Detailed Answer — How to verify or contest a creditor’s payoff quote on an estate debt (Massachusetts)

Short answer: Do not pay on a verbal payoff. Get a written, itemized payoff statement; confirm the creditor’s claim against the estate; check whether the claim was timely presented to the Probate and Family Court; verify math, interest, fees, and security; and either negotiate, demand validation, or file an objection in Probate Court if the charge is incorrect or invalid.

Disclaimer: This is general information and not legal advice. If you need legal advice about a specific estate or claim, consult a Massachusetts probate attorney.

1. Why you must be careful

When someone dies, their personal representative (executor/administrator) manages paying valid debts before distributing assets. Paying an incorrect payoff can deplete estate assets or expose the personal representative to personal liability. Massachusetts probate law governs creditor claims and administration (see M.G.L. c. 190B for the Probate Code: https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleI/Chapter190B), and the Probate and Family Court handles disputes about claims (https://www.mass.gov/orgs/probate-and-family-court).

2. Step-by-step: Verify a creditor’s payoff quote

1. Get the payoff in writing.

   Ask the creditor for a written, dated, itemized payoff or statement that lists principal balance, accrued interest (with daily or monthly rate), late charges, fees, escrow advances, and any arrears. Do not rely on phone quotes.

2. Confirm the identity and authority of the requester.

   Confirm the creditor is who they say they are (check account numbers, lender name on last statement). If a debt collector or law firm contacts you, ask for a debt validation letter and the name of the original creditor.

3. Compare the payoff to estate records.

   Compare the payoff to the decedent’s loan agreements, recent account statements, escrow records, and your own payment records. Verify the contract’s interest rate, payment history, and whether any payments were missed or already applied.

4. Check probate filings and creditor notice deadlines.

   Determine whether the creditor has submitted a claim to the Probate and Family Court or responded to court-ordered notice. Massachusetts law and court rules set the procedures and timelines for presenting and allowing claims during estate administration (see M.G.L. c. 190B and the Probate Court guidance: https://www.mass.gov/guides/settle-an-estates-debts).

5. Request supporting documentation.

   Ask for the loan note, a full payment history, and documentation of any fees or advances. For secured debt (e.g., mortgage), ask for the recorded mortgage, payoff statement from the mortgage servicer, and whether they claim any post-death advances (taxes, insurance) charged to the loan.

6. Recalculate the claimed balance.

   Using the original loan terms and payment history, recalculate principal and interest. Look for double-counted fees, improper penalty interest, or charges incurred after the creditor should have stopped collecting (e.g., during bankruptcy or after discharge).

7. Watch for bankruptcy, statute of limitations, or paid-in-full defenses.

   Investigate whether the decedent or estate previously filed bankruptcy that discharged the debt, or whether the creditor’s claim is time-barred. These facts can defeat or reduce a claim.

8. If something is wrong, put your dispute in writing.

   Send a written dispute or demand for validation (certified mail, return receipt) specifying the items you contest and requesting proof. Keep copies of every communication.

9. Negotiate or offer a settlement when appropriate.

   Creditors sometimes accept a lesser amount to avoid litigation or delay. Document any settlement in writing and get a full release for the estate before paying.

10. File an objection in Probate Court if necessary.

    If the creditor submits a formal claim and you (as personal representative or interested party) believe it is invalid or the amount is wrong, you can file a written objection with the Probate and Family Court and request a hearing. The court can allow, disallow, or reduce the claim. Consult Probate Court rules or an attorney for procedure and timing: https://www.mass.gov/orgs/probate-and-family-court.

11. When you pay, obtain a release.

    Before paying, get a signed, written release or satisfaction that covers the exact amount paid and confirms the debt or claim is satisfied.

3. Typical defenses and challenges

• Debt already paid or credited.
• Incorrect interest or late fees charged after death or after creditor knew of death.
• Debt discharged in bankruptcy.
• Claim filed late under the Probate Code or not properly presented to the personal representative or court.
• Identity theft — debt that does not belong to the decedent.

4. Where to find Massachusetts law and court resources

• Massachusetts General Laws, Probate Code (M.G.L. c. 190B): https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleI/Chapter190B
• Massachusetts guide to settling an estate’s debts and Probate & Family Court information: https://www.mass.gov/guides/settle-an-estates-debts and https://www.mass.gov/orgs/probate-and-family-court

Helpful Hints

• Always get payoff quotes and settlements in writing and keep originals for the estate file.
• Do not distribute estate assets until creditor claims are resolved or properly reserved for — paying too early can create personal liability for the personal representative.
• Use certified mail for disputes and validation requests so you have proof of delivery.
• If a creditor demands payment quickly, ask for a short, specified extension while you verify the charge; a firm but clear written response often stalls aggressive collection tactics.
• For mortgage or secured debts, check land records to confirm the lien and exact payoff required to release the lien.
• Document every contact: who you spoke to, the date, and what was said. That record helps if you must litigate or negotiate.
• Consult a probate attorney early if the claim is large, disputed, or the estate has limited liquidity. Courts and statutory rules can be technical; prompt legal advice can protect the estate and personal representative.

If you want, provide a brief summary of the creditor’s written payoff and any documents you have, and I can outline what to check next or what a sample objection letter would list.