Detailed Answer
When someone passes away in Texas, the personal representative (executor or administrator) must act promptly to notify creditors and handle claims. Follow these steps to comply with Texas law:
1. Obtain Letters of Testamentary or Letters of Administration
To manage the decedent’s estate, you must get court-issued authority. The probate court issues Letters under Tex. Est. Code Ch. 301.
2. Identify and Notify Known Creditors
Review the decedent’s records—bank statements, bills, and mail—to list all known creditors. Within one month of receiving Letters, mail each creditor a written notice outlining the claim deadline. See Tex. Est. Code § 355.051 (§ 355.051).
3. Publish Notice to Unknown Creditors
If some creditors remain unknown, publish a notice in a newspaper in the county of administration once a week for three consecutive weeks. See Tex. Est. Code § 355.052 (§ 355.052).
4. Set Claim Deadlines
In an independent administration, creditors generally must file claims within four months after the first publication date. Late claims become barred. See Tex. Est. Code § 355.101 (§ 355.101).
5. Receive and Record Claims
When creditors submit claims, stamp each with the filing date and keep detailed records. Log the claim type, amount, and creditor information.
6. Evaluate and Approve Valid Claims
Review each claim’s accuracy and validity. Compare invoices and account statements. Approve claims the estate legally owes.
7. Pay Valid Claims
Use estate assets to pay approved creditors in the order Texas law requires. Common priorities include funeral expenses, taxes, and secured debts.
8. Dispute and Bar Invalid Claims
If you believe a claim is invalid, file an objection in probate court. The court will hear the dispute. Ensure timely objections to bar meritless demands.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Helpful Hints
- Keep a detailed mailing log for all notices.
- Save newspaper tear sheets for published notices.
- Track claim deadlines on a single calendar.
- Maintain accurate records of payments and objections.
- Consult an attorney before objection hearings.