Detailed Answer
When you start estate administration in Georgia, you act as the personal representative of the decedent’s will or estate. You must notify potential claimants and verify all debts before distributing assets. Under O.C.G.A. § 53-7-40 (Notice to Creditors) you must publish a notice in a newspaper of general circulation in the county of probate and serve known creditors directly via mail. The notice triggers a four-month deadline for creditors to file claims against the estate. (O.C.G.A. § 53-7-40)
After the claim period ends, you gather and review each claim. Georgia law prioritizes claims or debts in this order:
- Costs of administration, including attorney fees and court costs.
- Funeral expenses and family allowances.
- Secured claims, to the extent of the collateral value.
- Other debts and judgments.
- Taxes due to federal and state authorities.
Refer to O.C.G.A. § 53-7-50 (Priority of Payment of Claims) for the statutory order. (O.C.G.A. § 53-7-50)
When claims exceed estate assets, you prorate unsecured debts based on the asset pool. If a creditor files a claim after the deadline without court permission, the claim remains unenforceable unless the court grants an extension for good cause. You may challenge any disputed claim by filing an objection and scheduling a hearing in probate court.
Finally, you prepare a final accounting and petition the court to approve distributions. After that, you can safely distribute remaining assets to beneficiaries per the will or Georgia’s intestacy rules.
Helpful Hints
- Track all deadlines: mark publication and service dates to protect the estate from late claims.
- Maintain detailed records of notices, mail receipts, and published ads.
- Classify debts early: separate secured from unsecured to determine priority.
- Verify the validity of each claim: request invoices or judgment documents.
- Keep beneficiaries informed to reduce disputes and petitions.
- Work closely with a probate attorney to navigate complex claims and court processes.
- Use court-approved accounting forms to draft your final report.
Disclaimer: This article is for informational purposes only and is not legal advice. Consult a qualified attorney to address your specific situation.