Late Creditor Claims Against an Ohio Estate — What Can Happen

Quick overview: When a person dies in Ohio, creditors normally must present claims against the decedent’s estate within the time limits set by Ohio law. If a creditor waits and files after the applicable notice period ends, the estate’s personal representative (executor) and the probate court generally can bar that late claim — but there are important exceptions and procedures that can allow a late claim in some situations.

How Ohio sets the deadline for creditor claims

Ohio law requires a personal representative to notify creditors and sets a time period for presenting claims. When notice is published under Ohio Revised Code Section 2117.06, a creditor normally must present a claim:

• within four months after the date of the first publication of the notice to creditors, or
• within sixty days after the mailing of a written notice to the creditor if the creditor was personally served by certified mail — whichever is later.

See Ohio Rev. Code § 2117.06 and § 2117.07 for the statutory notice and timing rules: R.C. 2117.06 and R.C. 2117.07.

What happens when a creditor files after the notice period has expired

There are three typical outcomes when a claim arrives late:

1. Personal representative objects and the claim is barred.

   If the personal representative follows the statutory notice procedure and a creditor does not present a claim within the applicable period, the personal representative can object and ask the probate court to disallow the late claim. If the court finds the time limit was properly applied, the late claim will usually be barred from payment from estate assets.

2. Court allows the late claim for good cause.

   Ohio courts may permit late claims in limited circumstances. Common reasons a court may allow a late filing include lack of actual notice to the creditor (the creditor never received the mailed notice), fraudulent concealment of the claim by the personal representative or others, excusable neglect, mental or physical incapacity of the creditor, or other equitable reasons. A creditor who files late must usually ask the probate court for leave to file late and present evidence explaining the delay and why allowing the claim would be fair.

3. Creditor pursues an independent lawsuit.

   If the probate court disallows a late claim, the creditor may still have other options outside the probate claim process. For example, a creditor with an independent basis for collection (a secured creditor, or a debt enforceable by a separate lawsuit) may sue the estate or the liable parties directly — subject to applicable statutes of limitation and procedural rules. Permission from the probate court may be required for certain post-disallowance actions.

Factors the court will consider when deciding whether to allow a late claim

• Whether the creditor actually received statutory notice (and when).
• Whether the creditor acted promptly after discovering the estate or the debt.
• Whether the delay prejudiced beneficiaries or other creditors (for example, if estate assets were distributed in the meantime).
• Whether there was fraud, concealment, incapacity, or excusable neglect that explains the delay.
• Any applicable statutory exceptions (for example, secured claims or claims that are not subject to the probate notice rules).

Practical consequences if a late claim is allowed or disallowed

If the probate court allows the late claim, the creditor can share in distribution to the extent estate assets remain and according to Ohio priority rules for claims. If the claim is disallowed, the creditor generally cannot be paid from estate funds, but may attempt other legal remedies such as suing an individual who personally guaranteed the debt or enforcing a security interest (mortgage, lien) outside of the probate claims process — subject to statutes of limitation and other defenses.

What beneficiaries and personal representatives should do when they receive a late claim

• Do not ignore the filing. Treat it as a formal filing that requires response.
• Review the probate file and the estate’s notice record to confirm whether statutory notice was properly given. Keep copies of publication notices, mailed letters, and certified mail receipts.
• If you are the personal representative, consider filing a written objection and asking the court for instructions on whether to allow payment.
• If you are a beneficiary, notify the personal representative and keep records. If estate assets have already been distributed, notify a probate attorney immediately about potential remedies and the possibility of surcharging the representative.

Example (hypothetical)

Suppose an estate publishes a notice to creditors on January 1 and mails certified-mail notice to known creditors. A small supplier never received the mailed notice due to an address error and files a claim on April 25 (after approximately 115 days). The supplier petitions the probate court to accept the late claim, showing it never got the mailed notice and that it filed promptly after learning of the death. The court may allow the late filing if it finds the supplier lacked actual notice and the late filing does not unfairly prejudice other creditors or beneficiaries.

Helpful hints

• Document everything: keep published notices, copies of mailed notices, and certified-mail return receipts.
• If you are a creditor who did not receive notice, move quickly to file a claim and a petition to allow late filing explaining your lack of notice.
• If you are a personal representative, respond promptly to late claims and consult the probate court for guidance; don’t pay questionable claims without court approval when the deadline has passed.
• If estate distributions have already been made, ask a probate lawyer about surcharge actions, recovery from the personal representative, or other remedies.
• Remember secured creditors (mortgages, liens) may have remedies outside the probate-claim process; deadlines and rights for those claims differ from the general creditor notice rule.
• Statutes of limitation still apply to underlying debts. A late probate claim may be denied even if a later lawsuit would be time-barred — so consult an attorney about timing.

Where to look in Ohio law: See Ohio Rev. Code § 2117.06 (notice to creditors) and § 2117.07 (time for presenting claims): https://codes.ohio.gov/ohio-revised-code/section-2117.06 and https://codes.ohio.gov/ohio-revised-code/section-2117.07. For specific situations and procedures, review the probate court rules for the county where the estate is open and consult an Ohio probate attorney.

Disclaimer: This article is for general information only and does not provide legal advice. It does not create an attorney-client relationship. For advice about a specific situation, contact a licensed Ohio probate attorney.