When someone you care about passes away, dealing with their debts can be one of the most stressful parts you will face during probate. At The Florida Probate & Family Law Firm, our lawyers help executors navigate creditor claims in Florida probate with confidence and accuracy. We have seen firsthand how complicated this process can get, which is why we are here to help you identify potential creditors, make sure proper notice gets sent out, and evaluate whether each claim is valid, protecting the estate from unnecessary liability.
By carefully managing debts and payments, our attorneys will work to make sure the estate gets administered properly under state law, so beneficiaries can receive what they are entitled to without unnecessary delays or complications.
Examples of Creditor Claims in Probate
After a person passes away, the estate may be responsible for resolving outstanding financial obligations. Creditors may have the following claims against the estate for money the decedent owed during their lifetime:
- Taxes: Unpaid federal, state, or local taxes can be claimed by the relevant taxing authorities
- Utility or Service Bills: Outstanding bills for electricity, water, or other services may be submitted
- Mortgages and Loans: Any remaining mortgage, car loan, or personal loan must be settled by the estate
- Business Debts: If the decedent owned a business, creditors of the business may also file claims against the estate
- Credit Card Debt: Outstanding balances on personal or joint credit cards can be claimed by the issuing financial institution
- Funeral or Burial Expenses: Funeral homes may submit claims for services they provided for the decedent’s final arrangements
- Medical Bills: Hospitals, doctors, or other healthcare providers may file claims for any unpaid treatment the decedent received
Our lawyers can review creditor claims involving many types of debts and ensure they are handled properly under Florida probate law.
How Executors Handle Creditor Claims in Probate
When someone passes away, their estate may have outstanding debts that need to be addressed before assets can be distributed to heirs. Executors play an important role in managing creditor claims during probate. First, the executor identifies potential creditors by reviewing the decedent’s financial records, outstanding bills, and known obligations. They are required to notify creditors of the probate proceedings, often through formal notice in newspapers or direct communication, giving creditors a set period to submit claims.
Once claims are received, the executor evaluates their validity, ensuring the debt is legitimate and properly documented. Valid claims are then paid from estate assets, usually in an order established by state law, which often prioritizes funeral expenses, taxes, and secured debts. Invalid or disputed claims may be rejected, and creditors can challenge the decision in probate court.
By carefully managing creditor claims, executors in a Florida probate protect the estate from unnecessary liability and ensure an orderly distribution of assets to beneficiaries.
Why Probate Matters to Creditors
Probate is the final opportunity for a creditor to be repaid money owed by the decedent. It represents the legal process that closes the estate entirely. Once a probate in Florida is completed, creditors no longer have valid claims against the decedent because assets have already been transferred to the beneficiaries. It is critical that creditors have notice of the probate process and an opportunity to submit claims for payment. Creditors must be paid from estate assets before beneficiaries can receive their shares. Only after this process is complete can the probate process move toward closing and distributing assets according to the terms of the will.
Contact a Florida Attorney For Help Navigating Creditor Claims in a Probate
As an executor, you may need help dealing with claims submitted by creditors. It is important to get everything right, both to fulfill your duties to the beneficiaries and to preserve estate assets. You do not have to handle creditor claims in Florida probate alone. Schedule an appointment with a lawyer at our firm to learn how we can make your role easier while ensuring estate obligations are satisfied and assets are protected.