Detailed Answer
Disclaimer: This article is for educational purposes and does not constitute legal advice.
Administering an estate in Missouri requires careful management of creditor claims to protect the estate and satisfy legal obligations. Missouri law outlines specific steps and priority rules for notifying creditors, filing claims, and distributing assets.
1. Give Notice to Creditors
Within 30 days after your appointment, mail written notice to all known creditors. Then publish a notice once a week for three weeks in a newspaper of general circulation in the county where probate is pending, as required by RSMo §473.443. This alerts unknown creditors of the estate administration.
2. Collect and Review Claims
After the first publication date, creditors have four months to present written claims; creditors notified by mail have 60 days to file, according to RSMo §473.467. Maintain a claims register and review each claim’s validity. You may allow, reject, or negotiate the amount. File a report of allowed and disallowed claims with the probate court.
3. Pay and Prioritize Claims
Once claims are approved, distribute estate funds according to the priority scheme in RSMo §473.087:
- Administration expenses: court costs, attorney fees, personal representative commissions
- Funeral expenses: up to $6,000
- Family allowances: up to $25,000 for surviving spouse and minor children
- Estate and inheritance taxes: owed to Missouri Department of Revenue
- Secured claims: to the value of collateral
- Unsecured claims: prorated if funds are insufficient
After paying or providing for these claims, distribute any remaining assets to heirs or beneficiaries under the will or Missouri’s intestacy laws.
Helpful Hints
- Document mailing and publication dates to enforce claim deadlines.
- Keep a detailed claims register to track status and court approvals.
- Verify claim amounts and supporting documents before payment.
- Consider negotiating or settling questionable claims to avoid litigation.
- Seek guidance from a probate attorney for complex estates or disputed claims.