Detailed Answer
Under Utah law, a personal representative (commonly called an executor) must manage estate assets prudently and satisfy valid creditor claims in the proper order. Confirming that sufficient funds exist before paying a creditor helps protect the estate from insolvency and shields the representative from personal liability for mispayment or premature distributions.
Why Verify Funds?
- Ensures the estate remains solvent and can cover all obligations
- Maintains the priority of claims as defined by statute
- Reduces the risk of personal liability for the executor
Step-by-Step Guide
- Complete and file an inventory of estate assets (Utah Code § 75-3-705).
- Review bank statements, investment accounts, and cash on hand.
- Allow or reject creditor claims following the claim allowance period (Utah Code § 75-3-803).
- Confirm that the estate’s liquid assets cover the full amount of each allowed claim.
- If funds are insufficient, notify the court and creditors, and follow statutory priority rules (Utah Code § 75-3-802).
- Obtain court approval before selling estate property or tapping restricted assets to satisfy debts.
Key Statutory References
- Utah Code § 75-1-301: Duties of personal representative.
- Utah Code § 75-3-705: Inventory and appraisal requirements.
- Utah Code § 75-3-803: Allowance of claims.
- Utah Code § 75-3-807: Payment of claims.
- Utah Code § 75-3-802: Priority of claims.
Helpful Hints
- Keep detailed, up-to-date estate accounting records.
- Communicate openly with creditors and beneficiaries about asset availability.
- Consider obtaining a surety bond if estate liquidity is uncertain.
- Seek guidance from a probate attorney when handling large or complex estates.
- File the inventory promptly to identify all assets early.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for advice tailored to your situation.