Detailed Answer
As an executor in West Virginia, you act as a fiduciary responsible for paying valid creditor claims from estate assets. West Virginia Code §44-2-16 requires you first to pay funeral expenses and administration costs, then valid claims.§44-2-16 Before you settle any claim, you should confirm that the estate holds sufficient liquid funds to cover the payment and to reserve for potential future claims or taxes.
Here’s how to confirm available funds:
- Obtain Letters Testamentary: File the will and receive official appointment from the county probate court. This gives you authority to access estate accounts.
- Inventory Assets: Under WV Code §44-2-14, prepare a full inventory of estate property, including bank accounts, investment portfolios, and business interests.§44-2-14
- Verify Account Balances: Request up-to-date statements from banks and brokerages. Note any pending deposits or liens.
- Calculate Reserves: Estimate administrative expenses, taxes, and a cushion for late-filed claims. West Virginia gives creditors four months from notice publication to file. See WV Code §44-2-15.§44-2-15
- Review Claims: Match each creditor’s notice to the inventory. Confirm the claim’s validity and amount.
- Make Payments: Issue checks only if post-verification balances exceed your reserved amount. Keep clear records of each disbursement.
Failing to confirm funds before payment can expose you to personal liability for unauthorized or premature distributions. If funds run short, creditors may seek to hold you responsible.
Helpful Hints
- Keep detailed records: Track every asset, receipt and disbursement.
- Communicate with beneficiaries: Let them know the estate’s financial status.
- Use escrow or trust accounts: Separate estate funds from your personal accounts.
- Consult a probate attorney: They can guide you through West Virginia’s notice and filing requirements.
- Monitor deadlines: Ensure you meet publication and filing timelines for creditor claims.
Disclaimer: This article explains West Virginia probate rules for educational purposes only. It is not legal advice. Consult an attorney for guidance on your situation.