When a person dies, their debts remain payable. Payment for the debts comes out of the deceased person’s estate before property can be distributed to heirs and beneficiaries.
One of the crucial tasks an estate’s personal representative must manage is handling creditor claims in Pinecrest probate. If you have been appointed to handle a deceased person’s estate, contact one of our experienced probate attorneys for sound guidance.
Duties of a Personal Representative
Someone who is named as executor of a will is the estate’s personal representative. The “estate” is the decedent’s (deceased person’s) probate property and debts. If a person dies without a will, a probate court judge names someone, usually a family member, to be the personal representative of the estate.
The personal representative must collect the decedent’s property, including debts they were owed. They must then pay the decedent’s debts out of the collected property. Once the decedent’s debts are settled, the personal representative can distribute the decedent’s remaining property.
Not all property is subject to probate. An attorney in Pinecrest can explain which property passes outside of probate and help a personal representative gather the probate property to meet creditor claims.
What Is the Process to Notify Creditors?
When a personal representative begins managing a decedent’s estate, they gain access to their mail, personal papers, and bank accounts. That information usually provides a firm starting point for dealing with the decedent’s debts.
Florida Statutes § 732.2121 requires the personal representative to notify all the known creditors of the decedent’s death, providing the information necessary for the creditor to make a claim. The personal representative also must publish the same information in a local newspaper at least once a week for two consecutive weeks. A probate attorney in Pinecrest can help ensure that the notice for publication contains all the information creditors need to submit a claim.
The law requires that the personal representative publish the notice “promptly,” and it is advisable to do it as quickly as possible. Creditors have until the later of 30 days from receipt of direct notice of the death or 90 days from the creditor notice publication date to submit a claim. A personal representative needs the creditor claims to determine the liabilities against the estate.
Challenging and Paying Claims Against the Estate
Creditor claims are subject to challenge. If a personal representative, estate beneficiary, or another creditor objects to the claim, the creditor has 30 days to decide not to pursue it or try to enforce the claim outside of probate. A personal representative should get advice from a Pinecrest probate attorney before objecting to a creditor’s claim.
The personal representative can pay the decedent’s bills using cash that is in the estate (usually from the decedent’s checking and savings accounts, which get transferred to an estate account). If there is not enough cash to cover the debts, the personal representative must sell other estate property to cover the shortfall.
As the personal representative pays the estate’s debts, the creditors will issue a release of claim. Once all creditors’ claims are satisfied and released, the personal representative can distribute the remaining property to the beneficiaries of the decedent’s will or in accordance with the law if no will exists.
Seek Guidance on Creditors’ Probate Claims from a Pinecrest Attorney
Managing an estate is a huge responsibility, and legal advice is critical. Contact The Florida Probate and Family Law Firm for an explanation of how to effectively handle creditor claims in Pinecrest probate.
If you are a beneficiary who objects to a creditor claim, we can assist you in filing the objection. Contact us today for assistance with any probate matter.