Detailed Answer
When an individual dies in New Hampshire with outstanding debts, their personal representative (executor or administrator) must follow probate procedures to sell estate assets and pay creditors. Below are steps under state law.
1. Appointment of a Personal Representative
The court appoints an executor named in the will or an administrator if there is no will (NH RSA 551:1). This person handles estate administration.
2. Notice to Creditors
Within 30 days of appointment, publish notice in a local newspaper and mail direct notices to known creditors (NH RSA 553:2). Creditors have six months from appointment or 60 days from notice to file claims.
3. Inventory and Appraisal
File an inventory listing all estate assets within three months of appointment (NH RSA 551:20). Obtain appraisals where needed to establish fair market value.
4. Petition for Sale of Property
To sell real estate, file a petition under NH RSA 551:3. For personal property, see NH RSA 551:5. The petition must list the property, reasons for sale, and proposed terms.
5. Court Hearing and Order
The court sets a hearing and notifies heirs, beneficiaries, and creditors (NH RSA 551:4). After the hearing, the judge issues an order approving or denying the sale.
6. Sale and Application of Proceeds
Once approved, the representative conducts the sale. Proceeds pay valid claims in priority: administrative expenses, funeral costs, taxes, debts, and then legacies (NH RSA 551:14).
7. Final Accounting
After paying debts and expenses, file a final account with the court. This shows receipts, disbursements, and remaining distributions to beneficiaries.
Helpful Hints
- Start creditor notices promptly to avoid claim disputes.
- Keep detailed records of all communications and transactions.
- Obtain multiple appraisals for property valuation accuracy.
- Provide clear descriptions and terms in the petition to streamline court approval.
- Consult probate court local rules for specific filing requirements and fees.
Disclaimer: This article provides general information on New Hampshire probate procedures. It does not constitute legal advice. Consult a licensed attorney for guidance on your situation.