Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed Illinois attorney for guidance on your specific situation.
Detailed Answer
When someone dies in Illinois, their estate typically goes through probate. Probate is the court process that oversees paying debts, taxes and ongoing bills before distributing assets to heirs. A personal representative—formerly known as an executor—handles this process under the Illinois Probate Act (755 ILCS 5).
1. Authority of the Personal Representative
Once the court appoints a personal representative, they receive legal authority to manage the decedent’s assets. Under 755 ILCS 5/24-6, the representative can use estate funds to pay expenses and creditor claims before making any distributions. They must follow strict procedures and timelines to protect all parties’ interests.
2. Opening an Estate Bank Account
The representative should open a dedicated estate checking account. This account keeps personal and estate finances separate. The representative deposits any checks made out to the estate and pays expenses directly from this account, ensuring clear records.
3. Identifying and Prioritizing Expenses
Common estate expenses include funeral costs, real estate carrying charges (mortgage, property taxes, insurance), utilities, and contractual obligations. The Probate Act prioritizes payment in this order:
- Administrative costs (court fees, bond premiums).
- Funeral and burial expenses.
- Family support allowances.
- Taxes owed by the estate.
- Other creditor claims.
4. Notice to Creditors and Statutory Claims Window
Under 755 ILCS 5/18-3, the representative must publish a notice to creditors in a local newspaper. Creditors then have six months to file claims. The representative reviews and either allows or objects to each claim according to 755 ILCS 5/24-6.
5. Seeking Court Approval for Extraordinary Expenses
If an expense falls outside routine bills—such as major repairs, environmental cleanup or litigation—the representative should file a petition with the probate court for approval. The court will evaluate necessity, reasonableness and availability of estate funds before authorizing payment.
6. Record-Keeping and Final Accounting
The personal representative must keep detailed records of all receipts, disbursements and filings. Before closing the estate, the representative submits a final accounting to the court under 755 ILCS 5/24-10. This report shows how assets came in and went out, including all paid expenses and bills.
Helpful Hints
- Open a separate estate bank account immediately after appointment.
- Compile a master list of all ongoing bills (utilities, mortgage, insurance).
- Keep digital and paper copies of every receipt and invoice.
- Publish the notice to creditors within 30 days to start the statutory deadline.
- Review each creditor claim carefully before approving or contesting.
- File petitions early for any high-cost or unusual expenses to avoid disputes.