in each state vary, so it is a good idea to consult an attorney to determine whether a probate proceeding is necessary, whether the fiduciary must be bonded (a requirement that is often waived in the will), and what reports must be prepared. Most probate proceedings are neither expensive nor prolonged, which is contrary to the claims of many vendors selling living trust services and other products.
CREDITOR'S CLAIMS PROCESS
States have differing laws on probate, including satisfaction of estate creditors. The executor or administrator is to notify creditors that the deceased has died so that creditors can have a chance to make claims against the estate. The requirements for this notice vary by state. The personal representative may have to send letters directly to creditors and/or publish public notices. State law will dictate the procedure that creditors must follow to collect from the estate. For example, creditors must often file a claim in probate court or with the executor within a certain period after they receive the notice. According to FreeAdvice® Legal, once the administrator has determined how many valid claims there are against the estate, he or she must see if there are enough assets to pay these debts. If there aren’t enough assets to cover the debts, the estate is said to be insolvent. Each state has laws about how property is to be distributed in an insolvent estate. For example, federal and estate taxes may be paid first, followed by probate expenses, funeral and last illness costs, and general creditors. If an estate is insolvent, the beneficiaries will get nothing, even if a will leaves them specific property or specified sums of money. Beneficiaries can only receive assets in probate if there are enough assets left over after all legitimate debts have been paid.
INVESTIGATE THE MARKE TE THE MARKET
95
Powered by FlippingBook