Disclaimer: This article provides general information on New Mexico probate procedures. It does not constitute legal advice.
Detailed Answer
In New Mexico, a personal representative must pay estate expenses and creditor claims before distributing assets. The process includes appointment, notice, inventory, claim resolution, and final distribution.
1. Appointment of Personal Representative
The probate court formally appoints a personal representative (formerly called executor or administrator). This individual holds authority to manage the estate, gather assets, and pay debts.
2. Notice to Creditors
Within three months of appointment, the representative must publish a notice to creditors in a local newspaper and mail notice to known creditors. See §45-3-803 NMSA 1978 (notice requirements) and §45-3-801 NMSA 1978 (three-month bar date for claims).
3. Inventory and Appraisal
The representative must file a detailed inventory of estate assets and obtain appraisals within three months of appointment. This ensures accurate valuation for creditors and heirs. See §45-3-602 NMSA 1978.
4. Payment of Valid Claims and Expenses
After the creditor deadline passes, the representative reviews submitted claims and pays valid ones in priority order. Payments include funeral expenses, administration costs, taxes, and statutory allowances (family, homestead, and exempt property). See §45-3-806 NMSA 1978.
5. Final Accounting and Distribution
The representative files a final accounting with the court, detailing all receipts, payments, and remaining assets. Once the court approves, it issues an order for distribution under the will or New Mexico intestacy rules. See §45-3-701 NMSA 1978.
Helpful Hints
- Maintain clear records of every transaction and correspondence.
- Adhere strictly to statutory deadlines to avoid personal liability.
- Send notices to all potential creditors, even if claims seem unlikely.
- Retain professional appraisals and receipts for court review.
- Consider consulting a probate attorney for large or complex estates.