Disclaimer
This article is for educational purposes only and does not constitute legal advice. For advice specific to your case, consult a licensed Texas attorney.
Detailed Answer
When an executor (personal representative) receives a creditor’s settlement demand in Texas, gathering comprehensive documentation ensures you respond accurately and protect estate assets. Under Tex. Est. Code §355.051, you may negotiate and settle claims against the estate. Here are the key documents to assemble:
- Letters Testamentary or Letters of Administration: Show your authority to act as executor (Tex. Est. Code §53.052).
- The Will and Related Probate Filings: Include the original will, any codicils, the probate petition, and order admitting the will to probate.
- Inventory and Appraisement: Provide the court-approved list of estate assets and their valuations (Tex. Est. Code §285.002).
- Estate Bank and Financial Statements: Show available cash and account balances to verify payment ability.
- Accurate Claim Records from the Creditor: Obtain detailed invoices, billing statements, contracts or agreements, and an itemized breakdown of principal, interest, and fees.
- Proof of Delivery or Performance: Include receipts, shipping records, service logs or work orders demonstrating that the creditor performed under the contract.
- Communications Log: Compile emails, letters, or notes of phone calls between the executor and creditor to trace settlement negotiations.
- Appraisals or Valuations: If the creditor claims a secured debt, gather property or asset appraisals to confirm the debt’s value.
- Insurance Policies and Coverage Information: If an insurance policy might cover the claim, include policy terms and correspondence with the insurer.
- Estate Tax and Income Tax Filings: Provide federal estate tax returns or Form 706 filings if relevant.
After collecting these documents, review the claim under Texas law and consult with an attorney if the claim appears invalid, inflated, or disputed.
Helpful Hints
- Organize documents by category with clear labels and dates.
- Double-check all values and calculations for accuracy.
- Keep copies of every correspondence and file original notices with the court clerk when required.
- Respond to settlement demands within the timeline set by the creditor or court rules to avoid default.
- Consider hiring a probate attorney when claims exceed estate liquidity or when legal complexities arise.