Detailed Answer
Opening an Estate Account
Once the probate court appoints you as the personal representative, request certified letters of authority. Use those letters to open a dedicated estate bank account. Deposit all estate funds and pay expenses from this account. Keeping estate funds separate from personal accounts prevents co-mingling and simplifies accounting.
Prioritizing and Paying Expenses
Ohio law establishes a hierarchy for paying estate expenses and debts under Ohio Revised Code §2113.03. First, cover funeral expenses and administration costs. Next, pay taxes, secured debts (like mortgages), and finally unsecured creditors. Review the estate’s assets and liquidity to ensure you can schedule payments for ongoing bills, such as utilities, insurance, and property maintenance, to preserve estate value.
Notifying Creditors
Under Ohio Revised Code §2117.06, you must notify all known creditors in writing and publish a notice to unknown creditors in a local newspaper. Known creditors have six months from the first publication date to file claims. After the deadline, you may pay valid claims in the order mandated by §2113.03. Timely notification limits your personal liability as the fiduciary.
Handling Secured Debts and Utilities
Secured debts carry collateral. Continue timely mortgage and car loan payments to avoid foreclosure or repossession. Maintain payments for utilities, homeowner’s insurance, and property taxes to prevent service interruptions, liens, or waste. These expenses fall under administration costs and receive priority under §2113.03.
Record-Keeping and Reporting
Keep a detailed ledger for each transaction: date, payee, purpose, and amount. Submit interim accountings to the probate court and share regular updates with beneficiaries. Accurate records help the court approve your final accounting and protect against beneficiary disputes or creditor challenges.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney in Ohio for guidance specific to your situation.
Helpful Hints
- Order multiple certified copies of the death certificate promptly.
- Track creditor claim deadlines under ORC §2117.06 to avoid barred claims.
- Use an estate management checklist to monitor ongoing bills and deadlines.
- Choose a bank experienced in probate accounts for streamlined processing.
- Communicate regularly with beneficiaries about expenses and distribution plans.