Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
When a loved one in Maine passes away, their estate enters probate. During this process, the personal representative (sometimes called an executor) must manage estate expenses and pay ongoing bills before distributing assets to heirs. Here’s how to handle key tasks under Maine law:
1. Appointment and Bond
After filing a petition, the court appoints a personal representative. The court may require a bond to protect the estate against mismanagement. See 18-B MRSA §3-206.
2. Open an Estate Bank Account
Immediately open a separate estate checking account in the decedent’s name. Deposit all estate funds into this account. Never mix personal funds with estate funds. This account pays expenses, bills and taxes.
3. Identify and Pay Ongoing Bills
Compile a list of ongoing expenses such as mortgage payments, utilities, insurance premiums and property taxes. Prioritize timely payment to avoid penalties or foreclosure. Under 18-B MRSA §3-801, the personal representative must pay reasonable expenses of administration and claims allowed against the estate.
4. Handle Creditor Claims
In Maine, you must notify known creditors and publish a notice to unknown creditors. Creditors generally have six months from the date of notice to file claims. Review and either allow or contest each claim. Pay approved claims from the estate account in order of priority (18-B MRSA §3-807).
5. Seek Court Authorization for Major Expenses
If the estate lacks sufficient liquidity, petition the probate court for approval to sell assets or borrow funds. The court will review proposed sales or loans to ensure they serve the estate’s best interest.
6. Maintain Detailed Records
Keep all receipts, invoices and bank statements. You must file an accounting with the court, showing how funds were received and disbursed. Accurate records protect you from personal liability.
Helpful Hints
- Open an estate checking account immediately to isolate estate funds.
- Notify creditors and publish required notices promptly to fix claim deadlines.
- Prioritize secured debts (like mortgages) to avoid penalties or foreclosure.
- Ask the court before selling real estate or borrowing on estate assets.
- Keep clear, itemized records to simplify your final accounting.
- Consult a probate attorney if you face complex assets, disputes or insufficient funds.