If someone who passed away owes you money, you can try to get it by filing a claim with their estate. It’s a simple process, but it can differ by area. You might want to consult a lawyer to make sure you follow the right steps and file your claim on time.
The process of probate
Probate is a systematic process where a deceased person’s assets are inventoried, debts are settled, and the remaining assets are distributed to will beneficiaries or legal heirs if there’s no will. The probate court in the deceased person’s area oversees this process.
Certain assets, like retirement accounts and living trusts, can avoid probate and pass directly to beneficiaries, although specific assets must go through probate to legally transfer ownership to heirs and beneficiaries.
The probate process begins by filing a request in probate court to appoint an executor (with a will) or an administrator (without a will). This person, often called a personal representative, compiles the estate’s asset list, notifies beneficiaries and creditors, and settles the deceased’s taxes, debts, and funeral expenses. Finally, inheritances are distributed to beneficiaries and heirs.
Usually, the entire probate process takes 8 to 12 months, with smaller estates probated more quickly than complex ones.
How to file a claim towards an estate
A claim against an estate is a written request for the estate to settle the deceased’s debts. Since probate laws vary by state, each state has slightly different procedures for informing creditors and filing such claims.
In many instances, the personal representative publishes a notice in a local newspaper to announce the probate of the estate. They may also issue a notice to inform potential creditors. In some states, representatives may send notices to known creditors.
However, relying solely on these notices is not advisable, as they might be inconspicuous, and you may not receive them by mail. If you know someone who owes you money has passed away, it’s a good idea to contact the probate court in the deceased person’s county to inquire about ongoing estate probate proceedings.
If a case has been initiated, the court can provide you with the case number and inform you if they have the necessary documents for filing a claim against the estate.
Filing a claim towards an estate is a somewhat simple process:
In your claim, you’ll need to swear that the debt is owed and provide details about the debt’s amount and any payments made by the deceased. If you have written documentation, attach it to your claim.
Your claim should be submitted to the probate court, and you may also have to send a copy to the personal representative.
Every state has specific rules about the time limit for filing a claim against an estate. Filing after the deadline could result in your claim being rejected. If you’re uncertain about how to file a claim or the time limit, consider consulting with a lawyer. They can also explain your options if your claim is denied.
If the estate has enough assets, your claim should be paid before distributing funds to heirs. However, if there aren’t sufficient funds to pay all creditors, claims will be paid in a specified order. Claims against the probated estate are typically paid using assets that go through probate, not those transferring outside of it.
Source:
- What happens when you file a claim against a probated estate? LegalZoom. (n.d.). Retrieved February 22, 2023, from https://www.legalzoom.com/articles/what-happens-when-you-file-a-claim-against-a-probated-estate
