What could make the probate of a loved one’s estate even more stressful? Managing the debt that a loved one left behind.
Debt by it’s nature is stressful and managing debt that is not your own can be overwhelming and challenging. Here are some key tips to help you approach these debts and navigate creditors.
Key steps to handle debts during probate
As we have discussed in previous blog posts, you are generally not the one responsible for paying your loved one’s debts. Instead, the estate will handle those debts, which is a part of the probate process.
In order to address these debts in probate, the executor or personal representative must:
- Make a list: Just as you must take inventory of your loved one’s assets, you should also make a detailed list of the liabilities they left behind. This list will be a critical item to bring when you open a probate case in California.
- Complete the paperwork: Take time to understand the steps you must take when addressing debts – and creditors – in probate. Accurate communication and notification are essential to comply with California probate law.
Potential challenges to watch out for
While there are specific steps you must take to handle creditor claims, there are also some risks for which you should watch out. For example:
- Beware of scams: While many parties could have valid claims on your loved one’s estate, others may not. Probate proceedings are public records. Some people use that knowledge to make false claims or attempt to scam surviving family members. If an unexpected creditor makes a claim, personal representatives should take care and ensure the claim is valid before taking any action.
- Do not tolerate harassment: Even in probate, all creditors must still follow proper debt-collecting practices. They cannot harass you for payment on these debts. Understand what steps creditors are allowed to take, and what they cannot do.
Managing debts and creditors during probate can be stressful. Working with an experienced probate attorney can provide peach of mind and ensure the process is handled correctly.