Creditor Claims In Florida Probate
Handling probate creditors is often one of a personal representative’s tasks during the final administration of a decedent’s estate. Depending on the nature and scope of the creditor claims probate will need to resolve, the process of discharging debts in probate may be finalized quickly or, on the other hand, may introduce some complexities into the overall administration process. To obtain guidance regarding the handling of debts in probate and seek advice regarding strategies for minimizing the impact of creditors’ claims on your estate plan, schedule a consultation with Loughlin, Law, P.A. by calling 561-559-6214 today.
What Is Probate?
Probate is the legal process by which a deceased individual’s financial accounts are closed, property that belonged to them during life is distributed to new owners, any outstanding debts are settled, and the deceased person’s final tax returns are filed. Essentially, probate provides a framework for putting to rest an individual’s legal identity, once the person it accompanied through life has passed away.
How Does Probate Relate to Creditors’ Claims?
Resolving any outstanding claims of creditors is an essential part of this process. Before the person tasked with carrying out the final administration of an estate can distribute any property the decedent (the deceased individual) left to heirs or beneficiaries, they must first determine what assets remain once all accounts have been settled.
Obligations of Personal Representative To Satisfy Debts
In the event that other parties owed money to the decedent, this “settling” process may include collecting payment of those debts; more often, and obligatorily under Florida law, the personal representative of a decedent’s estate must provide notice to creditors of the individual’s death. Creditors who wish to collect money from the estate in payment for the balance of the debt owed to them may then submit their claims, and generally speaking these claims must be resolved before the personal representative will be able to make an accurate accounting of the assets remaining to be distributed according to the decedent’s Last Will and Testament or, in the event that the decedent did not leave behind a valid Will, then through the process of intestate succession.
Process for Notifying Creditors
The precise notification requirements for handling probate creditors are delineated in 733.2121, Florida Statutes. In general, however, the personal representative is required to publish a notice in a newspaper circulating in the county whose probate court has jurisdiction over the estate, with priority given to newspapers that are published (i.e., headquartered) in that county. This notice will need to include:
- The decedent’s name
- The file number assigned to the estate by the probate court
- Location and contact information for the court under whose auspices the administration of the estate is being carried out
- The name and address of both the personal representative and the attorney advising the personal representative in accordance with Fla. Prob. R. 5.030
- A statement that the personal representative is not obligated to determine whether any of the property in the estate may be subject to Florida’s Uniform Disposition of Community Property Rights at Death Act
- A statement regarding the time limits for creditors to file their claims
- The first date of publication for the notice
The personal representative also typically has a legal duty to attempt to identify and locate any specific creditors of the estate in order to notify these parties directly. A probate lawyer with Loughlin Law, P.A. may be able to provide you with guidance concerning the procedure for notifying creditors during probate.
Can Creditors Take Money From an Estate?
Generally speaking, creditors do not take money from an estate directly. Instead, § 733.703, Florida Statutes establishes that each creditor is responsible for submitting a written statement of their claim to the personal representative. With few exceptions, the creditor claims probate covers must be submitted within the statutory timeline in order to be considered.
Once the statutory window for creditors’ claims has closed, the personal representative is responsible for including these claims in the payments to be made out of the decedent’s estate. Since there can sometimes be several different types of debts in probate, § 733.707 mandates the order the personal representative must follow in paying the decedent’s final bills and resolving outstanding claims against the estate.
Speak With a Florida Probate Lawyer
Resolving debts in probate is a normal part of the final administration of estates. How difficult handling probate creditors becomes in a given case will depend partly on the creditors themselves, and partly on the creditor claims probate is left to resolve – generally speaking, if a personal representative is able to show, through documentation left by the decedent, that a debt has already been discharged, then an unscrupulous creditor (or simply one with poor bookkeeping skills) who submits a claim to be paid again can be rejected. A probate lawyer with Loughlin Law, P.A. may be able to walk you through the creditor claims probate process and help you identify strategies for minimizing the role handling probate creditors is likely to play in the probate of your estate. Call 561-559-6214 today to schedule a consultation with a member of our team.
