You may view it as an injustice if your loved one did the favor of loaning their money and assets out, but did not see the return on it during their lifetime. What’s worse is if their beneficiaries get jipped from getting the full amount of their promised inheritances because of these outstanding debts. Well, if you were named the executor of your loved one’s estate, now is the time to step up and take action. With that being said, please read on to discover the standard procedure if money is still owed to the deceased and how a seasoned Broward County estate administration lawyer at The Probate Lawyers can work to straighten this all out.
What is the protocol if money is still owed to the deceased?
Well, you must understand that once the grantor of the Last Will and Testament document that named you an executor has passed away, their estate becomes the creditor of their outstanding debts. With that in mind, it is your responsibility to follow this typical protocol:
- You must identify all outstanding debts now owed to the grantor’s estate (i.e., through financial records)
- You must formally notify all debtors about the grantor’s death and instruct them on where to send future payments.
- You must first use these payments to cover the outstanding debts that the grantor still owes to other creditors.
- You must use the remaining balance of these payments and other money and assets to distribute to the grantor’s beneficiaries.
What happens if an executor cannot acquire these payments?
Unfortunately, debtors may take advantage of the grantor’s death and attempt to evade paying the remaining balance of their debt obligations. As the executor, you cannot let this behavior slide, as to reiterate, this may directly hurt the beneficiaries set to receive inheritances.
Instead, you must exercise your right to pursue legal action on behalf of the new creditor, the grantor’s estate. With the help of a lawyer, you may send a demand letter to the respective debtors. If this results in no response or action, you may proceed with filing a lawsuit.
Unfortunately, by taking this action, you may incur considerable legal fees. You may have to use funds from the grantor’s estate to cover these expenses, hence cutting into the named beneficiaries’ intended inheritances. So before making this drastic decision, you must ensure that it is in the best interests of the beneficiaries and the estate as a whole.
If you need help preparing for this upcoming legal proceeding, turn to a competent Broward County estate administration lawyer. We at The Probate Lawyers have gone through this countless times before, and we are ready to go through it again to support you.
