Detailed Answer
When you serve as an executor of a Connecticut estate, you must safeguard estate assets and ensure proper payment of valid debts. Before paying any creditor claim, you need to confirm that the estate has sufficient liquid assets to cover that claim without jeopardizing other obligations.
1. Inventory and Valuation of Estate Assets
Conn. Gen. Stat. § 45a-341 requires an executor to collect and manage all assets. That means creating a detailed inventory of cash, bank accounts, investments and other property. Accurate valuation helps you know how much money is available for creditor claims.
2. Notice to Creditors
Under Conn. Gen. Stat. § 45a-244, you must publish notice to creditors in a local newspaper and mail notice to known creditors. Creditors then have four months from the date of notice to file a claim against the estate.
3. Reviewing and Approving Claims
Once claims arrive, verify each claim’s validity and priority. Secured claims (like mortgages) and priority expenses (e.g., funeral costs and administration expenses) must be paid first. Unsecured claims follow. If assets are limited, you may need to pay pro rata or dispute claims you believe are invalid. See Conn. Gen. Stat. § 45a-404 for proof, allowance and disallowance of claims.
4. Confirming Available Funds
Before issuing any payment, review the estate’s bank and brokerage statements. Compare total pending obligations against available funds. If paying one creditor would deplete your liquidity and prevent payment of higher-priority debts (e.g., administrative costs, taxes), you must delay or partially pay lower-priority claims. Proper fund confirmation prevents an executor’s personal liability for wrongful distributions.
5. Final Accounting and Court Approval
After paying all allowed claims and distributing assets to beneficiaries, prepare a final account. The probate court reviews your accounting, ensuring that you properly confirmed funds and followed statutory priorities. See Conn. Gen. Stat. § 45a-334 for settlement of accounts.
Helpful Hints
- Keep detailed records of all estate transactions, including dates and amounts of payments.
- Maintain a separate bank account for estate funds to avoid commingling with personal assets.
- Consult the probate court clerk if you have questions about creditor deadlines or priorities.
- When in doubt, request guidance from a probate attorney to minimize the risk of personal liability.
- Use an online checklist to track notice publication, claim deadlines and fund balances.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific situation.