One of the fundamental responsibilities of an estate executor is to pay the legitimate debts of the estate. However, an executor must know which claims he must pay and which he may reject as invalid.

To allow estates to be administered with finality, Ohio law sets a deadline for creditors to submit claims to an estate. With very limited exceptions, creditor claims must be presented within six months after the death of the decedent. If a claim is not presented timely, it is forever barred and the creditor cannot reach the assets within an estate. In fact, the Ohio statutes provide that the executor shall not pay untimely creditor claims.

Creditor claims must be made in writing and may be presented in three ways:

(1) To the executor;

(2) To the executor and to the probate court; and,

(3) to the decedent’s address provided that the executor actually receives the claim.

It is important to note that the claim deadline applies even if an executor has not been appointed during the six-month period. If a decedent has many creditors, it may be advisable to wait six months to open an estate. To preserve a claim, a creditor will have to take the affirmative step of opening the decedent’s estate himself for the sole purpose of presenting the claim.

If an executor knows of a potential claim, he may accelerate the deadline. To do so, the executor must give written notice to the potential creditor that identifies the decedent by name, states the decedent’s date of the death, identifies the executor or administrator by name and mailing address, and informs the potential creditor that any claims must be presented to the executor in writing within thirty days or six months after the date of decedent’s death, whichever is sooner.

Once a creditor properly presents a claim to an estate, the executor must determine if the claim is legitimately owed by the decedent. The executor must either allow or reject the claim in writing within thirty days. If an executor rejects the claim, the creditor must file a formal lawsuit against the estate within two months or the claim is forever barred. A probate court will not allow an estate to close until an executor allows or rejects a properly presented claim.

The review and rejection of creditor claims in an estate is complicated. The way claims are handled can dramatically affect the solvency of an estate and the amount of assets beneficiaries receive. It is important to consult a trusted probate attorney to make sure the estate only pays claims that are legitimate and presented timely. The attorneys at Laribee Law, LLP are here to assist you.

This article is intended to provide general information about the law. It is not intended to give legal advice. Readers are urged to seek advice from an attorney regarding their specific issues and rights

Michael Laribee is a partner in the Medina law firm of Laribee Law, LLP. This article is intended to provide general information about the law. It is not intended to give legal advice. Readers are urged to seek advice from an attorney regarding their specific issues and rights.