I am getting good feedback from my lecture notes so here are some more. This is also from my 2008 probate lecture to attorneys held at the Sheraton in downtown Sacramento. It was a lecture to a room full of people interested in the California probate process. This section is about creditors. There are ways we can use probate to reduce creditor claims against the decedent’s estate. Using these techniques properly can put more money in YOUR pocket if you are a beneficiary. If creditors are not handled property in a probate you could have PERSONAL liability after the probate ends. Make sure you hire the best probate attorney you can find.
Please contact me with questions about creditor claims or any other facet of California wills, trusts, probate, and estate planning. Also, you can visit our main probate website atwww.californiaprobate.info for more information.
I.ADMINISTERING THE ESTATE EFFECTIVELY
10:35 – 11:20 John B. Palley
i. The name of the creditor;
ii. The total amount of the claim;
iii. The date of issuance of Letters;
iv. The date of the decedent’s death;
v. The estimated value of the decedent’s estate;
vi. The amount allowed or rejected by the PR;
vii. Whether the PR is authorized to act under IAEA;
viii. Statement that the creditor has three months in which to act on a rejected claim.
The Judicial Council form for allowing or rejecting a claim is enclosed as Exhibit JBP-6.
PRACTICE POINTER: I have had a probate attorney tell me that they reject EVERY single claim that is filed no matter what. Since very few creditors will take action against a rejected claim this type of action does have the possibility of saving the estate money. In this writer’s opinion that would be an ethical decision you will need to discuss with your client.