04:40
Faizan
One reason probate takes so long is that the process is encumbered by many rules and deadlines. Informal probates are usually subject to less court supervision, so they go faster. States that have adopted the Uniform Probate Code – including Massachusetts – allow for both formal and informal probate procedures. Both of these probate types require published notice of the proceedings, and both allow creditors to file notices of claims.
Creditor Notification
Published notice of the opening of probate is not only for potential creditors of the estate in Massachusetts, and the state does not require that personal representatives or executors notify each of the decedent's creditors of his death. The notice does, however, serve to alert creditors that if they want payment from the estate, they must act within a prescribed period of time. It also lets all interested parties know that if they object to the named personal representative serving in this capacity, they can file a notice of their objection with the court. If no one does so, the personal representative will be formally appointed by the court.
Notices of Claims
After publication of the notice that the estate is entering probate, creditors may file notices of their claims with the personal representative. They have one year from the date of death to do so. If it's evident that the debt is legitimate, and the decedent did owe it, the personal representative is obligated to pay it from the estate's assets. Otherwise, she'll deny the claim.
Denied Claims
If the personal representative denies a claim, the creditor isn't necessarily out of luck. It can file a lawsuit against the estate, effectively going over the personal representative's head and seeking approval of the claim from the court. Notice of the lawsuit must be served on the personal representative, so she's aware that this is occurring and can defend her position. If the court agrees with the personal representative and rules against the creditor, the matter is closed.
Exception to the One-Year Rule
Some debts may not become due and owing during the one-year period after the decedent's death. These creditors have a longer period of time in which to file notices of their claims. For example, the decedent might have signed a contract shortly before his death, and the first payment under the terms of the contract may not be due for two years. In this case, the creditor can file a notice of claim when the payment actually comes due, provided that the estate has not closed by then. If it has, the estate's beneficiaries may be liable for the debt, but only up to the value of each's inheritance.
Creditor Notification
Published notice of the opening of probate is not only for potential creditors of the estate in Massachusetts, and the state does not require that personal representatives or executors notify each of the decedent's creditors of his death. The notice does, however, serve to alert creditors that if they want payment from the estate, they must act within a prescribed period of time. It also lets all interested parties know that if they object to the named personal representative serving in this capacity, they can file a notice of their objection with the court. If no one does so, the personal representative will be formally appointed by the court.
Notices of Claims
After publication of the notice that the estate is entering probate, creditors may file notices of their claims with the personal representative. They have one year from the date of death to do so. If it's evident that the debt is legitimate, and the decedent did owe it, the personal representative is obligated to pay it from the estate's assets. Otherwise, she'll deny the claim.
Denied Claims
If the personal representative denies a claim, the creditor isn't necessarily out of luck. It can file a lawsuit against the estate, effectively going over the personal representative's head and seeking approval of the claim from the court. Notice of the lawsuit must be served on the personal representative, so she's aware that this is occurring and can defend her position. If the court agrees with the personal representative and rules against the creditor, the matter is closed.
Exception to the One-Year Rule
Some debts may not become due and owing during the one-year period after the decedent's death. These creditors have a longer period of time in which to file notices of their claims. For example, the decedent might have signed a contract shortly before his death, and the first payment under the terms of the contract may not be due for two years. In this case, the creditor can file a notice of claim when the payment actually comes due, provided that the estate has not closed by then. If it has, the estate's beneficiaries may be liable for the debt, but only up to the value of each's inheritance.
Posted in: Estate Laws
