Estate administration typically involves going to probate court. A personal representative (known in some states as an executor) submits testamentary instruments to a court if they can locate them. They document the assets that belong to the estate to ensure that they properly manage and distribute the estate’s resources. If there is no will, then intestate succession laws determine how they distribute property.
The personal representative also fulfills the lingering obligations of the deceased individual. Paying debts is a critical component of successful estate administration. Personal representatives have to follow the right procedures to protect themselves from liability during the probate process.
Creditors need an opportunity to make a claim
Credit card companies, hospitals and a variety of other creditors may have an interest in an estate. Personal representatives typically need to provide written notice to known creditors about upcoming probate proceedings.
However, there may be some creditors that they cannot identify through financial records and correspondence alone. Therefore, probate requirements in Florida also mandate the publication of notice in a local newspaper for at least two consecutive weeks.
Creditors who learn about probate proceedings can pursue claims for repayment. A personal representative who does not provide appropriate notice or fails to repay creditors with the estate’s resources may face personal liability if creditors bring claims against them. They could face litigation that forces them to take responsibility for the value of any assets they improperly distributed instead of using them to repay creditors.
Learning more about probate proceedings and getting experienced legal guidance can help those acting as personal representatives protect themselves. Appropriate communication with creditors and attempts to repay valid debts can protect personal representatives from financial exposure and probate litigation.