Disclaimer: This article is for educational purposes and does not constitute legal advice.
Detailed Answer
As executor (known in Wisconsin as a “personal representative”), you hold a duty to gather, manage, and distribute estate assets in accordance with state law. Before settling any creditor claim, Wis. Stat. §867.04 requires you to file an inventory of estate assets with the probate court (https://docs.legis.wisconsin.gov/statutes/statutes/867/04). This inventory ensures you understand available funds.
After inventory, you must follow the claims process under Wis. Stat. §858.03 (https://docs.legis.wisconsin.gov/statutes/statutes/858/03). You must notify known creditors and allow time for claims to be filed. Next, review each claim and confirm whether the estate holds sufficient liquid assets. Wis. Stat. §857.19 (https://docs.legis.wisconsin.gov/statutes/statutes/857/19) governs payment of claims and limits payments to the estate’s available funds.
Failing to confirm funds before payment can expose you to personal liability if the estate lacks liquidity. To manage risk, prepare a detailed asset schedule, including bank balances, investments, and readily saleable property. Compare this total with the sum of approved claims before issuing payments.
Helpful Hints
- Compile a complete inventory of assets and file it promptly with the probate court.
- Notify all known creditors and allow the statutory period for claims.
- Prioritize claims according to Wis. Stat. §857.19 to understand payment order.
- Keep accurate records of all transactions and communications with creditors.
- Consult a probate attorney to review large or complex claims before payment.