Disclaimer: This article is for educational purposes and does not constitute legal advice. Please consult a qualified attorney to address specific legal issues.
Detailed Answer
As an executor (personal representative) under Maine probate law (Title 18-B of the Maine Revised Statutes), you must confirm that the estate has sufficient funds before settling any creditor’s claim. Maine law outlines a process to ensure the estate can cover all valid claims and administration expenses.
1. Identify and Inventory Estate Assets
Begin by locating all estate assets: bank accounts, investments, real property, personal property and life insurance proceeds. You must file an inventory with the probate court in accordance with 18-B M.R.S. §3-302 (link).
2. Review and Allow Creditor Claims
Maine requires that you publish notice to creditors and file claims within four months of appointment under 18-B M.R.S. §3-801–§3-803 (notice, allowance). Do not pay any claim until the court allows it or the statute of limitations expires.
3. Assess Liquid Funds and Priority of Payments
After claims allowance, compare total approved claims to liquid assets. Maine law prioritizes expenses in order: funeral costs, administration costs, taxes, then creditor claims under 18-B M.R.S. §3-811 (link). Ensure you reserve funds for estate taxes and administrative expenses before disbursing payments.
4. Avoid Personal Liability
If you pay claims without sufficient estate funds, you may face personal liability. Confirm account balances and projected income (e.g., pending receivables) before authorizing payments.
Helpful Hints
- Open a dedicated estate bank account to track deposits and disbursements.
- Keep detailed records of all assets, claims and distributions.
- Consult the Maine probate court clerk for filing deadlines and forms.
- Use a claims worksheet to compare approved claims to available funds.
- Consider partial payments if funds are limited and claims are numerous.
- Review Maine statutes regularly for updates.
- Seek professional guidance for complex estates or tax issues.