Sun. Mar 26th, 2023
Know All About Estate Claims

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Anyone who believes they are owed money or property by a deceased person can submit a claim against the estate after the person dies. Many other sorts of debts are covered by estate claims, including mortgages, credit card debt, loans, unpaid salaries, and breach of contract. Using the estate’s assets, the deceased’s estate is responsible for paying or resolving all debts and claims lodged against it.  Let us now read about the estate claims, if you’re looking forward to recovering money owed to an estate:

Estate’s responsibility:

The estate is responsible for settling the debts and claims of the deceased. All obligations are paid first once the estate is liquidated (converted to cash). All claims against a deceased person’s estate are divided into seven categories:

  1. Expenses for the funeral and burial
  2. The compensation given to the surviving spouse or child
  3. Debts owed to the government
  4. Medical, hospital, and nursing home charges that are reasonable and essential
  5. Debts owed to this State and any county, township, city, town, village, or school district received or held in trust by the decedent
  6. All other assertions are false. The residual assets are given to the heirs once any claims against the estate are resolved.

Who to contact:

An expert trusts and estates lawyer can assist an estate’s executor or personal representative in filing all legally required notices and paying valid estate claims.  Speak with an attorney who specializes in probate, trusts, and estates.

Time period:

Before an estate may be given to the beneficiaries, the process of administering it entails settling any claims against it. Anyone wishing to lodge a claim against the estate must do so within 12 months following the grant of probate (or letters of administration).

You could be at fault:

Once a claim is filed, the assets cannot be distributed until the claim is resolved.

If the executor (or administrator) has not got word of any claim after six months following the grant of probate (or letters of administration), they can divide the estate. If a claim is filed within six months following the grant of probate or letters of administration, and the money has been disbursed, the executor or administrator may be held personally accountable for the claim.

If a claim is made after the six-month term has passed and the estate has already been dispersed, the executor or administrator will not be held personally accountable. The applicant must file an application with the court to pursue a claim against the individual or people who obtained the assets (this is known as “chasing the assets”).

Choosing a solicitor:

If you’ve been tasked with settling the affairs of a deceased relative or friend, you’ll almost certainly require the assistance of a probate counsel.

It might even be a complicated procedure for you and your family that occurs at an emotional time.

A good probate solicitor, on the other hand, will assist you in understanding what to do, keeping you updated as the process unfolds, and, most crucially, ensuring that the procedure is completely legal and above board, with all appropriate taxes paid correctly.

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