Short answer: In Missouri probate, the personal representative (executor or administrator) must identify and document all third-party claims and any payments made to or by third parties, provide required notices, track and attach supporting proof to the probate record, and include those items in periodic and final accountings submitted to the court. Good recordkeeping, timely creditor notice or objection, written releases, and court approval where required are the practical steps that ensure accuracy and limit personal liability.

Detailed answer — step‑by‑step process for Missouri probate

This section explains practical steps a personal representative should follow to ensure third‑party claims and payments are recorded accurately in Missouri probate proceedings. This is a general guide, not legal advice.

1. Open the estate and learn the court’s requirements. After appointment, review the probate court’s local rules and reporting requirements. Missouri statutes and the Missouri Courts site set out notice, accounting, and administration procedures—see the Missouri Revisor of Statutes (https://revisor.mo.gov/main/Home.aspx) and Missouri Courts (https://www.courts.mo.gov).
2. Create a formal estate ledger and case file. From day one, maintain a dedicated, chronological ledger (digital and paper backup) that records every transaction affecting the estate: date, amount, payor/payee, purpose, check number or electronic transfer ID, source document, and where the document is stored in the case file. Label payments with the estate name (for example, “Estate of [Decedent]”). Consistent formatting reduces later disputes and makes court accountings straightforward.
3. Identify third‑party creditors and claimants. Actively locate known creditors, service providers, co‑owners, insurers, and parties with potential claims (contractors, lenders, medical providers). Maintain a list that includes contact info, claim type, original amount claimed, and supporting docs (invoices, contracts, statements).
4. Provide required notices to creditors and claimants. Follow Missouri notice rules for creditors and unknown claimants. Where statute or court rules require published notice or mailed notice, obtain affidavits of mailing and affidavits of publication and file them in the court record. Keep copies of certified mail receipts and proof of service for each mailed notice.
5. Elicit and document written claims. Encourage claimants to submit written, itemized claims with supporting documents (invoices, contracts, medical billing, subrogation info). When a claim arrives, date stamp it, log it into the ledger, and file the original in the case file. If a claim is filed with the court, link the court filing number to your record.
6. Evaluate and object where appropriate. Review claims against estate assets for validity and priority under Missouri law. If you dispute a claim, file a written objection in court with supporting reasons and evidence rather than paying without documentation. Record objections and the resulting court orders in your ledger.
7. Obtain releases or settlement agreements for paid claims. Before paying a disputed or material claim, get a signed release, satisfaction, or settlement agreement from the claimant and keep it in the file. The release should specify the claim paid, the amount, and that the claimant has no further claim against the estate for that matter.
8. Pay claims properly and document each payment. Use estate bank accounts and checks or traceable electronic transfers. For each payment, keep the payable order (invoice), cleared check image or wire confirmation, the signed release or receipt, and a memo referencing the claim. Record the payment in the ledger with cross‑references to all supporting documents.
9. File interim and final accountings that include all third‑party activity. Missouri probate procedure requires accountings in many administrations. In your accountings (interim and final), list each claim, amount allowed or disallowed, payments made, and any remaining obligations. Attach or reference supporting documentation and court orders approving settlements or objections. If court approval is needed for particular payments (e.g., large distributions or settlement of disputed claims), ask the court to approve the payment and include the order in the record.
10. Keep backup proof for contested or material items. Keep original contracts, invoices, email threads, proof of delivery, lien releases, mechanism of payment, and any correspondence showing negotiations. If a third party asserts a lien (mechanic’s lien, judgment, etc.), record lien documents and the date and manner of release after payment.
11. Reconcile bank statements and accounting reports regularly. Reconcile the estate checking and investment accounts monthly. Ensure ledger balances match bank balances and that every check and electronic payment has supporting documentation and a place in the case file. File reconciliations with the court or provide them to interested parties when requested.
12. Consult counsel for complex or high‑risk claims. For large creditor claims, potential subrogation (for insurance), tax‑related claims, or contested claims, discuss strategy with an attorney. Court guidance prevents mistakes that can create personal liability for the personal representative.

Where to find the controlling rules and statutes: Missouri’s statutory authority and probate procedures are available from the Missouri Revisor of Statutes (https://revisor.mo.gov/main/Home.aspx). The Missouri Courts website provides local forms and filing information (https://www.courts.mo.gov). Because deadlines and required procedures can depend on the type of administration, consult the relevant statute or a probate attorney for precise requirements.

Common problems and how to avoid them

• Unrecorded verbal agreements: avoid paying based on oral promises—get signed releases or written agreements.
• Mixing personal and estate funds: always use an estate account; mixing funds risks surcharge and personal liability.
• Missing deadlines for creditor claims: follow Missouri notice and filing deadlines—document your compliance with proof of service and publication.
• Insufficient documentation for payments: retain invoices, receipts, canceled checks, and releases linked to each ledger entry.
• No court approval when required: secure court approval for disputed or large settlements before paying.

Helpful hints

• Start a searchable digital folder system the day you are appointed: index by claimant name, claim type, and date.
• Use a simple spreadsheet or accounting program (or the estate’s attorney’s software) to run periodic reports that match your ledger to bank statements and to the probate accountings filed with the court.
• When paying a claim, include a memo line naming the claimant and the claim number or invoice date to make audit trails easier.
• For published creditor notices, save the affidavit of publication and the newspaper tear sheet—file both with the court.
• File an interim accounting if the estate will be open for a long time—this keeps creditors and heirs informed and reduces later disputes.
• Obtain releases for payments to family members or insiders; courts scrutinize related‑party transactions.
• If an insurance company is involved (for creditor or damage claims), track communications and subrogation rights and get written confirmations of any negotiated settlements.