Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a qualified attorney in New Mexico for guidance on estate administration.
Detailed Answer
Under New Mexico’s Uniform Probate Code, a creditor may serve a settlement demand on an executor when a claim against the estate remains unpaid. See 45-3-801 NMSA 1978. The executor must verify the debt and assemble all relevant documents to respond within 30 days or risk automatic allowance of the claim.
Key categories of documentation include:
- Letters Testamentary or Letters of Administration: Court-issued proof of your authority to act as executor.
- Death Certificate: Certified copy of the decedent’s death certificate.
- Estate Inventory & Appraisals: Court-filed inventory or recent appraisals of real property, personal property, vehicles, and business interests.
- Accounting Records: Bank statements, brokerage statements, check registers, and cash receipts showing estate assets and liabilities.
- Creditor’s Demand & Supporting Papers: The written settlement demand, original invoices or contracts, account statements, and any correspondence from the creditor.
- Will & Codicils: The decedent’s last will, codicils, and any trust documents that identify beneficiaries and asset distributions.
- Insurance Policies & Beneficiary Designations: Policies for life, auto, homeowner’s, and any liability coverage that might cover the debt.
- Tax Returns & Notices: Federal and state income tax returns for the decedent, estate tax returns, and any tax deficiency notices.
- Property Deeds & Titles: Deeds to real property, vehicle titles, and any lien documents or mortgage statements.
- Correspondence & Notes: Emails, letters, and notes showing communications with the creditor, other heirs, or professionals (e.g., appraisers, accountants).
Once gathered, organize these materials chronologically. Prepare a summary of the claim’s validity showing why the estate should honor, reduce, or dispute the amount. File any response or objection in the probate court if you plan to contest the demand.
Helpful Hints
- Keep digital and physical copies of every document you collect.
- Use a checklist tied to each claim to track missing items.
- Confirm critical dates: date of death, probate filing date, and settlement demand deadline.
- Work with an estate attorney if the demand involves complex transactions or large sums.
- File objections promptly in the probate court to avoid an automatic allowance of the claim.
- Maintain clear, dated correspondence with all creditors to document your diligent efforts.