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How to handle personal debts during estate administration

On Behalf of | Jun 22, 2022 | Estate Planning

As the executor or personal representative of an estate, you have a lot of responsibility. You also have a little bit of risk. If you make mistakes in your management of estate property, creditors might actually bring a claim against you personally. 

Those handling an estate can protect themselves by carefully following state law and the guidance of the documents left by the deceased. One of the most important responsibilities while handling someone’s estate will involve settling their financial obligations to others. 

You have a duty to use the estate’s resources to pay off creditors before distributing any money or personal property to beneficiaries. Adhering to the Nevada requirements for notifying creditors will help protect you from incurring any personal financial liability. 

What notification is necessary? 

There are two kinds of notice that you will generally have to provide. First, you will have to identify the known creditors with valid claims by reviewing financial records and correspondence. You will have to send them individual written notices about the death and the need for them to make an estate claim for any final balance due. 

There could also be creditors that you will not locate by going through someone’s financial paperwork or mail. You will need to publish a notice of probate proceedings in the local newspaper to alert any unknown creditors about the need to file an estate claim. Doing so starts the countdown to when you can start distributing assets to beneficiaries. 

If you follow the right steps, you won’t have to worry about any personal financial liability for debts left behind when someone dies. Learning the rules that govern estate administration will help you limit your liability during probate proceedings.

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