Estate Claims

Estate claims are formal demands for payment made by creditors or individuals who believe they are owed money or property by a deceased person. These claims are typically filed during the probate process, which is the legal procedure for settling a deceased person’s estate.

Types of Estate Claims

• Secured Claims: Debts backed by collateral, such as mortgages or car loans. If the debt is not paid, the creditor may claim the collateral.
• Unsecured Claims: Debts not backed by collateral, such as credit card bills, medical expenses, or personal loans.
• Priority Claims: Certain claims are given priority over others, such as funeral expenses, taxes, and administrative costs related to managing the estate.

How Estate Claims Work

• Filing a Claim: Creditors must file a formal claim with the probate court, usually within a specified time frame after the death is published or they are notified.
• Notice Requirements: The personal representative (executor) of the estate is generally required to notify known creditors and publish a notice to creditors in a local newspaper or legal bulletin.
• Payment of Claims: Valid claims are paid from the estate’s assets. If the estate does not have sufficient assets to pay all claims, they are paid according to legal priority.
• Distribution of Remaining Assets: After all valid claims are settled, any remaining assets are distributed to the heirs or beneficiaries.

Key Points

• Purpose: The probate process ensures that the deceased’s just debts are paid before assets are distributed to heirs.
• Legal Procedure: The process for filing and paying claims is governed by state law and must be followed carefully to ensure fairness and compliance.
• Time Limits: Creditors must file claims within a set period, or their claims may be barred.

Estate claims are a fundamental part of settling a deceased person’s financial affairs and ensuring that creditors are treated fairly under the law.