Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney regarding your specific situation.
Detailed Answer
As executor of an estate under Tennessee law, you have a fiduciary duty to manage estate assets and pay valid creditor claims in proper order. Before settling any creditor claim, confirm that the estate has sufficient available funds. Tennessee Code Annotated requires executors to prepare and file a full inventory of estate assets. T.C.A. § 30-2-301 helps you determine liquidity and the funds available to satisfy debts.
Tennessee law also mandates notice to creditors and sets the order of payment. Under T.C.A. § 30-2-306, valid claims are paid after funeral expenses and costs of administration but before distributions to heirs. Failing to verify available funds can expose you to personal liability if payments exhaust assets needed for higher-priority obligations.
If the estate lacks sufficient assets to pay all claims, follow Tennessee’s insolvency procedures. T.C.A. § 30-2-307 outlines distribution when assets are insufficient. You may need court approval to declare insolvency and oversee an equitable distribution plan.
Helpful Hints
- Complete a full inventory and appraisal of all estate assets as required by T.C.A. § 30-2-301.
- Review bank, brokerage, and investment account statements to verify available cash.
- Maintain a reserve for taxes, court costs, and priority debts before settling other claims.
- Provide timely notice to creditors and adhere to the claims filing deadline per T.C.A. § 30-2-306.
- Consult a probate attorney early to avoid personal liability and ensure full compliance with Tennessee probate statutes.