What happens if creditors make a claim during probate?
During the probate process, creditors have the right to make claims against the estate of a deceased person. The purpose of these claims is to seek repayment for debts owed by the deceased.
Understanding how these claims work can help an executor protect the estate’s assets and ensure the correct handling of debts.
Notifying creditors of estate administration
When probate begins, the court appoints a personal representative to oversee the estate. One of the representative’s responsibilities is to notify creditors. In Massachusetts, this involves publishing a legal notice in a local newspaper and sending notices directly to known creditors. Creditors have one year from the date of death to file a claim against the estate.
Reviewing the creditor’s claim
Once a creditor submits a claim, the personal representative must review it. They need to determine if the claim is valid and whether the estate has enough funds to pay it. Valid claims typically include medical bills, credit card debts, mortgages or other financial obligations.
Paying the outstanding debts
If the estate has enough assets to cover the debts, the representative pays them in the order established by Massachusetts law. For example, funeral expenses and administrative costs often take priority. After these payments, the representative distributes any remaining funds to the estate’s heirs.
Contesting invalid claims
Disputes can arise if the personal representative or other beneficiaries believe a claim is not valid. When this happens, the representative can challenge the claim in probate court. The court will then review the evidence and decide whether the claim should be paid.
The presence of creditor claims can complicate probate and delay the distribution of assets. The personal representative should act quickly and follow Massachusetts probate laws carefully to resolve these claims. By addressing debts properly, the estate can move forward with the final distribution of assets to heirs and beneficiaries.
