Detailed Answer
When a creditor submits a settlement demand during probate in Alabama, the executor must gather specific documents to review, negotiate, or dispute the claim. Under the Alabama Probate Code, an executor must first confirm authority and then assemble records that show estate assets, liabilities, and prior notices. Below is a checklist of essential documentation:
- Letters Testamentary
A copy of the Letters Testamentary issued by the probate court. This document proves your authority to act on behalf of the estate. - Certified Death Certificate
Obtain multiple certified copies from the county vital records office. Creditors often require an official death certificate to validate the claim. - Estate Inventory and Appraisal
The complete inventory filed with the probate court, including appraisals of real estate, personal property, and financial accounts. - Notice to Creditors
Proof that you published or mailed the “Notice to Creditors,” per Ala. Code § 43-8-187 (link). - Creditor’s Claim Form and Supporting Documents
A copy of the creditor’s demand, including invoices, contracts, bills, or account statements that support the settlement figure. - Estate Account Statements
Recent bank and investment statements that show available assets and cash flow. - Payment and Discharge Records
If you previously paid or settled any portion of the debt, include receipts or canceled checks. - Correspondence Log
Document all communications with the creditor: letters, emails, and notes from phone calls. - Tax Returns
Federal and state income tax returns of the decedent for the last two years and any returns filed on behalf of the estate. - Estate Ledger or Accounting
A running ledger that tracks all incoming and outgoing payments, distributions, and administrative expenses.
Once assembled, review the claim under Ala. Code § 43-8-241 (link). Determine if the creditor’s documentation meets statutory requirements. If it does, consider negotiating a settlement that reflects the estate’s cash flow and priorities. If it does not, prepare a written rejection or request for additional information.
Helpful Hints
- Begin gathering documents early to meet Alabama’s six-month claims deadline.
- Keep originals in a secure location; provide only certified copies to creditors.
- Use a simple numbering system to cross-reference documents.
- Consult the probate court clerk if you need forms or local procedures.
- Maintain clear, dated records of all transactions to prevent disputes.
Disclaimer: This article is for educational purposes and does not constitute legal advice. Consult a qualified attorney to address your specific situation.