Accurately Recording Third-Party Claims and Payments in New Hampshire Probate Filings

Short answer: To ensure third-party claims and payments appear correctly in New Hampshire probate filings, a personal representative or executor should identify and document every claim, keep a separate estate bank account and a detailed ledger, obtain written releases or approved court orders for disputed claims, file required inventories and accountings with the probate court, and preserve supporting invoices, receipts, and correspondence. This process reduces disputes, speeds distribution, and helps satisfy the probate court’s review.

Detailed Answer

This section walks through practical steps under New Hampshire practice to make sure third-party claims (creditors, subrogated insurers, lien holders, contractors, or vendors) and any payments to them are recorded clearly and defensibly in probate filings.

1. Understand what a “third-party claim” is

A third-party claim means any claim against the decedent’s estate by someone other than the personal representative or beneficiaries. Common examples: unpaid medical bills, vendor invoices for funeral services, contractor liens, medical-insurer subrogation demands, or tort claims against the estate.

2. Start with a complete inventory and notice to creditors

Early in administration, prepare the estate inventory and publish or send the notices the probate court requires. The New Hampshire Probate Division explains local filing and notice procedures and available forms; the court will expect an inventory and eventual accountings that reflect payments to third parties.

Useful resources: New Hampshire Judicial Branch – Probate Division: https://www.courts.state.nh.us/probate/ and the New Hampshire Revised Statutes at the General Court site for statutory requirements: https://www.gencourt.state.nh.us/rsa/html/indexes/default.html.

3. Require written documentation before paying a claim

Do not pay a claim based only on a verbal demand. Ask for and keep copies of invoices, contracts, statements, explanation of benefits (for medical bills), lien documents, or judgments. The estate’s ledger entry should refer to the exact supporting document (invoice number, date, and claimant).

4. Keep estate funds separate and use a clear voucher system

Open and use a dedicated estate bank account for all estate receipts and disbursements. Record each entry with:

• date
• payee
• amount
• check or transaction number
• purpose and reference to supporting document

Keep copies of checks, electronic payment confirmations, and the underlying invoices together as a voucher packet for each payment.

5. Follow the probate court’s approval rules for disputed or large claims

Some payments may require the probate court’s approval—especially disputed claims, claims that exceed available cash, or distributions to beneficiaries while creditors remain unpaid. When in doubt, ask the court clerk whether a petition or motion is needed before payment. Cite and attach supporting documentation when you ask the court to authorize a payment.

6. Obtain releases and receipts from claimants

When you pay a third party, get a written release or receipt that confirms the claim is satisfied. If a claimant refuses to execute a release, file a notation in the estate records and consider asking the court to approve the payment and discharge the estate from future liability related to that claim.

7. Prepare clear interim and final accountings

When you file accountings required by the probate court, include an itemized list of receipts and disbursements and attach the voucher packets or a summary that ties payments to supporting invoices and releases. The court will review those documents to confirm the personal representative handled estate funds properly.

8. Keep originals and maintain an audit trail

Retain originals of contracts, bills, paid checks, court orders, and releases. Keep email or certified mail records showing notices you sent to creditors. An unbroken audit trail reduces disputes and supports your accounting if beneficiaries or creditors later challenge a payment.

9. Consult an attorney when claims are complex or contested

If a third-party claim is large, ambiguous, or disputed, consult a probate attorney. A lawyer can help you decide whether to pay, settle, litigate, or ask the court for directions. This is especially important when paying a claim may reduce beneficiary distributions or when a claimant asserts a lien on estate property.

Practical example (hypothetical)

Example: The estate receives a medical bill of $12,000. Steps that a responsible personal representative would take:

1. Confirm the bill relates to the decedent and obtain the itemized invoice.
2. Check for insurance or Medicare payment and request explanation of benefits showing insurer payments and outstanding balance.
3. Send notice to the creditor if required by the probate office and keep proof of the notice.
4. Record the unpaid amount on the estate inventory and in the ledger as a creditor claim.
5. If paying, use estate funds, create a voucher packet (invoice + EOB + check stub), and obtain a written receipt or release from the provider.
6. Include the payment in the estate accounting submitted to the probate court.

Helpful Hints

• Open a dedicated estate checking account; never mix personal and estate funds.
• Number and reference every invoice and payment in the ledger for easy cross-checking.
• Obtain written releases whenever possible before distributing estate funds.
• Keep a digital and paper copy system so you have backups of all supporting documents.
• Use accounting software or spreadsheets designed for fiduciary tracking to minimize math errors.
• If a creditor threatens litigation or asserts a lien, get legal advice promptly—court petitions can protect the personal representative from liability.
• Before final distribution, reconfirm that all known claims are paid, disputed claims are resolved, and court-required accountings are filed.
• When in doubt about a statutory deadline or filing requirement, contact the probate clerk or consult the New Hampshire Judicial Branch resources: https://www.courts.state.nh.us/probate/.

Disclaimer: This article explains general principles and practical steps but is not legal advice. It does not create an attorney-client relationship. For advice tailored to your situation, contact a licensed New Hampshire attorney or the probate court clerk.