Detailed Answer
When a person dies in North Dakota, a personal representative must follow specific steps to cover all estate expenses and creditor claims before distributing assets to heirs. North Dakota Century Code (NDCC) sets clear timelines and duties. Key steps include:
- Appointment of Personal Representative
An interested party files a probate petition in district court. The court examines the will (if any) and issues letters testamentary or letters of appointment. This empowers the representative to act on behalf of the estate. (See NDCC 30.1-21-01.) - Inventory and Appraisal
Within six months of appointment, the representative must file an inventory listing all estate assets and their appraised values. This step establishes the estate’s value and helps ensure sufficient funds to pay debts. (See NDCC 30.1-23-02.) - Notice to Creditors
The representative mails a notice to known creditors and publishes a notice in a local newspaper. Creditors then have four months from the first publication date to submit claims. Claims filed after this deadline are generally barred. (See NDCC 30.1-29-02, 30.1-29-04.) - Review and Payment of Claims
After the claims deadline passes, the representative reviews each claim. Valid claims receive payment from the estate. Disputed or excessive claims may require court approval. (See NDCC 30.1-28-01.) - Payment of Taxes and Expenses
The representative pays estate administration costs, funeral expenses, last illness expenses, and any federal or state taxes due. NDCC grants priority to certain expenses, such as funeral costs. (See NDCC 30.1-28-02.) - Final Accounting and Distribution
Once debts, taxes, and expenses are settled, the representative files a final accounting with the court. The representative then petitions the court to distribute the remaining assets to heirs or beneficiaries. The court reviews and approves the distribution plan. (See NDCC 30.1-21-17, 30.1-21-18.)
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Helpful Hints
- Track all notices, mailings and filings to meet statutory deadlines.
- Consult an estate attorney to ensure compliance with NDCC requirements.
- Provide timely notice to both known and potential (unknown) creditors.
- Keep clear records of funeral, administration and tax payments.
- Communicate openly with heirs about the estate’s progress.