Detailed Answer
An executor in Vermont must confirm the estate’s available funds before settling any creditor claim. Under 14 V.S.A. § 306, the executor must inventory and appraise all assets. This process reveals liquid funds such as cash, bank accounts, and easily sold property. The executor files this inventory with the probate court to establish the estate’s financial position. (14 V.S.A. § 306).
Next, you publish notice to creditors under 14 V.S.A. § 303, giving them six months to present claims. (14 V.S.A. § 303; 14 V.S.A. § 305). As executor, you review each claim, verify its validity, and determine if the estate has sufficient assets. You must not pay beyond the estate’s means—executors who do so risk personal liability.
Vermont law directs executors to pay valid claims in statutory priority. Secured claims, funeral expenses, and taxes rank highest. If the estate lacks funds, you prorate payments among equal-priority claims. (14 V.S.A. § 353). To raise funds, you may petition the court to sell assets or borrow against the estate under 14 V.S.A. § 358. Maintaining accurate records and seeking court approval protects your fiduciary duty and ensures fair treatment of creditors and beneficiaries.
Helpful Hints
- Obtain a complete asset inventory within two months of appointment. (14 V.S.A. § 306).
- Publish notice to creditors in a local newspaper. (14 V.S.A. § 303).
- Reconcile all estate bank accounts before authorizing payments.
- Prioritize secured claims, funeral costs, and taxes over general creditor claims.
- Seek court approval before selling estate property or borrowing funds. (14 V.S.A. § 358).
- Keep detailed records of every transaction for your final accounting to the court.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.