Detailed Answer
When someone dies in Pennsylvania, the appointed personal representative (executor or administrator) must notify the decedent’s creditors and manage any claims against the estate. Under the Pennsylvania Consolidated Statutes, Title 20, Chapter 31, the process follows clear steps and strict deadlines.
1. Secure Letters and Identify Creditors
• File a petition in the Orphans’ Court to obtain letters testamentary (if there’s a will) or letters of administration (if no will).
• Review the decedent’s records—mail, email, bills and account statements—to compile a list of known creditors.
2. Provide Direct Notice to Known Creditors
• Within three months after letters issue, send each known creditor a written notice by certified mail, return receipt requested.
• State the deadline to present claims: known creditors have two months from the date they receive notice to file a claim (20 Pa.C.S. § 3102(a)).
3. Publish Notice for Unknown Creditors
• Publish a notice once a week for three consecutive weeks in a newspaper of general circulation where the decedent lived.
• The publication must appear within three months after letters issue and inform creditors to present claims.
• Creditors not entitled to personal notice and unknown creditors have six months from the date letters issue to file claims (20 Pa.C.S. § 3102(b)).
4. Receive, Review and Admit or Deny Claims
• Track incoming claims and verify they are filed on time and include required documentation.
• For valid claims, approve them for payment from estate assets.
• If you dispute a claim’s validity or amount, file an exception under the Orphans’ Court Rules to resolve the dispute in court.
5. Pay Valid Debts and Close the Estate
• Prioritize payment: funeral expenses, administration costs, taxes, secured debts, then unsecured debts.
• After paying all valid claims and resolving disputes, file a petition for distribution or to close the estate. Obtain a court order to distribute remaining assets to beneficiaries.
Helpful Hints
- Keep detailed proof of service for direct notices (certified mail slips).
- Save tear sheets or affidavits of publication from the newspaper.
- Use a spreadsheet or legal software to track deadlines and claim statuses.
- Check local Orphans’ Court rules for additional notice or filing requirements.
- Remember to notify government entities, such as the IRS and Pennsylvania Department of Revenue, for potential tax claims.
- Consider consulting a probate attorney if the estate is complex or claims are substantial.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.