Disclaimer: This article is for informational purposes only. It is not legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
After a person’s death in New York, the personal representative (executor or administrator) must notify creditors and resolve claims before distributing the estate. Here are the key steps under New York law:
1. Secure Letters Testamentary or Letters of Administration
• File a probate petition or administration petition in Surrogate’s Court in the county where the decedent lived.
• Obtain letters that authorize you to act on behalf of the estate.
2. Mail Notice to Known Creditors
• Within two months of receiving letters, mail a written notice to each creditor identified in the decedent’s records or claimed by family members.
• Follow the requirements in SCPA § 310, which specifies timing and content of mailed notices.
• Link: SCPA § 310 – Notice to creditors
3. Publish Notice in a Designated Newspaper
• Publish a notice once in a local newspaper as directed by the Surrogate’s Court.
• The notice must state the date of issuance of letters and instruct creditors to present their claims.
• Publication requirements appear in SCPA § 311.
• Link: SCPA § 311 – Publication
4. Observe the Statutory Claim Period
• Creditors then have six months from the date of the first publication to present claims against the estate.
• After six months, most late claims cannot be paid unless the court allows them for good cause.
• See SCPA § 315 for filing deadlines.
• Link: SCPA § 315 – Time for filing claims
5. Review and Approve or Object to Claims
• Upon receipt, log each claim and examine supporting invoices or contracts.
• Accept valid claims and prepare payment vouchers.
• Object to claims that are unsupportable, late, or exceed the debt amount.
• File objections and request a court hearing if necessary.
6. Pay Valid Claims from Estate Assets
• Use estate funds to satisfy approved debts before distributing inheritances to beneficiaries.
• Prioritize funeral expenses, administration costs, and secured debts.
• Keep detailed records of all disbursements and retain canceled checks or receipts.
7. Close the Estate
• After paying debts and distributing assets, file a final accounting with Surrogate’s Court.
• Request discharge of your duties.
• Once the court approves, you are released from liability for the estate’s debts.
Helpful Hints
- Start identifying creditors early by gathering bills, statements, and tax records.
- Keep a calendar of mailing and publication dates to avoid missing deadlines.
- Use certified mail with return receipt to confirm delivery of notices.
- Maintain a dedicated bank account for estate transactions to simplify accounting.
- Consult with an estate attorney if you expect complex or contested claims.
- Retain all correspondence and court filings for at least seven years.