Detailed Answer
When you serve as executor of an Ohio estate, you hold a fiduciary duty to manage assets responsibly. Before settling any creditor claim, confirmed estate funds are essential. Here’s how you can ensure proper handling:
- Prepare an Inventory and Appraisement. Ohio law requires you to file an inventory of estate assets with the probate court within three months of appointment. See Ohio Rev. Code §2109.301 (codes.ohio.gov/2109.301). This step establishes what funds and property the estate holds.
- Open an Estate Bank Account. Deposit cash, sale proceeds and dividends into a dedicated estate account. Keep personal and estate finances strictly separate.
- Review Creditor Claims Procedure. Under Ohio Rev. Code §2113.36 (codes.ohio.gov/2113.36), creditors must present claims within six months of the decedent’s death. You may allow or reject each claim in writing.
- Verify Available Liquid Assets. Before approving a valid claim, confirm that the estate account holds sufficient funds after reserving for administration costs, attorney fees, taxes and family allowances. Ohio law directs payment order in §2113.09 (codes.ohio.gov/2113.09).
- Maintain Detailed Records. Document every payment, keep copies of checks and create a ledger. Proper accounting protects you from personal liability.
Helpful Hints
- Consult the probate court clerk for local filing deadlines and forms.
- Obtain multiple appraisals for valuable assets to ensure accuracy.
- Set aside a contingency reserve (often 5–10% of estate value) for unexpected liabilities.
- Communicate with heirs and beneficiaries about the estate’s timeline and cash flow.
- Consider hiring a probate attorney or accountant if you face complex assets or large creditor claims.
Disclaimer: This article provides general information about Ohio probate law and should not be construed as legal advice. Consult a qualified attorney for guidance tailored to your specific situation.