How Does an Estate Collect a Debt Oweed to the Deceased?
Full Question:
Answer:
The answer will depend on the terms of any promissory note involved, but generally, debts become payable to the estate and the debtor will be listed on the schedules submitted to the court as part of the probate process. If the debtor has defaulted in payments, the estate may enforce the lien in the same manner as the deceased.
When a person dies, their assets are distributed in the probate process. If a person dies without a valid will, an administrator is named to handle the distribution of the estate after a petition to probate the estate is filed with the court in the county where the deceased resided. The court will issue letters testamentary of letters of administration, giving the administrator authority to collect the assets and pay the debts of the decedent. The executor will be responsible for sending notices to creditors, collecting the property of the deceased, filing inventories of the estate, and distributing the estate assets in accordance with the will. The complexity will vary according to the circumstances in each case, such as the assets of the estate and potential claims involved.
In Texas, where the value of the entire assets of the estate, not including homestead and exempt property, does not exceed $50,000, a small estate may be administered by a small estate affidavit. After the affidavit has been approved by the court, the affidavit may be used to collect debts owed to the decedent.
The affidavit is filed with the clerk of the court in the county where the deceased resided. It lists certain information required by statutes, such as all of the known assets and liabilities of the estate, the names and addresses of the distributees, and the relevant family history or other facts concerning heirship that show the distributees' rights to receive the money or property of the estate.