Detailed Answer
When a creditor submits a settlement demand, an executor in Virginia must compile clear proof to confirm or contest the debt. Virginia law requires claims presentation under Virginia Code 74.2-309. You should gather documentation that establishes the claims legitimacy, the estates assets and liabilities, and compliance with probate procedures.
1. Creditors Claim Materials
- The original written demand or claim form.
- Copies of invoices, contracts, promissory notes, or statements showing the debts amount and due date.
- Any security agreements or liens supporting a secured claim (e.g., mortgage, UCC financing statement).
- Proof of delivery: certified mail receipts or return-receipt cards.
2. Decedents Estate Records
- The death certificate to confirm the date of death.
- Letters testamentary or letters of administration issued by the court.
- A complete estate inventory (Virginia Code 74.2-610) (§64.2-610).
- Appraisals or statements of value for significant assets (real estate, vehicles, investment accounts).
- Bank and brokerage account statements showing balances on the date of death.
3. Creditor Correspondence Log
- All letters and emails exchanged with the creditor.
- Notes summarizing phone calls and in-person meetings.
- Any partial payment records if the estate has already paid part of the claim.
4. Estate Financial Records
- Cancelled checks or payment vouchers for estate disbursements.
- General ledger or accounting records tracking estate income and expenses.
- Tax returns filed for the decedent in the year of death and for the estate.
With this documentation, you can verify the creditors right to payment and determine whether to negotiate, pay in full, or dispute the amount. Under Virginia Code 74.2-309, you have five months from the date letters are issued to either admit or deny a claim. Timely review and response help protect the estate from liability and preserve assets for rightful beneficiaries.
Helpful Hints
- Organize files by creditor and date to avoid missing deadlines.
- Keep digital and paper copies of all documents and correspondence.
- Use certified mail or courier to track delivery of your responses.
- Review Virginias probate statutes regularly to ensure compliance: §64.2-309.
- Consider consulting a probate attorney before settling complex or disputed claims.
Disclaimer: This article provides general information under Virginia law. It is not legal advice. Consult a licensed attorney for guidance on your specific situation.