Detailed answer
This article explains practical steps a personal representative (executor/administrator) and other interested persons can take to make sure third‑party claims and payments are accurately recorded in Massachusetts probate filings. Accurate recordkeeping protects the estate, supports court accountings, and reduces the risk of personal liability for the fiduciary. This is educational information only and not legal advice. Consult a Massachusetts probate attorney for case‑specific guidance.
What we mean by “third‑party claims and payments”
Third‑party claims are debts or demands made by persons or businesses (medical providers, credit card companies, contractors, landlords, government agencies, etc.) against the decedent’s estate. Third‑party payments are amounts the estate pays to those claimants. In probate filings these must be documented so the court and beneficiaries can see which claims were allowed, paid, disputed, or reserved for later resolution.
Key Massachusetts legal framework
- Massachusetts law governing probate and administration of decedents’ estates is codified in Chapter 190B (Uniform Probate Code). See the text of Chapter 190B: https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleII/Chapter190B.
- Practical procedures, forms, and filing instructions come from the Massachusetts Probate & Family Court. General information is available at the court’s website: https://www.mass.gov/orgs/probate-and-family-court.
Step‑by‑step process to ensure accurate recording
- Collect and organize all potential claims and invoices.
Search the decedent’s mail, email, financial statements, contracts, medical records, and business records. Ask family members and the decedent’s accountant or financial institutions for creditor information. Create a single creditor register (spreadsheet or accounting software) that lists every potential claimant, contact information, invoice dates, invoice numbers, and amounts claimed.
- Give required notices and follow Massachusetts creditor procedures.
Massachusetts law and local probate rules set procedures for notice to creditors and for filing claims. Provide direct notice to known creditors when required and follow the Probate & Family Court’s instructions on publication or other notice. See the Probate & Family Court general guidance: Massachusetts Probate & Family Court. Proper notice helps ensure claims are presented formally and on time.
- Obtain written proof of each claim before paying.
Require itemized written claims or invoices showing the services, dates, and amounts. For secured claims, demand documentation of the lien or security interest. For services (medical, funeral, repairs), get bills and itemizations. Do not rely on oral demands alone.
- Verify validity and priority before payment.
Confirm the claim is the decedent’s legal obligation and not a personal obligation of beneficiaries. Classify claims by priority (e.g., administrative expenses, funeral, taxes, secured claims, unsecured claims) so the estate pays according to legal priority. When in doubt, treat the claim as disputed and reserve funds until you can get legal advice or a court order.
- Record payments contemporaneously with supporting evidence.
When you pay a claim, create a contemporaneous record that includes the payment date, payee name, check or electronic transfer number, amount, purpose, and which invoice the payment satisfied. Attach supporting documents: the original invoice, a copy of the paid check or electronic transfer record, and a paid receipt or signed release when available.
- Maintain a clear, chronological accounting ledger.
Use an accounting ledger or software that produces an accounting report showing all receipts, disbursements, and balances. Each entry should reference the supporting document (invoice number, check number). Maintain copies of bank statements, canceled checks, electronic payment confirmations, receipts, and correspondence with claimants.
- Prepare complete accountings for the Probate Court.
When you file a formal accounting or interim/final account with the Probate Court, include schedules that list claims presented, allowed, paid, contested, or reserved. Attach or make available the supporting documentation the court expects (invoices, proof of payment, releases). Follow the Probate & Family Court’s format and local filing rules so the court and interested parties can easily verify every payment.
- Document disputed or contingent claims.
If a claimant files an objection or if you contest a claim’s validity or amount, reflect that in the accounting: list the claim as disputed, state the basis for dispute, and maintain a reserve in the estate account. File motions or petitions to resolve the dispute if necessary.
- Obtain releases or full satisfaction statements when possible.
When the estate pays in full, ask the claimant to sign a written release or satisfaction of the claim. Keep that release with the estate records so the court and beneficiaries have proof the debt was resolved.
- Keep records long enough and be ready for audits or inquiries.
Retain estate financial records, invoices, canceled checks, accounting ledgers, and court filings for a reasonable period (discuss retention with counsel or your accountant). Courts, beneficiaries, and tax authorities may request these records when reviewing the account or auditing tax filings.
Documents and exhibits to include in probate filings
- Creditor register or spreadsheet with contact details.
- Copies of invoices and itemized bills for each claim.
- Copies of notices sent to creditors and proof of publication (if applicable).
- Bank statements and canceled checks or electronic payment records showing disbursements.
- Paid receipts, lien releases, or satisfaction agreements.
- Statement of disputed claims and any related motions, objections, or settlement agreements.
When to get professional help
If claims exceed available assets, if high‑value or secured claims exist, or if complex tax or business issues arise, consult a Massachusetts probate attorney or a forensic accountant. They can help classify claims, prepare court accountings, and represent the estate in contested matters.
Important legal note: This information summarizes common practices under Massachusetts probate law (see Chapter 190B and Probate & Family Court rules). It is educational only and does not create an attorney‑client relationship. For advice about a specific estate, talk to a licensed Massachusetts probate attorney.
Helpful Hints
- Start recordkeeping on day one: open a dedicated estate bank account and route all estate receipts and payments through it.
- Keep each claim’s paperwork in a single folder (digital and/or physical) labeled with the claimant name and invoice number.
- Use accounting software or a spreadsheet template with columns for date, payee, invoice number, category, payment method, and check/transfer number.
- When paying by check, write the invoice number and purpose on the memo line; scan the front and back of canceled checks for your file.
- Require a written release when you pay a creditor in full, especially for large amounts.
- If creditors contact you, direct them to submit a written, itemized claim and an address for notices; do not admit liability orally.
- When in doubt about a disputed claim or unusual lien, get legal advice before releasing funds.
- Reference Chapter 190B and the Probate & Family Court resources for procedure and required forms: Chapter 190B and Probate & Family Court.
Disclaimer: This is general information only and not legal advice. For help with a particular estate in Massachusetts, consult a licensed probate attorney.