11 Facts About Creditor Claims and Riverside Probate Administration
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Among the responsibilities of a personal representative in California is to notify creditors of the probate proceedings. In addition, the personal representative must pay claims that are proven valid. Since some debts take priorities over others during the Riverside probate administration process, it is important to seek the guidance of an attorney before making any payments.
The creditor claim process in California can be confusing for those unfamiliar with probate administration.
The following is an overview relating to creditor claims against an estate:
- First of all, creditors can fill out a claim form and file it with the court if a decedent dies owing them money.
- Also, the personal representative has a duty to find and notify creditors. The notice must state that a probate has been initiated.
- Creditors have either 60 days from the date of the notification or four months from the date that letters are issued, whichever is later, in which to file the claim with the court.
- Additionally, creditors must send a copy of the claim to the personal representative.
- If the creditor does not send a copy of the claim to the personal representative within 30 days after the claim is filed or four months from the date letters are issued, whichever is later, the claim may be invalidated.
- Also, creditors who miss these deadlines may file a special petition before the court to try and have their claim allowed. This is only granted under special circumstances.
- Creditor claims must provide details about the nature of the claim and the amount that is allegedly owed.
- Additionally, the personal representative may request that the creditor prove their claim. This may include receipts or written agreements.
- Furthermore, the personal representative then files an allowance or a rejection following the claim.
- If the personal representative does not allow a claim or rejects the claim outright, the creditor must file a lawsuit.
- Last but not least, keep in mind that some claims, such as debts secured by real estate, do not need to be filed.
In conclusion, dealing with creditor claims is an important aspect of probate administration that can lead to mistakes if a personal representative does not fully understand his or her duties and the law. Our free guide, “The Insider’s Guide to California Probate and Trust Administration,” provides more information about this process. Contact an experienced Riverside probate lawyer today to learn more. Call our toll-free number at (888) 443-6590 for a consultation.