Detailed Answer
In Pennsylvania, a personal representative must confirm the estate’s liquid resources before paying any creditor claims. Pennsylvania law requires the representative to inventory all assets and calculate available cash before authorizing payments to creditors.
Under 20 Pa.C.S. § 3183, you must file a complete inventory with the Register of Wills within six months of appointment. This inventory lists all cash, bank accounts, investments, and assets that may need liquidation to fund creditor claims.
After inventory, reconcile all bank statements and account for pending estate expenses. Determine the exact cash balance by reviewing account ledgers and receipts. This step ensures you know the funds available to satisfy creditor claims and administrative costs.
Pennsylvania’s creditor claim statutes outline claim procedures and priorities. 20 Pa.C.S. § 3102 sets the form and deadline for presenting claims, while 20 Pa.C.S. § 3103 explains the priority order of payment. If estate funds are insufficient, you must prorate creditor payments or seek court approval to compromise or defer claims.
Failing to confirm available estate funds before making disbursements can expose you to personal liability for breach of fiduciary duty. Always verify that the estate has sufficient liquid assets to cover the claim and any associated administrative expenses before issuing payment.
Helpful Hints
- Submit your inventory on time under 20 Pa.C.S. § 3183.
- Maintain detailed records of all bank statements, account ledgers, and receipts.
- Review claim deadlines and requirements under 20 Pa.C.S. § 3102.
- Understand the payment priority rules under 20 Pa.C.S. § 3103.
- Consult the Register of Wills for county-specific procedures and bond requirements.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.