Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer: Confirming Funds Before Settling Creditor Claims in New Hampshire
As the executor of an estate in New Hampshire, you bear the responsibility to gather and manage estate assets carefully before paying any creditor. The process involves:
- Inventory Assets: Within 30 days of appointment, file an inventory with the probate court, listing all assets (see RSA 554:1).
- Assess Available Funds: Confirm liquid assets—bank accounts, brokerage accounts, cash—and estimate the value of non-liquid assets.
- Prioritize Expenses and Claims: New Hampshire law dictates the payment order: administration expenses, funeral costs, taxes, and then creditor claims (RSA 551:26).
- Verify Sufficiency: Ensure the estate holds enough funds after accounting for all priority obligations. If assets fall short, follow the pro-rata distribution rule under RSA 551:27.
- Document Payments: Maintain clear records of each payment and file a final accounting with the court for approval.
Failing to confirm available funds can expose you to personal liability if creditors are paid improperly. Always reconcile estate accounts before issuing any disbursements.
Helpful Hints for Executors in New Hampshire
- Obtain bank and investment statements to verify cash balances.
- Keep a running ledger of all estate receipts and disbursements.
- Consult the probate court’s clerk for specific filing deadlines.
- Review creditor claims promptly—RSA 551:19 requires notice to creditors and a six-month window for claims.
- Consider hiring a probate attorney if the estate has complex or disputed assets.