The probate and estate administration process requires a thorough financial review. The personal representative overseeing estate administration assesses financial statements, reads incoming mail, communicates with interested parties and uses estate resources to pay valid debts.
They also typically wait until they have finished paying all valid creditor claims before they complete the process of distributing property to the beneficiaries or heirs of the estate. Those expecting an inheritance typically need to wait until personal representatives have received and settled any valid creditor claims.
How long does that process usually take?
Creditors must file claims promptly
Every state has different rules regulating creditor rights in a probate scenario. State statutes provide a limited window of opportunity for creditors to request payment from an estate. Typically, creditors have no more than three months from the date when they received notice of estate administration to file claims for payment.
Personal representatives typically send direct notice to known creditors. They also publish notice advising unknown creditors about probate proceedings to ensure that the claim window closes as quickly as possible.
Only after they have given creditors enough time to submit claims can they move forward with the distribution of the assets that remain in the estate. Allowing adequate time for creditor claims is important for the protection of a personal representative, as they may become personally financially liable if they fail to provide notice or improperly distribute estate resources.
Having support during estate administration can help personal representatives limit their liability and help beneficiaries or heirs know what to expect. After the creditor claims period has passed, personal representatives can move forward with liquidating assets or distributing them to beneficiaries in accordance with the instructions of the decedent.
