Dealing With Creditors as a Personal Representative
Part of the probate process involves settling the claims of creditors against an estate. The personal representative (PR) is charged with paying valid claims. These can include routine bills, mortgages, taxes, funeral expenses and expenses from a final illness.
At the St. Paul, Minnesota, law firm, Rodney J. Mason, Ltd., the attorneys help personal representatives with any matter related to creditor claims. Clients are educated in the process and receive assistance with disputes, litigation and questions arising from claims of creditors. They get information about issues such as these:
- Creditor claims must be brought against an estate within one year of the date of death.
- Exceptions to the one-year rule for submission of claims include hospitals, county welfare departments and the Minnesota Department of Human Services.
- The personal representative or trustee must place a Notice of Creditors in local newspapers so creditors are able to seek the money that is owed them. The PR must also notify the Department of Human Services.
- Claims against the state can be disallowed; this may become the subject of probate litigation.
- The personal representative must ensure that sufficient assets exist (in addition to exempt assets such as a homestead) to pay creditors.
- The personal representative must pay creditors according to state-prescribed priority if there are insufficient assets.
The PR may need to sell non-exempt assets to meet creditor claims. The firm will advise clients about exempt and non-exempt property under Minnesota law.
Many of the steps involved in handling creditor claims may become subjects of litigation. Creditors may contest the priority of payment. They may dispute the disallowance of their claims. Creditors whose claims are not paid may dispute the allowance of other creditors' claims. In these, and in all disputes involving creditors, the law firm of attorney Rodney J. Mason can assist.
Contact Us
To learn more about creditor claims against an estate, contact Rodney J. Mason, Ltd. The firm's lawyers serve clients in the Minneapolis-St. Paul area and beyond. Call 651-323-2548 or 877-389-5533 (toll free) to set up an appointment. Spanish- and German-speaking clients are encouraged to call.
