Executor’s Checklist: Responding to a Creditor’s Settlement Demand in Vermont

Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney before making decisions.

Detailed Answer

When an estate executor in Vermont receives a creditor’s settlement demand, gathering complete and accurate documentation helps resolve claims quickly and protects personal liability. Under Vermont law, you have a limited window to address creditor claims. See 14 V.S.A. § 308 (barred claims) and 14 V.S.A. § 309 (notice to creditors).

1. Certified Death Certificate

Obtain multiple certified copies. Creditors often require an official death certificate to validate claims.

2. Original Will and Codicils

Submit the decedent’s last will and any codicils filed with probate. If the will is already probated, include the Letters Testamentary or Letters of Administration.

3. Probate Court Filings

• Letters Testamentary or Letters of Administration.
• Filing notice to creditors under 14 V.S.A. § 309.
• Inventory and appraisement ordered by the court (14 V.S.A. § 310).

4. Estate Inventory and Asset Records

Prepare a detailed inventory showing:

• Bank and brokerage account statements.
• Real estate deeds and recent appraisal reports.
• Titles for vehicles, boats, or other titled assets.

5. Liability Documentation

• Copies of outstanding bills (medical, utility, funeral expenses).
• Loan agreements and credit card statements.
• Mortgage and line-of-credit statements.

6. Creditor’s Claim Details

Review the demand letter for:

• Date of the claim and creditor’s contact information.
• Amount claimed and supporting invoices or contracts.

7. Correspondence and Proof of Notice

Keep records of all communications with the creditor, including:

• Certified mail receipts or courier tracking numbers.
• Email exchanges and notes from phone calls.

8. Proof of Payments or Settlements

If partial payments or agreements already exist, gather cancelled checks, bank transfer records, or signed settlement agreements.

9. Accounting Records

Maintain a ledger of all estate disbursements and receipts. This demonstrates due diligence and transparency to the court and creditors.

Helpful Hints

• Start early: Vermont limit to present claims is four months after notice to creditors (14 V.S.A. § 308).
• Organize documents chronologically for easy reference.
• Keep certified copies in a secure file, both physical and digital.
• Verify creditor’s identity to avoid fraudulent claims.
• Work with a probate clerk or attorney to ensure compliance with court rules.
• Maintain a communication log to track deadlines and responses.
• Consider mediation if disputes arise over claim validity or amount.