Detailed Answer

When a creditor submits a settlement demand against an estate in Tennessee, an executor must verify the claim before approving or negotiating payment. Tennessee law governs creditor claims and requires the executor to gather key documents to evaluate the demand, comply with filing deadlines, and defend the estate against improper claims. See Tenn. Code Ann. § 30-2-306 (https://www.capitol.tn.gov/legislation/code/t30c2.html).

Key Documents to Collect

• Letters Testamentary or Letters of Administration: Court-issued proof of your authority as executor.
• Death Certificate: Certified copy to confirm the date of death and trigger the creditor claim period.
• Last Will and Codicils: Establish distribution terms and identify beneficiaries.
• Creditor’s Claim Form or Demand Letter: Original demand, including date of claim, amount, and nature of the debt.
• Contracts or Agreements: Evidence of contractual obligations supporting the debt (e.g., service contracts, loan agreements).
• Invoices, Receipts and Statements: Itemized bills or account statements that substantiate the claimed amount.
• Proof of Delivery or Performance: Shipping records, signing logs, work orders, or acceptance certificates that show the decedent received or completed services.
• Estate Inventory and Appraisal: Asset list filed with probate court and any valuation reports for real property or personal assets.
• Bank and Brokerage Records: Account statements to confirm balances, transfers, and outstanding obligations.
• Tax Returns: Recent federal and state returns to cross-check deductions, credits, or liabilities related to the claimed debt.
• Correspondence and Communications: Emails, letters, or notes documenting dispute, acknowledgment, or negotiation with the creditor.
• Proof of Notice to Creditors: Publication notice or mailed notices as required under Tenn. Code Ann. § 30-2-307 (notice procedures).

How to Use These Documents

Review each item to confirm the authenticity and accuracy of the creditor’s demand. Match invoices to contracts, verify delivery dates, and ensure the claim falls within the two-year statutory period. If you identify discrepancies—such as inflated charges or missing contract terms—prepare a written response and consider negotiating a reduced settlement.

If a claim appears invalid or contested, you may file an exception in probate court to dispute the claim. Keep all records organized, and track deadlines: a late-filed claim may lose priority, while the estate risks paying valid claims if deadlines lapse.

Helpful Hints

• Set a calendar reminder for the two-year creditor claim deadline under Tenn. Code Ann. § 30-2-306.
• Send or receive all notices via certified mail to document service dates.
• Keep originals in a secure file and share copies with your estate attorney or CPA.
• Use a spreadsheet to track each claim, its status, and related communications.
• Consult the probate court clerk for local filing requirements and fee schedules.
• When in doubt about a disputed claim, seek guidance from a qualified probate attorney.
• Maintain clear records of any settlement negotiations or court-approved payments.

Disclaimer

This article is for informational purposes only and does not constitute legal advice. Always consult a licensed attorney in Tennessee for advice specific to your situation.