Estate administration involves many complicated tasks. Personal representatives have to identify and preserve the estate’s resources. They must review testamentary instruments or intestate succession laws to distribute assets properly.
They also need to fulfill the lingering personal obligations of the deceased individual. Personal representatives often file income tax returns and pay final tax invoices. They may also have to pay amounts owed to private creditors. Those who fail to follow the right process could face personal liability for certain unpaid debts.
How can personal representatives fulfill their obligation to notify creditors?
By publishing advance notice
Some creditors are easy for personal representatives to identify. They send monthly invoices or show up on bank statements. Personal representatives can then directly communicate with those companies to advise them of the pending estate administration and the possible need to file a claim against the estate.
They also need to publish a written notice in a local newspaper. Typically, the county where the probate courts hear the estate administration case determines what newspapers the personal representative can use.
They should publish notice for at least two consecutive weeks advising creditors of the upcoming estate administration and the need to file a claim for repayment. They typically must allow at least 60 days for creditors to file a claim, although there is a 12-month rule that applies in cases where creditors do not receive notice.
Understanding the legal obligations that come with estate administration makes it easier for personal representatives to protect themselves and fulfill their responsibilities. Proper communication with creditors is a key component of effective estate administration.