Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
During North Dakota probate, the personal representative handles estate expenses and ongoing bills. The process ensures bills are paid in order and estate assets are protected.
1. Appointment of a Personal Representative
The court issues Letters of Administration or Letters Testamentary, appointing a personal representative. These letters grant authority to manage estate funds. See NDCC 30.1-17-02: Appointment of personal representative.
2. Opening an Estate Bank Account
Once appointed, the representative must open a separate estate bank account. They deposit estate funds and use this account for paying approved expenses. This segregation protects personal assets.
3. Priority of Claims and Expenses
North Dakota law sets the order for paying claims. Priority covers funeral expenses, administration costs, taxes, secured claims, and unsecured debts. See NDCC 30.1-19-01: Priority of claims and allowances.
4. Authority to Pay Expenses
The personal representative may pay reasonable expenses without prior court approval, such as utility bills and property maintenance. For unusual or large expenditures, court authorization is required. See NDCC 30.1-19-02: Allowance for expenses.
5. Managing Ongoing Bills
Ongoing obligations—like mortgages, insurance, and utilities—must be maintained to prevent liens or penalties. The representative pays these from the estate account and later reports them in the final accounting.
6. Record-Keeping and Reporting
Keep detailed records of all disbursements, invoices, and communications. The court requires a final accounting showing all payments. Accurate records help avoid disputes and court delays.
Helpful Hints
- Collect all outstanding bills and notify service providers of the representative’s authority.
- Keep receipts and maintain a clear paper trail for every expense.
- Consult the court clerk on required filings and deadlines.
- Consider bonding requirements; some estates need a surety bond before expenses are paid.
- Seek professional advice for complex assets like real estate or business interests.