Personal representatives administering estates generally need to be competent multitaskers. They need to manage multiple challenging issues at once. They may need to occasionally attend hearings in court. They have to secure and properly manage estate resources. They have a responsibility to file tax returns and use estate resources to pay any remaining tax obligations after an individual passes.
They also need to address any outstanding debts. Medical bills, student loans and credit card balances may all require repayment from the estate. Personal representatives have an obligation to communicate with creditors and repay them in the proper order of priority.
What communication is mandatory?
Personal representatives may be aware of certain creditors already due to their pre-existing relationship with the decedent. They may be able to put together a relatively thorough list of creditors by examining incoming mail and reviewing financial records.
Sending direct written notice about probate proceedings to known creditors is an important step during estate administration. Direct notice allows those known creditors to file claims for repayment.
There may be unknown creditors as well who also have an interest in the estate. As such, it is standard practice for personal representatives to publish notice in a local newspaper advising of the upcoming estate administration. The final distribution of assets typically only occurs after creditors have had an opportunity to file claims.
Personal representatives must carefully conform to legal standards during estate administration. Otherwise, they risk direct liability for unpaid debts in some cases. Having guidance when navigating probate matters can help personal representatives limit their own liability and better ensure their compliance with all relevant statutes.