Disclaimer: This article provides general information only and does not constitute legal advice. Consult a licensed attorney in Montana for guidance tailored to your situation.
Detailed Answer
When a creditor sends a settlement demand against an estate, an executor must assemble key documents to verify the claim and decide how to respond. Under Montana law, you must follow the claims process outlined in the Montana Probate Code (MCA § 72-3-702).
1. Estate Appointment and Authority
- Letters Testamentary or Letters of Administration
Proof of your appointment as personal representative under MCA § 72-3-303.
2. Decedent’s Planning Documents
- Last Will and Testament and any codicils.
- Trust Agreements if the decedent held assets in trust.
3. Asset Inventory
- Inventory and Appraisal filed under MCA § 72-3-402.
- Bank, Investment, and Retirement Account Statements.
- Real Estate Deeds and vehicle titles.
4. Debt and Claim Records
- Original Creditor’s Claim or Settlement Demand. Include the creditor’s name, amount claimed, due date, and supporting invoices.
- Account Statements showing outstanding balances.
- Promissory Notes and loan agreements.
- Proof of Notice you provided to beneficiaries and interested parties.
5. Correspondence and Payment History
- Email or Letters exchanged with the creditor.
- Copies of Checks or Electronic Transfers if any payments were made.
6. Insurance and Tax Documents
- Life Insurance Policies naming the estate.
- Estate Tax Returns and final income tax returns.
By gathering these items, you can evaluate the legitimacy of the claim, verify the correct amount, and ensure you meet the four-month deadline for allowance or rejection of claims (MCA § 72-3-702). Failure to respond within that time may bar the creditor from further recovery.
Helpful Hints
- Organize documents in a labeled binder or secure digital folder.
- Use a checklist to track missing items and deadlines.
- Confirm mailing dates and retain delivery receipts or tracking numbers.
- Verify creditor details—ensure the demand comes from a legitimate source.
- Keep beneficiaries informed of significant claims and potential estate liabilities.
- Consult a probate attorney if you encounter complex or disputed claims.
- Retain all records for at least three years after estate closing.