Probate proceedings are as much about fulfilling someone’s responsibilities as they are about carrying out their last wishes. The personal representative of a Missouri state has to handle certain income tax matters and pay the deceased individual’s debts.
Those processes typically occur before the distribution of assets to beneficiaries or heirs. The estate itself is responsible for the debts of the decedent, but the personal representative may assume liability if they mismanage estate resources or fail to follow the right protocol.
What are the basic requirements when resolving the financial obligations of someone who has recently died?
Sending appropriate notice
The personal representative of a Missouri estate must take timely action to inform creditors about probate proceedings. They typically send letters directly to known creditors. Personal representatives can identify creditors by reviewing someone’s financial records and their incoming mail. Unknown creditors may also exist, which is why probate rules require the publication of notice in a local newspaper.
Allowing time for creditor claims
Once estate administration begins and a personal representative sends notice to creditors, the clock starts ticking. Creditors typically only have six months in which to make a claim in the probate courts. They must do so by submitting specific paperwork. A personal representative then uses estate resources to pay the valid claims presented through the probate courts. Once they complete this process, they can then proceed with the distribution of the remaining estate resources to beneficiaries and heirs.
In cases where there are not enough estate resources to pay all creditor claims, personal representatives must take care to pay high-priority debts ahead of other financial responsibilities. Probate expenses, end-of-life medical costs and funeral expenses typically take priority over unsecured debts, like a credit card balance owed by the decedent.
It is quite easy for even organized and intelligent people to make mistakes during the probate process. They need insight from those familiar with the law to help ensure they don’t make mistakes that can lead to personal liability. Having the right guidance during estate administrationcan help people avoid common mistakes and oversights. Personal representatives who properly notify and repay creditors can protect themselves from personal liability.