Detailed Answer: Notifying Creditors and Handling Claims in Oregon
When someone dies with assets in Oregon, the personal representative (formerly “executor”) must notify known and unknown creditors and address their claims under Oregon Revised Statutes (ORS) Chapter 113. Follow these steps to comply with Oregon law.
1. Appoint a Personal Representative
File a Petition for Administration with the probate court in the county where the decedent lived (ORS 113.005). Once the court issues Letters Testamentary or Letters of Administration, the representative gains authority to act on behalf of the estate.
2. Publish Notice to Creditors
Within one month of appointment, publish a Notice to Creditors in a general-circulation newspaper in the county of administration (ORS 113.065). This public notice alerts unknown creditors and starts the claim deadline. Oregon law requires publication once a week for four consecutive weeks. ORS 113.065
3. Mail Notice to Known Creditors
Within one month of appointment, mail a Notice to Creditors directly to each creditor known to have a claim against the estate, including secured and unsecured creditors (ORS 113.105). Use certified mail with return receipt to confirm delivery. ORS 113.105
4. Monitor the Claims Period
Creditors must file claims within four months after the first newspaper publication date (ORS 113.085). Late claims require court approval and may be barred. ORS 113.085
5. Review and Allow or Disallow Claims
The personal representative reviews each filed claim. For valid claims, the representative records an allowance and arranges payment from estate assets.
If a claim is unjustified or exceeds the estate’s value, the representative must file objections in probate court. The court may hold a hearing to resolve disputes (ORS 115.085). ORS 115.085
6. Notify Creditors of Partial Payments or Settlements
If the estate cannot fully satisfy a claim, the representative may negotiate partial payments. Confirm the settlement in writing and, if needed, obtain court approval to avoid future liability.
7. Final Distribution of Assets
After the claims period expires and claims are resolved, distribute remaining assets to heirs or beneficiaries under the will or Oregon intestacy laws (ORS 113.165). File a final accounting and petition for distribution with the court.
Helpful Hints
- Keep a detailed log of publication dates, mailing receipts, and claim forms.
- Use certified mail and maintain proof of delivery to avoid disputes over notice.
- Obtain legal advice promptly if a large or complex claim is filed.
- Confirm the publication runs meet timing requirements exactly as set by ORS 113.065.
- Consider bonding or insurance if estate assets are substantial or contested.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult an Oregon probate attorney to address your specific situation.