Dealing With Creditors As A Personal Representative
Part of the probate process involves settling the claims of creditors against an estate. The personal representative is charged with paying valid claims. These can include routine bills, mortgages, taxes, funeral expenses and expenses from a final illness.
At the St. Paul, Minnesota, law firm of Mason & Helmers, we help personal representatives with matters related to creditor claims. We also advise creditors. Clients are educated in the process and receive assistance with disputes, litigation and questions arising from claims of creditors. They get information about issues such as these:
- When creditor claims must be brought against an estate
- To whom the personal representative must give notice of a probate proceeding
- Whether claims can be disallowed, which may become the subject of probate litigation
- Determining whether sufficient assets exist (in addition to exempt assets such as a homestead) to pay creditors
- Paying creditors according to state-prescribed priority if there are insufficient assets
- Improperly handled creditor claims that can lead to liability for the personal representative
- Exceptions to claim deadlines for hospitals, county welfare departments and the Minnesota Department of Human Services
The personal representative may need to sell nonexempt assets to meet creditor claims. The firm will advise clients about exempt and nonexempt property under Minnesota law.
Many of the steps involved in handling creditor claims may become subjects of litigation. Creditors may contest the priority of payment. They may dispute the disallowance of their claims. Creditors whose claims are not paid may dispute the allowance of other creditors’ claims. In all disputes involving creditors, the lawyers at Mason & Helmers can assist.
Common Creditor Disputes During Probate
Creditor disputes can add an extra layer of complexity to the probate process. This can happen when:
- Creditors argue over the legitimacy of their debts while other interested parties question the validity of what creditors are owed.
- There are disagreements over which debts to pay first, particularly when the decedent doesn’t have the money or real estate to cover all the debt.
- There are disagreements about when and how to pay the debt. When this happens, it can slow down the process of settling the estate.
Our team is committed to helping you maneuver these disputes efficiently and effectively.
Legal Requirements For Notifying Creditors About Probate
To notify creditors about ongoing probate in Minnesota, you must follow certain legal requirements, including giving notice of the hearing to all interested parties by publication and mail.
We can help ensure you are following the law appropriately when providing notice to creditors. Contact us with any additional questions or concerns you have.
Contact Us
To learn more about creditor claims against an estate, contact Mason & Helmers today. Our firm’s lawyers serve clients in the Minneapolis, St. Paul, area and beyond. Call 651-323-2548 to set up an appointment.