How Should Families Assess Debt During Probate?

During probate in North Palm Beach, families may have to address numerous concerns. One of the most pressing concerns for families is the assessment of debts left behind by the decedent. In many cases, debt proves to be far more complex than any assets left behind in an estate. These debts may be even more complex if your loved one failed to write a Will before their passing. How should you approach debt assessment during probate? Can an experienced probate lawyer help?

Why Is Debt Assessment Important? 

Debt assessment is important during probate for several reasons. First, these debts must be resolved before beneficiaries can inherit any assets from the estate. Beneficiaries only inherit the remaining assets after debts have been resolved. Debt assessment is also important because it is an inherently complex process. In many cases, debts are more challenging to identify than assets.

What Happens During Debt Assessment? 

During debt assessment, “personal representatives” attempt to assess the nature of debts and the relevant creditors. Sometimes, the exact amount of these liabilities is not clear. Sometimes, tracking down creditors proves to be time-consuming and difficult.

However, this is not an optional process during probate. The personal representative must identify and notify all creditors who have an interest in the estate. Failure to notify creditors during probate could lead to various legal issues, including lawsuits and delays.

Once the creditors receive proper legal notification of the death of the debtor, they only have a certain amount of time to file claims to recover the funds they are owed. If they fail to act within this time window, they may lose the right to receive the outstanding debts.

A personal representative might also attempt to dispute some of these outstanding debts. If the debts seem unfair or excessive, this strategy could reduce liabilities and increase inherited assets for the beneficiaries.

Who Is Responsible for Debt Assessment? 

Debt assessment is one of the many responsibilities of the personal representative (also known in many other states as an “executor”). If the decedent left a Will, they should have nominated a personal representative. If the decedent failed to write a Will, the court may appoint a personal representative (usually a relative of the decedent).

With all that said, a personal representative does not need to shoulder this burden alone. They can get help from an experienced probate lawyer, and these legal professionals can guide the personal representative through all the various steps of debt assessment. This is the most common way for personal representatives to handle debt assessment during probate.

Can a Probate Lawyer in North Palm Beach Help With Debt Assessment? 

A probate lawyer in North Palm Beach will be able to help with debt assessment. If you believe that your loved one may have accumulated debt before passing away, you will need to carefully assess these liabilities before moving forward with the probate process. Legal professionals at Kitroser Lewis & Mighdoll are able to assist families encountering this issue. Schedule a consultation today to get started with an action plan.

Sources:

15thcircuit.com/services/probate-division

mypalmbeachclerk.com/about-us/frequently-asked-questions-faq/probate-of-estates-faq