How Do Probate Claims Work?
In the event of your death, is your estate already prepared? Nobody wants to plan ahead and make as if they are anticipating their own death. But if you have loved ones who you would like to protect in case something unfortunate happens, you should learn about probate claims and actually go about preparing your own last will and testament.
What is a Probate Claim?
First, let’s talk about probate claims. Simply put, a probate is the process of dealing with a deceased person’s property. Let’s say that Mr. X lives in College Station, Texas and he died from a heart attack. If he left behind a wife and a couple of kids, how will his estate be managed? What about any debts that he may have left behind? In case he is very well off, how will his estate and properties be divided? This is where probate claims prove to be useful.
Through it, a step-by-step process will be followed on how the deceased person’s property will be managed according to his wishes. If there was no will and testament left prior to Mr. X’s death, it will be up to the probate court to assign an executor for the estate.
How do Probate Claims Work?
Since the main purpose of a probate is to determine how a deceased person’s assets will be managed, being an executor will involve the following tasks:
– -Determining how much money the deceased owed.
– -Deciding who gets paid and who does not, in case the total value of the assets of the deceased is less than what is actually owed.
– -Implementing estate and property-related decisions based on the last will and testament of the deceased, if one was made prior to the death.
In every state in the US probate laws vary significantly. However, a typical process involves an executor filing a notice, which is typically published in a local newspaper. Once creditors learn that the estate of the deceased has been opened, they need to file a claim with the executor. After that, it is the duty of the executor to ensure that the claim is valid, and when repayment is possible.
It is up to state laws to determine what creditors get repaid with, and in which order. Again, as long as there is enough money to get around – all creditors should be paid from the value of the estate and property of the deceased. In case there is not enough money to get around, some creditors will not get repaid – and it is up to the executor to decide which creditor gets repaid with how much, and which creditors lose out from the process.