Detailed Answer
When someone dies, their debts become claims against the estate. In Wyoming, the personal representative must follow specific procedures under the Wyoming Probate Code to negotiate and settle those claims efficiently and lawfully.
1. Publish Notice to Creditors
Within 14 days of appointment, the personal representative must publish a notice to creditors in a local newspaper and send direct notice to known creditors. (See Wyo. Stat. § 2-6-134.) This formally triggers the claims period.
2. Monitor the Claims Period
Creditors have two months from the date of first publication to present their claims. Any claim not presented within that window is typically barred. (See Wyo. Stat. § 2-6-135 and § 2-6-139.)
3. Review and Evaluate Each Claim
Once a claim arrives, verify its validity by reviewing invoices, contracts, or statements. Compare the claim with estate assets and priority rules. For allowed or disallowed claims, follow the process under Wyo. Stat. § 2-6-137.
4. Open Negotiations
Contact the creditor promptly. Communicate in writing to outline the estate’s available funds, the priority of claims, and any potential defenses (e.g., statute of limitations or lack of proper documentation). Negotiation may involve offering a lump-sum discount or installment payments.
5. Document a Settlement Agreement
Once you reach terms, draft a written agreement specifying the amount to be paid, payment schedule, and a release of further liability. Both parties should sign and date the agreement. Attach it to the estate file for court review.
6. Obtain Court Approval (if required)
If the settlement deviates from the creditor’s full claim or the distribution plan, file a petition with the probate court outlining the proposed terms. The court may hold a hearing for objections before granting approval.
7. Pay the Settled Claim
After agreement or court approval, issue payment according to the settlement. Keep records of all checks, transfers, and receipts. Update the estate accounting to reflect distributions.
8. Close the Claim File
Once payment clears, mark the claim as “settled” and retain the release document. This protects the personal representative from later disputes.
Disclaimer: This article provides general information only and does not constitute legal advice. Always consult a qualified attorney regarding your specific situation.
Helpful Hints
- Track all deadlines with a calendar and reminders.
- Keep detailed records of communications and offers.
- Evaluate whether mediation could speed resolution.
- Prioritize claims based on statutory hierarchy.
- Consider hiring a probate attorney for complex estates.