Detailed Answer

As an executor under New York law, you must gather key documents to evaluate and respond to a creditor’s settlement demand. Under the Surrogate’s Court Procedure Act (SCPA) §1804, you must admit, reject, or compromise each claim within ninety days after the date set by the court or the date of the notice to creditors to avoid default allowance (SCPA 1804).

Statutory Requirement

SCPA Article 18 governs creditor claims. Section 1804 mandates a timely response. If you fail to act, the claim becomes allowed by default.

Key Documents to Gather

1. Letters Testamentary or Letters of Administration: Obtain certified copies from the Surrogate’s Court to prove your authority as executor.
2. Death Certificate: Secure a certified copy for estate administration and to verify the claimant’s standing.
3. Original Creditor Claim: Include all invoices, statements, or promissory notes detailing the debt’s date, amount, and nature.
4. Estate Inventory and Appraisal: Prepare the inventory under Estates, Powers & Trusts Law (EPTL) §11-1.4. List all assets and liabilities with values provided by licensed appraisers (EPTL 11-1.4).
5. Preliminary Accounting: Draft an accounting of all estate receipts and disbursements to date. This helps confirm available funds for settlement.
6. Correspondence and Supporting Receipts: Gather all letters, emails, invoices, contracts, or payment receipts related to the claim. Document any partial payments or negotiations.
7. Estate Bank and Investment Records: Provide recent statements showing available cash and liquid assets.
8. Insurance Policies or Bond Information: If the claim arises from property damage or liability, include relevant declarations and coverage details.
9. Court Orders and Prior Settlements: Include any judicial rulings, prior allowances, or settlement approvals that affect the claim’s resolution.

Collecting these documents equips you to negotiate or contest the claim effectively. Missing deadlines or documentation may allow the creditor to secure a court order for payment.

Disclaimer: This article provides general information and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.

Helpful Hints

• Respond within 90 days of the notice to creditors to avoid a default allowance.
• Verify each claim’s validity by comparing invoices to estate records.
• Maintain organized digital and physical files for all documentation.
• Draft a clear cover letter when sending your response to the creditor.
• Seek legal counsel if a claim is complex, disputed, or exceeds estate liquidity.