Handling claims against the estate
When someone passes away, they often leave behind debts — credit cards, medical bills, loans, final expenses, and more. Part of the probate process is handling these debts properly. That means allowing creditors to file claims against the estate — and making sure the correct debts are paid in the correct order.
Here’s a simple guide to understanding claims against the estate.
What Is a Claim Against the Estate?
A claim is a formal request from a creditor asking the estate to pay a debt the deceased person owed.
This could be for:
Unpaid medical bills
Credit card balances
Personal loans
Unpaid taxes
Funeral expenses
Business debts
If the creditor’s claim is valid, the personal representative may be required to pay it out of estate assets — before distributions are made to heirs.
How Are Creditors Notified?
After the estate is opened, the personal representative must:
Publish a legal notice in a local newspaper announcing that the estate is open
Send direct notice to any known creditors
The notice informs creditors that they have a limited time to file a claim with the Court.
How Long Do Creditors Have to File a Claim?
Deadlines vary slightly by state, but typically:
Known creditors usually have up to 6-months in Missouri, and up to 4-months in Kansas to file their claim.
Unknown creditors must file within a few months after notice is first published (for example, 6 months from the first publication date in Missouri)
👉 If a creditor misses the deadline, their claim may be barred forever.
What Happens After a Claim Is Filed?
Once a claim is filed:
The personal representative must review the claim to decide whether to approve or deny it
You can:
Approve the claim and pay it
Negotiate with the creditor (sometimes you can settle for less)
Dispute the claim if you believe it’s invalid
If you dispute a claim, the creditor can request a hearing, and the Court will decide whether the claim must be paid.
What Happens If There’s Not Enough Money?
If the estate’s assets are not enough to pay all debts, the estate is considered insolvent.
In that case:
Certain debts get paid first (for example, funeral expenses, court costs, taxes)
Lower-priority debts (like unsecured credit cards) may not get paid at all
The Court follows a strict priority order for paying claims.
Heirs typically receive nothing unless all valid claims are paid first.
🚫 Important Mistakes to Avoid
Paying claims too early: Wait until the creditor claim period expires before paying non-priority debts.
Ignoring claims: Always respond to claims on time, even if you intend to deny them.
Paying heirs first: You cannot distribute assets to heirs until all debts and claims are properly handled.
Paying claims incorrectly can make you personally liable for estate debts.
Managing creditor claims correctly protects the estate — and protects you from lawsuits later. When in doubt, review every claim carefully with your attorney before paying or rejecting it. Handling claims the right way keeps the estate on track for final settlement and closing.
Legal Disclaimer: This information is provided for general educational purposes only and does not constitute legal advice. Please consult an attorney for advice specific to your situation.