The probate or estate administration process aims to resolve someone’s personal obligations after they die. After fulfilling the decedent’s financial responsibilities, the personal representative overseeing their estate can then distribute what remains of their property to the beneficiaries named in an estate plan or the heirs of an individual who died without a will.
Using estate resources to cover valid debts is an important part of estate administration. Personal representatives who make mistakes during this process are at risk of liability for the debts that they did not cover.
What do Texas probate statutes require from the personal representative of an estate?
Providing appropriate notice to creditors
Those owed money by someone who dies need an opportunity to make a request for repayment in probate court. A personal representative has to conform with Texas law by providing appropriate notice to creditors through both local newspapers and direct communication.
A personal representative generally needs to move quickly after the courts appoint them to their role. They have 30 days to publish notice about estate administration in a newspaper in the country where the decedent lived. The formal notice should include the date of appointment, the address for submitting creditor claims and the name of the party accepting the claims. That might be the personal representative or the lawyer assisting them.
The personal representative may also need to communicate directly with certain creditors. Secured lines of credit, like mortgages and car loans, require direct communication about the decedent’s death. A personal representative may need to send a registered letter with proof of delivery. Many personal representatives also send letters to known creditors who provided unsecured lines of credit.
Paying debts in the proper order
After giving creditors adequate time to respond to notice of estate administration, the personal representative of a Texas estate must use estate resources to cover debts. There is a specific order of priority that focuses on certain financial obligations, including taxes and probate expenses, ahead of others, like credit card balances.
Once creditors have had an opportunity to make claims and a personal representative has made payments as appropriate, they can distribute what remains in the estate to the beneficiaries selected by the decedent or the heirs entitled to inherit the property from their estate.
Properly conforming to probate statutes is of the utmost importance for those handling the probate process. Those who properly resolve financial obligations can minimize the liability that comes with estate administration.
