Involvement of Creditors
At first, the list of property left by the deceased may look substantial, and requires effort in managing the distribution. Part of this process is the involvement of Creditors and there are methods of how creditors should be notified.
Yet, California probate law will require the personal representative to finalize the Inventory and Appraisal Form (the detailed list of the decedent’s property). This will allow them to find out how much the deceased owed to creditors at the time of their death. Then, once all creditors’ claims are known, the value of the estate will truly be appreciated.
At the very start of the California probate process, the Notice of Petition to Administer Estate is published in local newspapers and is the first indication to creditors that they should come forward with their claim. The representative makes inventory of all the decedent’s assets. This must be no later than four months from the date that they issue the Letters Testamentary. The personal representative then sends a Notice of Administration to Creditors to every known or suspected creditors to advise them how and where to file a claim.
If the personal representative has requested authority to administer the estate under the Independent Administration of Estates Act, he or she may make all the decisions regarding the payment of outstanding debts without court supervision.
Expenses and obligations that arose after the decedent’s death do not require formal claims by creditors. This is also the case for tax bills, mortgage loan debts, or debts that show evidence of bills or invoices. All of which are in possession of the personal representative.
Claims from a creditor reduces the net value of the estate. It is, therefore, crucial for the personal representative to find out all known and potential creditors that might have a claim against the estate. They do this by searching through the decedent’s records and files looking for statement of accounts, correspondence and other documents.
Talk to San Diego estate planning and probate attorney Scott Grossman about your situation and the questions you may have. Call our lawyers at (951) 683-3704 or (866) 840-0000 for your FREE 30-minute telephone consultation. Also, order our FREE book The Insider’s Guide to California Probate and Trust Administration.
AttorneyThe Grossman Law Firm, APC · 525 B Street, Suite 1500, San Diego, CA 92101 · (951) 523-8307