Back to the Learning Center

By: Scott Grossman on January 2nd, 2019

Probate Lawyers Explain CA Creditor Claims Procedure

Are you a trustee who is anxious about creditors making surprise claims while you’re in the last stages of administering a trust? Are you trying to determine if a claim against the estate is genuine? Wondering how Creditor Claims Procedure works?

Under normal circumstances, creditors have one year from the death of the trust settler to sue the estate for damages. Because trust administration can sometimes take less than a year, it could draw out the process unnecessarily. The longer time frame also increases the risk of a creditor stepping forward with a fraudulent or exaggerated claim. Though you’ll have options to disprove false claims, doing so could use up valuable time and resources. This could potentially cut into the estate.

What can I do regarding the Creditor Claims Procedure?

Consider limiting – and eventually ending – unexpected or questionable claims from creditors by invoking the creditors’ claims procedure. This statute is mandatory in probate but voluntary in trust administration. It will create a limited timeframe for creditors to file or pursue a claim.

The creditor claims procedure can make a creditor decide not to pursue further action. Especially if the claim is of questionable value or false. Either way, the creditor will be forced to decide on a course of action within a specific time frame. This allows you to prepare your case as necessary.

If you are ready to start your case, then please give us a call or fill out our Get Help Now form. A comprehensive overview of California Probate is available here. Should you have additional questions about trust litigation, you will find plenty of useful information in our Learning Center.