Creditors Claim: How to invoke the procedure to limit and eventually stop creditors from filing new claims
For a California trustee, the process of invoking the creditors claim procedure in trust administration works as follows:
- A notice to creditors on the decedent’s behalf is published in a local newspaper.
- Proof of the publication is filed with the court.
- Additionally, creditors are given 4 months from the date of newspaper publication to file claims.
- For known creditors, notice is directly mailed.
- Also, creditors receiving mailed notice are given 60 days to file claims.
- Furthermore, creditors must file a claim with the estate before suing.
- The trustee has 30 days from the filing of a claim to approve, deny, or approve or deny in part.
- The trustee must take action on the claim by the end of 30 days. If not, the creditor can view this as denial and sue.
Probate has a mandatory four-month creditors claim period.
This means that, if an estate has undergone California probate, a second creditors claim procedure cannot be invoked. If you are a trustee who wants to put a stop to surprise claims from creditors during the California trust administration, we might be able to help.
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.