Detailed Answer
Disclaimer: This information is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance tailored to your situation.
1. Appointment of a Personal Representative
In New Hampshire, probate begins when the court appoints a personal representative (PR). Under RSA 551:3, the PR gains authority to act on behalf of the estate once letters of appointment issue. Only the PR can collect assets, pay bills, and file court accountings.
2. Inventory and Estate Account
After appointment, the PR must prepare an inventory of estate assets. It’s critical to open a dedicated estate checking account. This keeps estate funds separate from personal funds and ensures transparent record‐keeping.
3. Notifying Creditors and Bills
The PR must publish notice to creditors as required by RSA 556:2. Creditors then have a statutory time window to submit claims. During this period, the PR can pay routine, necessary expenses—such as mortgage, utilities, property taxes, insurance, and funeral costs—out of estate funds.
4. Paying Estate Expenses
- Necessities first: RSA 556:10 directs the PR to pay funeral expenses and administration costs before unsecured claims.
- Mortgage & rent: Keep real property insured and mortgages current to avoid foreclosure.
- Utilities & maintenance: Continue essential services to preserve estate value.
- Taxes: File the decedent’s final income tax return and any estate tax returns, if required.
5. Handling Disputed or Large Claims
If a creditor’s claim exceeds available cash, the PR may ask the court for instructions. The court can authorize payment in installments or require security. In complex cases, the PR can seek approval under RSA 556:13 to advance funds for litigation or significant expenses.
6. Court Approval for Extraordinary Expenses
Extraordinary expenses—such as major repairs or ongoing business costs—often require court approval. File a petition and supporting documents with the probate court detailing the expense, benefit to the estate, and proposed payment terms.
7. Final Accounting and Distribution
Once all bills, claims, and taxes are paid, the PR prepares a final accounting under RSA 556:15. After court approval, any remaining assets distribute to heirs or beneficiaries according to the will or New Hampshire’s intestacy laws.
Helpful Hints
- Open an estate checking account immediately after appointment.
- Create a calendar of due dates for bills, taxes, and court filings.
- Keep thorough records: save invoices, canceled checks, and bank statements.
- Notify service providers (utilities, insurance, mortgage) of the decedent’s passing.
- Consult the probate clerk for local deadlines and fee schedules.
- Consider bonding: a court bond may be required to protect creditors and beneficiaries.
- Seek legal advice before paying large or contested claims to avoid personal liability.
By following these steps and relying on New Hampshire RSA provisions—such as RSA 556:10 (duties of personal representative) and RSA 556:2 (creditor notice)—you can manage estate expenses efficiently during probate.