Stepping into the role of an executor means taking care of both what someone left behind and the bills they owed. When creditors ask for payment, Minnesota probate rules guide you on giving proper notice, staying on top of deadlines and knowing which debts to handle first.
What notice must executors give?
An executor generally must publish a notice to creditors in a qualified newspaper. The notice tells potential creditors that they are administering the estate and sets a deadline for presenting claims. In Minnesota, creditors generally have four months after the first publication of the notice to present a claim.
An executor may also need to give direct notice to certain known or reasonably ascertainable creditors, depending on the circumstances and the type of probate proceeding.
How should executors review claims?
Executors should review each claim before paying it. They may need to confirm that the debt is valid, the amount is correct and the claim was filed on time.
Minnesota law sets out procedures for presenting and handling creditor claims. Executors generally must pay valid claims from estate assets according to the legal order of priority before distributing property to the beneficiaries.
What if the estate does not have enough money?
Some estates may not have enough assets to pay every valid debt. In that case, Minnesota law establishes the order in which claims are paid.
An executor should not simply pay bills in the order they arrive. Paying a lower-priority claim too early can create problems if there is not enough money left for higher-priority claims. An executor who improperly distributes estate assets may face personal liability under certain circumstances.
When should you consider legal help?
Careful handling of probate requirements can help protect the estate and the executor. A probate attorney can review creditor claims, explain which debts must be paid and help ensure that the executor meets applicable notice and deadline requirements.
