Serving as the personal representative of an estate is a very demanding and is often thankless responsibility. People have to accept hours of personal obligations in court and elsewhere to fulfill their duties. They have to talk with beneficiaries and family members, as well as communicate with the probate courts throughout the probate process.
Additionally, personal representatives often end up filing tax returns on behalf of someone who has died and often also end up settling their financial accounts. Managing debts in certain ways can even lead to personal liability for the representative if they do not handle them properly.
Written notice is a basic requirement for most accounts
Receiving full repayment from the assets in someone’s estate is a reasonable expectation for creditors owed money by someone who recently died. Of course, if they want to assert those rights, they need to know when a debtor or borrower dies and what courts will oversee the administration of their estate.
Virginia state law requires that the executor of an estate provide written notice to all known creditors so that they have an opportunity to make a claim in probate court. Notifying creditors is often one of the earlier requirements during the probate process. They have to send written notices to known creditors and also publish notice in local newspapers. If the representative intends to challenge a claim, they will need to notify the creditor in writing about that challenge as well.
Mistakes with creditor notification can be expensive
Typically, the representative of an estate is not responsible for the obligations of the testator that the estate cannot repay. However, they could end up personally liable for debts that the estate could have paid if creditors received the appropriate notice and if the estate distributed resources to beneficiaries before paying off all of the testator’s debt.
It is very easy for someone who has been tasked with estate administration to make mistakes that may have financial consequences. Learning more about the rules that govern estate administration and seeking any necessary professional support will help those who are intending to serve as a personal representative to better fulfill their obligations.