The Law Office of My Florida Probate, P.A.
Providing Legal Assistance with Probate throughout Florida.
Estate Debts and Probate in Florida
Creditors and probate. Do I have to pay the bills?
As the economy has slowed, it seems creditors have become increasingly persistent in collecting debts. When a family member passes away, heirs can often feel overwhelmed at the prospect of dealing with unpaid bills.
The first thing to recognize is that unless a family member was a signatory to the debt (actually signed on as an original borrower or guarantor of the debt at the outset) there is no obligation on the part of any family member to pay the decedent's debts.
During probate, creditors have a right to be notified that a borrower has passed away, and in the probate process they commonly are (more on this in a moment) but creditors do not have a right to demand payment from someone not legally obligated, either before or during the probate process.
If the option exists to conduct either a Summary or a Formal probate, one important factor to consider is minimizing the time period in which creditors can file claims. This can be accomplished by publishing a Notice to Creditors which in effect tells the world that 90 days from the date of the notice's publication, all creditors who haven't filed a claim against the estate will be barred forever from doing so. This does not apply to mortgages, secured loans, properly filed liens or creditors who could have been found after a diligent search.
Finally, one little known fact is that two years from the date of death of a decedent, creditors claims against the estate are barred. In other words, these claims 'fall away' and are not enforceable (mortgages, secured loans and perfected liens are exceptions). There are beneficiaries of an estate who, upon review of the amount owed to creditors, have determined that they are going to wait until two years from the decedent's death. In this way many outstanding debts are barred from collection.
The decision to pay creditors involves several considerations, the first and foremost of which is whether there are funds available in the estate to do so. Certain assets, including the decedent's homestead, cars regularly used by the decedent, and up to $10,000 in tangible personal property are exempt from unsecured creditor's claims. If there is little else in the estate, odds are no creditors will end up being paid.
You need a clear understanding of who is owed by the estate before initiating probate and you should discuss the debts with a probate attorney to gain a full understanding of the options available.
For a more detailed discussion of creditors claims in probate see Chapter 733 of the Florida Statutes (here)
For a FREE consultation regarding debts and an estate, call TOLL-FREE 866-465-8046, or you can e-mail your questions here.
As the economy has slowed, it seems creditors have become increasingly persistent in collecting debts. When a family member passes away, heirs can often feel overwhelmed at the prospect of dealing with unpaid bills.
The first thing to recognize is that unless a family member was a signatory to the debt (actually signed on as an original borrower or guarantor of the debt at the outset) there is no obligation on the part of any family member to pay the decedent's debts.
During probate, creditors have a right to be notified that a borrower has passed away, and in the probate process they commonly are (more on this in a moment) but creditors do not have a right to demand payment from someone not legally obligated, either before or during the probate process.
If the option exists to conduct either a Summary or a Formal probate, one important factor to consider is minimizing the time period in which creditors can file claims. This can be accomplished by publishing a Notice to Creditors which in effect tells the world that 90 days from the date of the notice's publication, all creditors who haven't filed a claim against the estate will be barred forever from doing so. This does not apply to mortgages, secured loans, properly filed liens or creditors who could have been found after a diligent search.
Finally, one little known fact is that two years from the date of death of a decedent, creditors claims against the estate are barred. In other words, these claims 'fall away' and are not enforceable (mortgages, secured loans and perfected liens are exceptions). There are beneficiaries of an estate who, upon review of the amount owed to creditors, have determined that they are going to wait until two years from the decedent's death. In this way many outstanding debts are barred from collection.
The decision to pay creditors involves several considerations, the first and foremost of which is whether there are funds available in the estate to do so. Certain assets, including the decedent's homestead, cars regularly used by the decedent, and up to $10,000 in tangible personal property are exempt from unsecured creditor's claims. If there is little else in the estate, odds are no creditors will end up being paid.
You need a clear understanding of who is owed by the estate before initiating probate and you should discuss the debts with a probate attorney to gain a full understanding of the options available.
For a more detailed discussion of creditors claims in probate see Chapter 733 of the Florida Statutes (here)
For a FREE consultation regarding debts and an estate, call TOLL-FREE 866-465-8046, or you can e-mail your questions here.
