Disclaimer: This article provides general information and is not legal advice. Always consult a licensed attorney in Arkansas for guidance on your specific situation.
Detailed Answer
After a person’s death in Arkansas, the personal representative (often called the executor or administrator) must notify creditors and handle claims under the Arkansas Probate Code. Key steps include:
1. Appointment of Personal Representative
File a petition in the probate court of the county where the decedent lived. Once approved, the court issues Letters Testamentary or Letters of Administration, empowering the personal representative to act.
2. Inventory and Estate Valuation
Within 90 days of appointment, prepare and file an inventory of the decedent’s assets and debts with the probate court. This gives creditors a clear picture of available funds.
3. Notice to Known Creditors
Within three months of appointment, send written notice by certified mail to all known creditors. This deadline is critical: creditors who do not receive timely notice may lose the right to file a claim under Arkansas law (see Ark. Code Ann. § 28-41-201).
4. Publication for Unknown Creditors
Publish a notice to unknown or unlocated creditors once a week for two consecutive weeks in a newspaper of general circulation in the county where the estate is probated. Publication must occur within 60 days of appointment to trigger the statute of limitations (see Ark. Code Ann. § 28-41-202).
5. Claim Filing Deadlines
Creditors have three months after receipt of notice or six months after publication (whichever is later) to file claims against the estate (Ark. Code Ann. § 28-41-301).
6. Review and Allow or Reject Claims
Evaluate each claim for validity. You may allow, partially allow, or reject a claim in full. Provide written notice to the claimant of acceptance or rejection. A claimant can petition the probate court to resolve disputed claims.
7. Payment of Valid Claims
Use estate assets to pay approved claims in priority order: administrative expenses first, funeral expenses, taxes, secured claims, and then unsecured claims. Maintain detailed records of all distributions.
8. Final Accounting and Distribution
After all claims have been resolved and debts paid, file a final accounting with the court. Once the court approves, distribute the remaining assets to beneficiaries as outlined in the will or under Arkansas’s intestacy rules.
Helpful Hints
- Act promptly: Missing deadlines can bar creditor claims permanently.
- Keep organized records: Track notices sent, publications run, and claims received.
- Use certified mail: Ensure proof of delivery to known creditors.
- Maintain transparency: Communicate with beneficiaries and creditors to reduce disputes.
- Consider professional help: A probate attorney can streamline complex matters and court filings.