I have seen this question very often lately: When do I need to present my creditor’s claim to the personal representative in a probate administration? The answer, like all things law-related, is that it depends!
For estates going through probate, creditors generally must submit their claims within either 120 days after the date the first letters are issued to a personal representative or 60 days after receiving Notice of Administration to Creditors (DE-157) under Probate Code § 9100.
As a personal representative you want to make sure you give Notice of Administration to Creditors as soon as possible within 120 days from the date letters are first issued, preferably early on in the process. If for some reason a creditor cannot be discovered until after the first 120 days after letters are issued, personal representatives have 30 days to give a creditor a Notice of Administration to Creditors.
In many cases, if no notice is given to a creditor, a creditor may file a claim at any time within one year of decedent’s death per the statute of limitations in Code of Civil Procedure § 366.2.
The bottom line is that personal representatives need to give notice to creditors as soon as it is practical to ensure legitimate creditors are paid from the estate and to avoid any charge of wrongdoing and liability. If you are a creditor and receive a Notice of Administration to Creditors, you should act quickly, as the Court may bar any untimely claims. Probate matters can get complicated quickly, so it is best to speak with a probate counsel immediately about handling your creditor’s claim issues.
