How Should an Estate Administrator Evaluate Creditor Claims in Florida?

Under Florida law (Florida Statutes § 733.2121), one of the most important requirements of estate administration is notice to creditors. After receiving notice, creditors may potentially file a claim against the estate. Estate administrators need to know how to navigate creditor claims. Here, our St. Petersburg estate administration attorney provides a guide to navigating creditor claims in Florida.

Step 1: Verify Timeliness and Proper Filing of the Claim

You should start by assessing whether the claim is timely and whether it has been filed properly. Among other things, that means confirming that the creditor filed within the statutory period. Under Section 733.702, most creditors have three months from the first publication of the notice to creditors to submit claims. Known or reasonably ascertainable creditors who receive direct notice must file within 30 days after service. Late claims are typically barred unless extraordinary circumstances apply.

Step 2: Confirm the Creditor’s Legal Standing

A valid claim requires a legally enforceable debt. No legally enforceable debt? That means no viable claim against the estate. It is the job of the estate administrator to determine whether the creditor can prove that a legitimate obligation exists and that it was owed by the decedent personally, not by a business entity or trust. Supporting documentation should be reviewed carefully.

Step 3: Evaluate the Debt and its Priority

Florida law recognizes that some debts carry priority over others. That is a very important consideration. For example, expenses of administration, funeral costs, and certain taxes must be satisfied before general unsecured claims. Given that is a relevant issue, the estate administrator in Florida should categorize each claim by class and confirm available estate assets. It is important to note that secured claims require verification of the collateral value before they can be processed.

Step 4: Assess the Amount and Supporting Evidence

Every claim must include the amount owed. Along with that, the creditor also has a responsibility to provide evidence that is sufficient to support their calculation. Estate administrators in Florida should reconcile amounts against estate records and the decedent’s financial documents. When the amount appears excessive or ambiguous, they may request additional substantiation from the creditor. If there are any problems with the documentation that you receive, that could be a good cause to pay less or to even deny the creditor claim outright.

Step 5: Object or Settle When Appropriate

Finally, under Section 733.705(2), administrators may object to any claim within 30 days after expiration of the filing period. Formal written objections must be served on the creditor. Once objected to, the creditor bears the burden of filing an independent action to enforce the debt.

Contact Our St. Petersburg Estate Administration Lawyer Today

At Fisher & Wilsey, P.A., our St. Petersburg estate administration attorney is standing by, ready to protect your rights. If you have any questions about how to evaluate a claim from a creditor, we are here to help. Contact us today for a fully confidential, no obligation initial consultation. We have an office in St. Petersburg and we handle estate administration throughout the wider region in Florida.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0733/Sections/0733.2121.html