Hence, why I highly, highly, recommend hiring an attorney who specifically does probate work and is well-versed in the law and well-known in the County in which you are operating.

To learn more about the probate process or to speak to a qualified probate attorney, contact Davis, Davis & Associates today to schedule a consultation.