Short answer

If you receive a creditor payoff quote for an estate debt in Alaska, start by asking the creditor for a written, itemized payoff statement and the legal basis for each charge. Verify the debt against account records, the decedent’s will/trust and estate inventory, and the probate notice to creditors. If the figure looks wrong, you can dispute it with the creditor in writing, request proof of the claim, and—if the creditor has or files a claim in probate—object to the claim in the probate court and ask for a hearing. The Alaska probate statutes and the probate court’s notice to creditors control timing and procedure; check the probate notice and Alaska Statutes, Title 13, for the specific deadlines and requirements (see https://www.akleg.gov/basis/statutes.asp#13).

Detailed answer — step‑by‑step

1. Know your role and the context

As personal representative (executor/administrator) or an interested heir, you have duties to collect estate assets and to pay valid debts in an order required by law. Before paying, verify each debt. If the estate is in probate, follow the probate court’s notice, schedules, and deadlines for claims. See Alaska Statutes, Title 13 (Estates and Probate) for statutes that govern claims and probate procedure: https://www.akleg.gov/basis/statutes.asp#13.

2. Immediately request a written, itemized payoff statement

• Ask the creditor (or debt collector) in writing for a complete payoff figure showing: principal balance at date of death, daily or monthly interest rate, interest accrued (with dates), late fees, collection charges, attorney fees (and authority for them), payments applied (dates and amounts), and any lien status or security interest.
• Request copies of the underlying contract or account agreement and the most recent account statement before the decedent’s death.
• Send your request by certified mail (return receipt) or another trackable method. Keep copies of all communications.

3. Verify basic accounting items

• Compare the creditor’s numbers to bank statements, account statements, and the decedent’s records to confirm the principal and recent payments.
• Confirm the correct date to stop interest—often interest should accrue to date of death or the date the creditor actually incurred a loss; check the contract and the probate notice.
• Watch for duplicate charges, double-counted interest, or fees prohibited by the contract or law.
• Confirm whether a co‑signed borrower or surviving joint account holder exists—those persons may be primarily liable, not the estate.

4. Check whether the creditor filed a proof of claim and the probate notice

When an estate is opened, the personal representative usually publishes notice to creditors and sends direct notice to known creditors. The probate notice describes the deadline and procedure to present claims. If the creditor has not filed a proof of claim, it may be easier to challenge their figure. If the creditor has filed a claim in the probate court, you can formally object to that claim and request a hearing. See the probate notice and Alaska Statutes Title 13 for claim presentation rules: https://www.akleg.gov/basis/statutes.asp#13.

5. Dispute the claim in writing and request proof

• Send a written dispute to the creditor and to the personal representative (if you are not the PR). Explain which items you dispute and request supporting documentation (copy of contract, ledger, statements, assignment documents if debt was sold).
• Demand that the creditor stop collection activity on the estate until it proves the debt (but understand a creditor may still file a claim in probate or pursue legal remedies against non‑estate obligors).
• Use certified mail and retain proof of delivery.

6. Object in probate court if the creditor files a claim

If the creditor files a proof of claim in probate, you may file a written objection under the probate rules and request a court hearing where the creditor must produce evidence. Objections commonly argue: incorrect principal, incorrect interest, improper fees, lack of documentation, expiration of the statute of limitations, or that the debt is not owed by the estate.

7. Consider alternative dispute options

• Negotiate. Creditors often accept less than the quoted payoff for prompt payment, especially if the estate is small or if full recovery is uncertain.
• Mediation. For contested claims of significant value, ask the court or the creditor to mediate before trial.
• If the creditor is a debt collector, federal law (FDCPA) and Alaska consumer statutes limit certain collection practices — consider asserting consumer protections where appropriate.

8. Be mindful of timing and priorities

Probate procedure sets deadlines for presenting claims and for objecting. Missing deadlines may affect whether the estate must pay the claim. Check the probate notice in the estate file and Title 13 rules (Alaska Statutes) for timelines, and consult the probate court’s forms for local procedure: https://www.akleg.gov/basis/statutes.asp#13.

9. Keep full records

Maintain a clear paper trail of requests, communications, account statements, payments, and court filings. Good records protect the personal representative and make it easier to resolve or litigate disputes.

10. When to get lawyer help

Consult a probate attorney if: the creditor refuses to produce documentation; the amount is large; the claim involves complicated issues (secured vs. unsecured, priority disputes, fraud allegations, potential estate insolvency), or you need help filing objections and presenting evidence in court.

Helpful hints

• Always request the payoff in writing and ask the creditor to certify the date to which interest is calculated.
• Compare the creditor’s ledger to the decedent’s last account statements and bank records to spot misapplied payments or duplicated charges.
• Check whether the creditor sold the debt. If it sold the debt, the buyer must produce assignment paperwork showing chain of title.
• Don’t pay a disputed claim until you verify it—unless the estate has plenty of liquidity and you prefer to avoid litigation. Document why you paid to protect against later personal liability as personal representative.
• If a creditor threatens foreclosure or repossession of estate property, act quickly; secured creditors may have remedies outside probate and may be able to enforce security interests.
• Review the probate notice carefully for claim-presentation deadlines. If you miss a statutory deadline, you may lose leverage or the estate may be bound by the claim.
• Keep communications professional and concise. Clear written records often resolve disputes without court involvement.