Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
When you act as a personal representative (executor) in Florida, you must identify, evaluate and pay valid creditor claims against the estate in the order required by law. Florida law sets strict deadlines and priorities for claims. Following these rules helps you avoid personal liability and protect estate assets.
1. Notice to Creditors
Within 30 days of appointment, you must publish a Notice to Creditors in a local newspaper and mail notice to known creditors. Known creditors then have 90 days from the first publication date to present claims. Unknown creditors have 2 years from the decedent’s date of death to file.
See Florida Statutes §733.702 for deadlines.
2. Reviewing Claims
When a claim arrives, verify its validity. Confirm the debt, amount due and that it relates to decedent’s obligations. You may request supporting invoices, account statements or judgments.
3. Priority of Payments
Florida Statutes §733.705 sets the order of payment:
- Costs of administration (court fees, attorney fees, bond premiums).
- Funeral expenses (up to $6,000) and estate taxes.
- Family allowance and homestead allowance.
- Expenses of last illness (medical bills).
- Secured claims to the extent of collateral value.
- Unsecured claims (credit cards, personal loans).
Pay each category in full before moving to the next. If estate assets are insufficient, creditors in lower categories may receive nothing.
4. Rejecting and Resolving Disputed Claims
If you dispute a claim’s amount or validity, file a written rejection within 30 days after presenting the claim for payment. Enter a rejection notice in court records. Creditor may then seek court review.
5. Final Accounting and Distribution
After all valid claims and expenses are paid or provided for, prepare a final accounting. File it with the court and seek approval. Once approved, distribute remaining assets to beneficiaries.
Helpful Hints
- Keep detailed records of notices, claims received, and payments made.
- Use estate bank accounts; avoid mixing personal funds.
- Monitor deadlines: late or missed claims can create personal liability.
- Consult a probate attorney for complex claims or disputes.
- Communicate transparently with beneficiaries to prevent conflicts.
- Verify secured claims’ collateral values before paying.
- Retain professional appraisers for estate assets if needed.