The probate process can easily take a year or longer to complete. Personal representatives have to identify and secure the assets of the deceased individual. They need to locate a will, if there is one, and then present it to the probate courts.
Communication with interested parties is also one of their most important responsibilities. Typically, personal representatives provide information about the estate to the beneficiaries or heirs who may inherit from the estate. They may also need to communicate with creditors about estate administration. Before they distribute assets to beneficiaries, they typically first need to use estate resources to repay creditors.
What financial obligations do personal representatives need to address during estate administration?
All valid debts could lead to creditor claims
Responsibility for financial obligations does not simply end when a person dies. Instead, their estate becomes responsible for their debts. Medical bills, credit card balances and various types of loans could all lead to creditor claims after a person dies.
Personal representatives typically try to identify known creditors and communicate with them in writing. They usually also publish notice of the probate proceedings in the local newspaper. Creditors can then submit claims for the personal representative to review.
Provided that the repayment requests are valid, the personal representative should pay debts in the appropriate order of priority. Certain financial obligations, including probate expenses and end-of-life medical care debts, take priority over other debts, such as unsecured credit card debt.
Personal representatives usually need to take care to avoid mistakes regarding the debts that become the responsibility of the estate. Learning more about probate statutes can help those administering an estate fulfill their obligations while minimizing their personal exposure.
