Detailed Answer
When someone dies in Michigan, the appointed personal representative must notify the decedent’s creditors and handle any claims against the estate. These steps help ensure that valid debts are paid before assets are distributed to beneficiaries.
1. Appointment of a Personal Representative
Before notifying creditors, a probate court issues “Letters of Authority” to a personal representative (also called an executor or administrator). This person gains the legal power to act on behalf of the estate.
2. Identifying Known Creditors
The representative should gather bills, statements and account records to create a list of all known or reasonably ascertainable creditors.
3. Sending Notice to Known Creditors
Under MCL 700.3801, the personal representative must mail written notice to each known creditor. This notice must go out within 3 months after the Letters of Authority are issued. Creditors receiving mailed notice then have 30 days to file a claim in the probate court.
4. Publishing Notice to Unknown Creditors
For creditors who cannot be identified, Michigan law requires publication. Per MCL 700.3803, the representative must:
- Publish a notice in a local newspaper once a week for three consecutive weeks, starting within 10 days of appointment.
- File proof of publication with the probate court.
Creditors learning of the estate through publication have 4 months from the first publication date to file their claims (MCL 700.3804).
5. Reviewing and Resolving Claims
After the mailing and publication deadlines pass, the personal representative evaluates each filed claim. If allowed, the claim is paid from estate assets. If denied—because it is late or invalid—the creditor may petition the probate court for a hearing.
6. Final Accounting and Distribution
Once all valid claims and administrative expenses are satisfied, the representative prepares a final accounting for the probate court. When approved, remaining assets distribute to beneficiaries or heirs according to the will or Michigan’s intestacy rules.
Disclaimer: This article is for informational purposes and does not constitute legal advice. For guidance tailored to your situation, consult a licensed Michigan attorney.
Helpful Hints
- Start identifying creditors early by reviewing bank statements, credit cards and loan documents.
- Keep proof of mailing and publication for the probate file.
- Track claim deadlines on a calendar to avoid missing filing windows.
- Respond promptly to any probate court inquiries or creditor disputes.
- Consider professional help if the estate has complex debts or many creditors.