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Faizan
The executor of an estate – called a personal representative in California – has a great deal of authority, but she doesn't have the final word regarding creditors' claims. If someone dies owing you money, you must first deal with the personal representative to try to get payment, but if there's a dispute, a judge or jury will decide the issue. The personal representative is obligated by California law to send you notice that the estate is in probate within four months of taking office, or one month after discovering that the decedent owed you money, even if the four- month period has already expired. She must also place a notice in the newspaper to alert any creditors she may not know about.
Filing a Claim
You don't have a lot of time in California to file a claim for your money. The deadline allows the same amount of time the personal representative has for sending you notice – four months after he takes office. However, your statute of limitations also runs from the date you actually receive notice, so if the personal representative does this on the last possible day – or even after the four months has expired – you have an additional 60 days from that date. You must file your claim with the probate court and make sure the personal representative gets a copy as well. He then has 30 days to decide whether the estate will pay you. Generally, he will deny the claim only if he believes it is not valid, perhaps because you don't have documentation to back it up. He might pay part of your claim but not the whole thing, if, for example, you have tacked on interest and he doesn't feel that this is reasonable.
Complaint for Payment
You can't go to court to file a complaint for your money without first going through the proper channels with the estate's personal representative. A complaint begins a lawsuit, and a lawsuit is necessary only if the personal representative denies your claim, or if you don't hear from her within 30 days. You have three months after your claim is denied or after the personal representative's 30-day deadline expires to file a complaint with the court asking a judge to order payment. Under some circumstances, this deadline can be extended for up to a year from the decedent's date of death. If you need more time, speak with a local attorney to find out if the facts of your case might qualify for an extension.
Jurisdiction
You can file your complaint with the probate court or, if the decedent owed you less than $5,000, with the small claims court. California law does not allow you to be represented by a lawyer in small claims court, however, so if you feel you need professional help, you might be better off filing with the probate court. If you and the executor agree, California allows you to present your dispute to a temporary judge. If you elect this option, you won't have to go through a full-blown trial with all it entails, such as exchanging discovery, but you don't get a jury either – the verdict comes down to the opinion of the judge.
Payment
If the court rules against your claim, you're out of options. The personal representative does not have to pay you. If your suit is successful, the court will award you a judgment for the amount of money you're owed. This obligates the estate to pay you if it can, and the personal representative must do so before closing probate. Under California law, your claim must be addressed before the estate can close. If the estate is insolvent, you might not get your money even though your lawsuit was successful. This means the decedent didn't leave enough property or cash to pay everyone he owed, so the court pays his creditors in an order of priority prescribed by law until the available money runs out. If your debt is considered low priority, the estate can close without your receiving your money.
Filing a Claim
You don't have a lot of time in California to file a claim for your money. The deadline allows the same amount of time the personal representative has for sending you notice – four months after he takes office. However, your statute of limitations also runs from the date you actually receive notice, so if the personal representative does this on the last possible day – or even after the four months has expired – you have an additional 60 days from that date. You must file your claim with the probate court and make sure the personal representative gets a copy as well. He then has 30 days to decide whether the estate will pay you. Generally, he will deny the claim only if he believes it is not valid, perhaps because you don't have documentation to back it up. He might pay part of your claim but not the whole thing, if, for example, you have tacked on interest and he doesn't feel that this is reasonable.
Complaint for Payment
You can't go to court to file a complaint for your money without first going through the proper channels with the estate's personal representative. A complaint begins a lawsuit, and a lawsuit is necessary only if the personal representative denies your claim, or if you don't hear from her within 30 days. You have three months after your claim is denied or after the personal representative's 30-day deadline expires to file a complaint with the court asking a judge to order payment. Under some circumstances, this deadline can be extended for up to a year from the decedent's date of death. If you need more time, speak with a local attorney to find out if the facts of your case might qualify for an extension.
Jurisdiction
You can file your complaint with the probate court or, if the decedent owed you less than $5,000, with the small claims court. California law does not allow you to be represented by a lawyer in small claims court, however, so if you feel you need professional help, you might be better off filing with the probate court. If you and the executor agree, California allows you to present your dispute to a temporary judge. If you elect this option, you won't have to go through a full-blown trial with all it entails, such as exchanging discovery, but you don't get a jury either – the verdict comes down to the opinion of the judge.
Payment
If the court rules against your claim, you're out of options. The personal representative does not have to pay you. If your suit is successful, the court will award you a judgment for the amount of money you're owed. This obligates the estate to pay you if it can, and the personal representative must do so before closing probate. Under California law, your claim must be addressed before the estate can close. If the estate is insolvent, you might not get your money even though your lawsuit was successful. This means the decedent didn't leave enough property or cash to pay everyone he owed, so the court pays his creditors in an order of priority prescribed by law until the available money runs out. If your debt is considered low priority, the estate can close without your receiving your money.
Posted in: Estate Laws
