Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific situation.
Detailed Answer
1. Appointment of a Personal Representative
Before any estate expenses or bills can be paid, the probate court must appoint a personal representative (PR) or executor. The court issues Letters Testamentary or Letters of Administration, granting the PR authority to manage estate assets and pay debts. See 58 O.S. § 291: Compensation and Expenses of Personal Representative.
2. Opening an Estate Bank Account
Once appointed, the PR should open a dedicated estate bank account. All incoming funds—bank balances, rents or proceeds from asset sales—must go into this account. Use it exclusively for estate income and payments to create a clear audit trail for the court and heirs.
3. Paying Priority Expenses
Under Oklahoma law, certain expenses take priority:
- Funeral and burial costs (58 O.S. § 287: Payment of Funeral Expenses and Costs of Administration).
- Administration costs, including court filing fees and attorney fees.
- Ongoing bills such as mortgage, insurance, utilities and property taxes to prevent asset loss.
- Debts allowed by the court (58 O.S. § 350: Allowance of Claims Against Estates).
4. Interim Distributions and Court Approval
If the estate holds sufficient liquid assets, the PR can request interim distributions or reimbursement of payments made out-of-pocket. The PR files a Petition for Interim Distribution and accounting with the probate court. The court reviews the request to ensure all priority debts are addressed before approving distributions to beneficiaries.
5. Inventory, Appraisal and Notice to Creditors
The PR must file an Inventory and Appraisal within 60 days of appointment (58 O.S. § 284: Inventory of Estate). After filing, the PR publishes notice to creditors, who then have a set period to file claims. Proper notice prevents unexpected claims after the estate is closed.
6. Final Accounting and Closing the Estate
After all expenses and bills are paid and creditor claims resolved, the PR submits a Final Accounting to the court. Upon approval, remaining assets are distributed to beneficiaries, and the estate is closed. Any unpaid bills that lack sufficient assets may be disallowed by the court.
Helpful Hints
- Open a separate checking account for estate transactions immediately after appointment.
- Keep detailed records of every receipt, invoice and bank statement.
- Prioritize insurance, mortgage and tax payments to avoid penalties or asset loss.
- Notify utility companies and mortgage holders of the decedent’s death promptly.
- File Inventory and Appraisal on time to start the creditor claim period.
- Consult the probate clerk’s office for local filing deadlines and court fees.
- Consider bonding requirements; the court may require a surety bond to protect the estate.
- Seek legal guidance before making large disbursements or selling high-value assets.