A personal representative or executor may agree to oversee estate administration while a testator is living and planning their estate. Other times, the probate courts appoint an individual to manage estate administration after an individual dies, because there is no will or the personal representative nominated in the documents is not available.
Once a personal representative begins the process of estate administration, they have a responsibility to manage estate resources and fulfill estate obligations. Before they distribute all assets to beneficiaries or heirs, they must address financial obligations. The debts owed by the person who died become the responsibility of their estate after their passing. Advising creditors about estate administration is a critical responsibility for personal representatives.
What notice is required?
There are two forms of creditor notice usually provided during estate administration. Personal representatives generally begin receiving the incoming mail of the deceased party. They also have access to financial records. They may be able to identify most, if not all, the creditors owed money by the estate. They can send direct written notice to those creditors advising them of their appointment and the upcoming probate proceedings.
There may be creditors who are more difficult to identify. State statutes require that personal representatives publish notice in a local newspaper. They should arrange for notice to run once a week for two consecutive weeks in a local paper in the jurisdiction where the probate courts will hear the case.
When personal representatives follow the right procedures, they can protect themselves from liability during estate administration. Notifying creditors about probate proceedings and ensuring they receive payment can protect personal representatives from liability for unpaid debts.