Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified probate attorney to address your specific situation.
Detailed Answer
When someone passes away, their assets enter the probate process to settle debts, expenses, and distribute remaining property to heirs. During probate in
1. Appointment of a Personal Representative
The probate court formally appoints a personal representative under Mississippi Code § 91-7-7 (mscode.state.ms.us/91-7-7). This individual assumes fiduciary duties to collect assets, pay debts, and distribute the estate according to the will or state law if there is no will.
2. Notifying Creditors and Identifying Expenses
Promptly after appointment, the personal representative must publish a notice to creditors (Miss. Code Ann. § 91-7-105) and mail individual notices to known creditors. This process establishes a deadline for creditors to submit claims. Typical estate expenses include:
- Funeral and burial costs
- Probate court filing fees
- Attorney and accounting fees
- Property maintenance (e.g., utilities, insurance, taxes)
3. Using Estate Funds to Pay Ongoing Bills
The personal representative manages a dedicated estate bank account. All incoming funds—such as life insurance proceeds and dividends—are deposited here. Likewise, ongoing bills and valid creditor claims are paid from this account. Mississippi Code § 91-7-27 authorizes payment of administrative expenses and debts in a specific order (mscode.state.ms.us/91-7-27).
4. Managing Insufficient Funds
If estate assets are insufficient to cover all debts, the personal representative must follow Mississippi’s priority scheme:
- Funeral expenses and estate administration costs
- Expenses of last illness
- Family allowance
- Other creditor claims
Creditors may receive partial payment based on available funds. The personal representative should maintain detailed records and inform beneficiaries of limited distributions.
5. Seeking Court Approval for Extraordinary Expenses
Certain expenses—such as major repairs or potential litigation—may require probate court approval. The personal representative files a petition outlining the proposed expense, its necessity, and anticipated cost. Upon approval, the personal representative uses estate funds to cover these exceptional items.
Helpful Hints
- Open an estate-specific bank account immediately after appointment to separate personal and estate funds.
- Maintain clear, written records of all income and disbursements.
- Send certified notices to known creditors and publish the required notice in a local newspaper.
- Review Mississippi’s creditor priority rules in Miss. Code Ann. § 91-7-27 before paying claims.
- Consult the court clerk or an attorney before approving large or unusual expenses.
- Communicate regularly with heirs to manage expectations about distributions and timelines.