When someone passes away, the personal representative of the decedent’s estate must exercise due diligence to identify any unpaid creditors. In Florida, the probate process is key to settling these debts. We will explain how unpaid bills are handled pursuant to Florida probate law, including what steps are taken and what exceptions may apply.
How to Identify the Decedent’s Creditors
To determine who the decedent owed money to, start by reviewing their financial records, any mail for unpaid bills, and income tax returns. If you have access to their regularly-used email account, accessing it may shed some light on unpaid creditors. If you are unsure where to begin, consulting your probate attorney can be beneficial. Probate attorneys can point you in the right direction in locating all relevant documents and identifying creditors. Identifying ascertainable creditors is a crucial step in the administration of Florida estates. Any identified creditors should be served with the Notice to Creditors. Serving the notice would limit the creditors’ time to file a claim to 30 days from the date of service thereof. If a claim is not filed within this timeframe, it may be barred forever.
Who Is Responsible for Paying Unpaid Probate Bills?
Under Florida probate law, the personal representative is responsible for ascertaining creditors and paying valid claims pursuant to the order of priority set forth in section 733.707, Florida Statutes. Creditors are not entitled to payment until at least 5 months after the date of initial publication of Notice to Creditors. The personal representative must pay all creditors within 1 year from the date of the first publication pursuant to section 733.705, Florida Statutes. If the estate does not have sufficient funds to pay all of the creditor claims, the personal representative shall pay the creditors in the order directed by section 733.707, Florida Statutes.
Florida Probate Taxes and Additional Considerations
While dealing with unpaid bills, it’s important to consider any estate tax liability, which can be overlooked. Furthermore, even if the estate is not large enough to incur a federal estate tax, if the estate has earned any income during its administration, the personal representative may have to file an income tax return.
Guidance Through the Florida Probate Process
The probate process can be complex, especially when dealing with creditor claims. Knowing the laws and regulations governing probate in Florida is important. Our team of probate attorneys are here to guide you through the process and ensure your loved one’s estate is properly managed. Contact us today and check how we can assist in settling unpaid bills efficiently.