Something every executor, executrix, or personal representative needs to do during probate is “file notice to creditors”.
This is the formal act of raising your hand, saying, “Hey, everyone. This person has passed, so if they owed you something, ask for it before we give everything that’s left to taxes, other creditors, and the family.”
This starts a statute of limitations that changes state to state, but is usually 30-120 days.
Think of it like an hourglass. If someone requests they be paid before the sand finishes falling, then the estate must attempt to pay that obligation. If they don’t reach out until after, too bad. That debt is forfeit, and you don’t have to worry about it.
But… if you’re the executor and you don’t file notice to creditors and give all the money away to beneficiaries, a creditor could come out of the woods and demand that the estate pay up.
And if the estate is empty, that obligation falls to the person who managed the estate. A.k.a. You.
Nope. No thank you.
We aren’t going to let that happen.
So let’s figure out how to file notice to creditors.
Fast Facts about Filing Notice to Creditors
- Executors and personal representatives are required to tell creditors that the deceased has passed and the estate is in probate in the form of a public notice.
- The notice is most often filed in the newspaper of the county where the probate claim is being processed. Most claims are required to have both local and national circulation.
- Each state has different requirements for what must be included and how long the notice needs to stay up. These requirements are listed in state statutes.
- At a minimum, the notice includes the name of the deceased, a deadline, and information on how to contact the executor.
- Executors can be held responsible for estate debt (up to the value of the estate) if a creditor wasn’t properly notified.
What Executors Are Responsible For When Filing Notice to Creditors During Probate
Before we get into the weeds, there are two main things executors, personal representatives, or administrators are responsible for:
- Notifying all creditors via a public notice in the county (or next biggest municipality), most often in a local newspaper of general circulation in the city in which the deceased individual resided.
- Sending direct notice to any creditors you are aware of on behalf of the estate. This is usually providing, mailing, or emailing the letter directly to the creditor, but you may be able to just send a link to an online version of the notice if properly documented.
How Filing Notice to Creditors Fits Into the Probate Process
When someone dies, even if an executor is able to skirt or avoid probate entirely, there is at least an informal probate process for dissolving someone’s financial life and estate. This formal ending of a financial life is known as probate, and part of that process is paying off all taxes and debts the estate owed at the time of death.
It depends on state law, but creditors have a limited amount of time to ask for the money they are due after probate is started and a subsequent “notice to creditors” is filed. This, again, is known as the statute of limitations.
If an executor doesn’t think the creditor needs to be paid but the creditor does, the claim will go to the local probate court of the deceased, and the judge will decide if the estate has to pay it out or not.
Where Are Notices to Creditors Filed?
Newspapers have historically been the medium where probate notices to creditors are filed, and this continues to be the case by posting both physical and digital versions of the notice to the newspaper and the newspaper website, respectively.
The majority of states indicate that the general circulation needs to be in the county.
If there is no local county newspaper or newspaper website, then you should go to the next largest city newspaper/website that distributes in the jurisdiction of the decedent’s domicile.
Basically whatever local news source is available in the area is where you must file at a minimum.
Some websites may also fulfill the “national” requirement if your local newspaper does not have online publication, but we recommend this being in addition to a newspaper publication instead of the only option.
That’s because IF you only post to an online platform, the argument could be made that the platform's general circulation is not within that county. You would be better off by hosting it online + filing a county notice
Atticus Advice: Having a URL or digital version of the notice to give to creditors also makes reaching out to individual people and companies easier, since you can just send them the notice digitally instead of mailing it to each potential creditor. Just remember to document!
How to File Notice to Creditors in 6 Steps
Step 1 — Initiate Probate in the Correct County
Assuming you’re not avoiding probate with an affidavit, you should file notice to creditors after you’ve been appointed executor, executrix, or personal representative and received your letters from the probate judge in the probate court or equivalent in the county where the deceased permanently resided (domiciled).
If you are skipping probate, we still recommend filing notice to creditors to avoid being liable for any outstanding estate debts.
Step 2 — Identify as Many Creditors As You Can
As you gather what you need to draft the notice, go ahead and keep a working list of creditors and debts you find along the way. You have a fiduciary duty to treat these creditors as human beings who are owed something (a.k.a. with respect), and you will personally send notice to some of them later on (by mail and/or sending them a link to a page with the notice).
Step 3 — Draft the Notice
You can skip this step if you’re working with a probate lawyer since they will write it for you, but use the template below or look up “notice to creditors [RELEVANT STATE]” to find a published example to work from.
You can also Google “[your state] notice to creditors statute” to find the specific government requirements. It doesn’t have to be pretty — just make sure you include everything the state statute requires you to. If you don’t, you could open yourself up to liability.
Step 4 — Review Writing & Requirements (with or without a lawyer)
After you have your draft, double check you have everything your state asks for. If you’re unsure, it may be worth talking to a probate lawyer to make sure you aren’t missing anything. You can ask a probate clerk for help, but unless they are already helping you file, it’s doubtful they will want to spend time on it.
Once you get the thumbs up, or if you think the statue is easy enough to interpret, you can move on.
Step 5 — Post the Probate Notice in a Local Newspaper and Online
Contact the local newspaper in the same county as the probate court. Cost varies widely depending on the paper, but it’s generally a few hundreds dollars. And remember, this is an estate expense and can be written off later, so make note of it.
Email them and let them know you need to file notice to creditors, and go ahead and include your draft to get a quote.
If that newspaper also circulates online, great. If not, you should host the notice to creditors on a website and/or also publish an additional notice in a newspaper that does.
Step 6 — Proactively Notify as Many Creditors as Possible
Once the notice is live, you can’t sit back and relax quite yet. Go ahead and send the notice to all the creditors that you know of. This can be a copy of the notice sent in an email, a physical letter, or an email with the link assuming you document everything.
After you’ve reached out, check each one you email or contact off of your master list of creditors.
You don’t have to be perfect here, but if a creditor ruffles their feathers and claims you didn’t contact them, showing you made an honest attempt to notify everyone will help your case in the probate court. Just do your best to actually get their attention with the notice.
Sample Probate Notice to Creditors After Death In a Newspaper
Here’s a real example of a public notice to creditors in Tennessee.
Notice to Creditors Transcription Example:
NOTICE TO CREDITORS DOCKET NO.: PR-5223 (As required by section 30-2-306 of the Tennessee Code Annotated) Estate of Betty Jo McDowell, late of Blount County, Tennessee. Notice is hereby given that on May 11, 2022, Letters of Testamentary in respect to the Estate of Jane Doe, deceased, who died on February 6, 2022 were issued to the undersigned by Probate Clerk of Blount County, Tennessee.
All persons, resident and non-resident, having claims, matured or unmatured, against said Estate are required to file the same with the clerk of the above named Court on or before the earlier of the dates prescribed in (1) or (2), otherwise their claims will be forever barred: (1)(a) Four (4) months from the date of the first publication (or posting as the case may be) of this Notice if the creditor received an actual copy of this Notice to Creditors at least sixty (60) days before the date that is four (4) months from the date of first publication or posting; or (B) Sixty (60) days from the date the creditor received an actual copy of the Notice to Creditors if the creditor received the copy of the Notice less than sixty (60) days prior to the date that is four (4) months from the date of the first publication (or posting) as described in (1) (a); or (2) Twelve (12) months from the decedent’s date of death.
This the 11 day of May, 2022. Sylvia McDoel Gingrich Personal Representative By: Jack Doe, Blount County Probate Clerk Maryville, TN 37804 May 25 & June 1, 2022
Probate Notice to Creditors General Template (for newspapers)
Note: You must adjust this according to the state’s statute of where the deceased was domiciled.
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NOTICE TO CREDITORS (as required by [Your state’s statute]). Notice is hereby given that on [DATE], Letters of [Testamentary or Administration] in respect to the Estate of [Deceased Name], who died on [Date of Death] and was domiciled in [City/State] were issued to the undersigned by [Probate Clerk or Court] of [County where you filed].
All persons, resident and non-resident, having claims, matured or unmatured, against said Estate are required to file the same with the clerk of the above named Court on or before the earlier of the dates prescribed below, otherwise their claims will be forever barred.
[List specific language of the state statute’s decrees on announcement and dates].
This the [Current Date]. [Executor Name and Formal Title in Regard to the Estate].
—
Atticus Advice: Because the state statutes determine what exactly need to go in your notice, you have two main options:
- Hire a lawyer
- Do the research on the statute yourself
A lawyer is the surest bet and is probably worth it if you’re managing an estate with a lot of assets, but it’s not a necessity. If you look at the statute and feel comfortable, you’re probably fine. If you feel completely lost, it may be worth consulting with a lawyer to avoid liability.
FAQ About Filing a Probate Notice to Creditors
We work with thousands of executors and personal representatives, so we’ve seen it all. Here are some of the most common questions that come up:
What if there are no creditors, do I still need to file a claim?
Yes, we recommend it, because even if you think an estate doesn’t have any claims, it’s easy to miss one, and the last thing you want is for a creditor to come out years later and have a case because you didn’t file notice.
What happens if an executor, personal representative, or administrator doesn’t file notice to creditors or doesn’t do it correctly?
In short, you open yourself up to being liable for an estate’s debts. If you don’t complete the process correctly, a creditor could say that they are owed money well after you wrap up probate, and if you’ve already distributed all the assets to beneficiaries and/or spent the remaining funds, you could be in for a nightmare of a time trying to pay them off. You can never be liable for more than the estate was worth to begin with… but that can be a lot.
If I skip probate do I have to file notice to creditors?
Similar to the no creditors answer above, yes — we recommend it to cover your bases. You should try to do everything you can to minimize your risk of a surprise creditor coming out and making a claim against the estate.
In What Order are Debts Paid?
If there are more debts than cash in the estate, you must pay off the creditors before giving anything to heirs or beneficiaries, and each state has it's own laws which specify the order in which you must pay out.
For example, in Alaska, this is the order that people pay:
- Secured claims. The highest priority applies only to the secured creditor's right to collect the property (security) and not to a claim for the amount of the debt.
- Probate expenses. Examples include court fees, publication fees, postage, airfare, appraisals, lawyer fees, accountant fees and Personal Representative fees.
- Funeral expenses. Examples include reasonable burial costs, obituary fees and costs of the service.
- Debts and taxes with certain priority under federal law. Past due child support. Examples include unpaid federal income, gift or estate taxes.
- Medical and hospital expenses of last illness. Examples include doctor bills, nursing home and caregiver services and ambulance costs. These must be reasonable and necessary for the last illness of the person who died.
- Debts and taxes with certain priority under state law. Examples include unpaid state property, business or income taxes.
- All other claims. Examples include credit card debt, medical bills before the last illness, unpaid goods or services, judgments and secured loans based on the entire debt.
Google “what order to pay off creditors during probate {applicable-state}” and look up recommendations on .gov sites, ask the probate court, and/or work with a lawyer to pay off debts in the right order.
Do I have to pay all creditors that come forward?
Not necessarily. Watch out for claims that feel inauthentic.
If anything feels off, ask them to prove their legitimacy in the probate court to avoid being scammed. Asking this alone will likely scare away any deceitful actors.
Do obituaries count as filing notice to creditors?
No, unless you were to include extremely specific language, but it’s best to do them separately.
Notice to creditors are usually published in a newspaper and follow a particular legal format — some states have a form to be filled out, others just provide language in the code statutes (laws).
In some states the Clerk of Court (probate clerk) will file it for estates, but in most states the obligation is for the executor/personal rep to file it.
How can I speed up the probate process?
The reality is, navigating probate is incredibly individualized based upon a lot of different factors. Things like:
- Was there a will?
- Is there a will contest?
- Do all of the beneficiaries get along?
- Does everyone live in the same location?
- Is there a surviving spouse?
- Did the deceased individual own real estate?
There is no direct shortcut if you have to go through probate, but the best way to speed up probate is to know that you’re doing all of the right steps, at the right time, with the right forms, and with the right context based on your unique circumstances.
Conclusion
That wraps up our file notice to creditors guide. Has anything interesting happened to you while filing a notice that you can share? Or do you have additional questions?
Either way, let us know by dropping a quick comment below.
