Part of the probate process is paying the claims that are filed. Even if a creditor doesn’t file a claim, if the executor or personal representative knows about it, he or she must still pay that liability. The personal representative must know in which order to pay the claims. Georgia law allows for a year’s support for the family (spouse and minor children), and that is always paid first if a petition is filed for year’s support, so that the family can adjust to the decrease in income. Once the family receives its share, then the personal representative pays the creditors in this order:
- Any funeral expenses, even if the decedent’s spouse is surviving. If the estate has enough money, the personal representative can pay burial expenses.
- Probate estate administration expenses.
- The decedent’s most recent reasonable medical bills.
- Any taxes that are owed to Georgia and/or the United States.
- Any judgments against the decedent.
- Secured interests.
- Other liens against the decedent.
- Any other claims.
Judgments, secured interests and other liens are paid in the order of priority of the lien. For example, a first mortgage is paid before a second mortgage.
Creditors and Claims
The personal representative must publish a notice to all creditors. The representative is also responsible for notifying those creditors he or she knows of as to the opening of the decedent’s probate. Creditors have three months from the date of publication to file a claim against the estate.
If a creditor does not file a claim, it may not be able to collect money due from the decedent. However, if all other creditors who filed claims have been paid, and there is money left over, the personal representative is responsible for paying known creditors that did not file claims.
Because estates can be complicated, especially when the decedent has several assets and liabilities, you should schedule an appointment with the team at Grissom Law, LLC to help you file probate, especially if you have been named as a personal representative.
Disclaimer
This Blog/Web Site is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site you understand that there is no attorney client relationship between you and Grissom Law, LLC.