Friday, July 10, 2009

Fiduciary Duties – Claims of Creditors

Once the fiduciary of an estate files an inventory of probate assets and establishes an estate checking account, the valid debts of the decedent should be paid. This, of course, assumes that the estate is solvent. In the case of insolvency, the fiduciary needs to wait for the claim period to run to determine the extent of the insolvency and the priority of payments.

Creditors have six (6) months from the date of the decedent’s death to present a claim in writing to the fiduciary. If the claim is not timely presented, it is barred by statute.


Anonymous said...

the 6 month period applies to all creditors such as nursing home bills, credit card bills etc? If so why not always wait 6 months to open an estate?

Bradley Wrightsel said...

Yes, the 6 months applies to nursing home bills, credit cards, etc. It is possible that some people might attempt to wait for the 6 mos. period before opening an estate. A creditor could apply to open the estate on its own to present a claim if there is delay.