Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
When a creditor submits a settlement demand against an estate in Utah, the personal representative (executor) must assemble thorough documentation to evaluate and respond appropriately. Under Utah Code Ann. § 75-3-801 through § 75-3-804, a creditor must present a written claim and supporting documents. To comply and protect the estate, gather the following:
- Letters Testamentary or Letters of Administration: Court-issued documents that confirm your authority as executor. These validate your capacity to review and settle creditor claims.
- Death Certificate: A certified copy. Creditors require proof of the decedent’s passing to process claims.
- Will and Codicils: The original will and any amendments. These clarify beneficiaries, asset distribution, and potential trust provisions.
- Inventory of Estate Assets and Liabilities: Prepare a detailed schedule of estate property, bank accounts, investments, real estate deeds, vehicles, and outstanding debts. Utah Code § 75-3-803(1) requires that a claim include a description of the basis for the claim and the amount.
- Accounting Records and Bank Statements: Include statements for all estate accounts and decedent’s personal accounts where debts may have originated. These show available funds to satisfy valid claims.
- Tax Returns: Federal and state returns for the decedent’s last filing period, plus estate tax returns if applicable. They help verify income, deductions, and any tax liabilities.
- Copies of Promissory Notes, Loan Agreements, and Contracts: Any documents evidencing the debt. This supports or refutes the creditor’s asserted balance.
- Correspondence with the Creditor: Include demand letters, emails, and notes from phone calls. Utah Code § 75-3-804(2) outlines notice requirements prior to suit.
- Property Appraisals and Valuations: If the creditor’s claim relates to property value, secure professional appraisals to confirm fair market value.
- Insurance Policies: Homeowner’s, automobile, malpractice, or bonding policies that may cover certain creditor claims or provide estate protection.
- Settlement Demand Document: The creditor’s formal demand, including itemized amounts, interest calculations, and supporting invoices or ledgers.
Once assembled, review each item against Utah’s probate statutes. If a claim proves valid in whole or in part, you may negotiate a settlement. For contested claims, follow the procedures in Utah Code Ann. § 75-3-804 (Notice and procedure for contested claims).
Helpful Hints
- Organize documents in a chronological folder or digital file for quick reference.
- Keep original records safe; provide certified copies to creditors.
- Mark each claim with a review date to track Utah’s 90-day response period under § 75-3-801.
- Consult Utah Code § 75-3-803 for required claim content to spot any deficiencies early.
- Use a checklist to confirm you have every item before responding to the settlement demand.
- Consider hiring a probate attorney if claims exceed available estate assets or raise complex issues.