Dealing With Creditors As A Personal Representative
Part of the probate process involves settling the claims of creditors against an estate. The personal representative 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 of Mason & Helmers, we help personal representatives with matters related to creditor claims. We also advise creditors. 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:
- When creditor claims must be brought against an estate
- Exceptions to claim deadlines for hospitals, county welfare departments and the Minnesota Department of Human Services
- To whom the personal representative must give notice of a probate proceeding
- Whether claims can be disallowed, which may become the subject of probate litigation
- Determining whether sufficient assets exist (in addition to exempt assets such as a homestead) to pay creditors
- Paying creditors according to state-prescribed priority if there are insufficient assets
- Improperly handled creditor claims that can lead to liability for the fiduciary personal representative
The personal representative may need to sell nonexempt assets to meet creditor claims. The firm will advise clients about exempt and nonexempt 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 all disputes involving creditors, the lawyers at Mason & Helmers can assist.
To learn more about creditor claims against an estate, contact Mason & Helmers today. 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.