Detailed Answer — How to make sure third‑party claims and payments are accurately recorded in a Delaware probate filing

This FAQ-style guide explains practical steps a personal representative (executor or administrator) should take to make sure third‑party claims and any payments made to or by the estate get recorded accurately in the probate record under Delaware law. It uses simple hypotheticals to show how to document claims, preserve evidence, and prepare an estate accounting the court can approve.

How probate law in Delaware frames creditor claims and estate accounting

Delaware probate and estate procedures are governed by statutes and county registers of wills and courts. See Delaware Code, Title 12 for statutory rules affecting decedents’ estates: https://delcode.delaware.gov/title12/. For practical filing steps and local forms, consult the Delaware Courts and the Register of Wills offices: https://courts.delaware.gov/ and https://courts.delaware.gov/registerofwills/.

Core principle

Every claim and payment that affects estate assets should be (1) verified in writing, (2) entered into a formal estate ledger or accounting with supporting documentation, and (3) reflected in the periodic or final accounting filed with the probate court or register of wills. Do not rely on informal or verbal acknowledgements: keep records the court and beneficiaries will accept.

Step-by-step checklist (practical steps)

Centralize estate financial activity. Open a dedicated estate bank account for the decedent’s assets. Deposit receipts and pay obligations only out of that account. This creates a clear bank-transaction trail.
Require written claims and invoices from third parties. When a vendor, contractor, creditor, or third party says the estate owes money, ask for a written claim that shows the basis (contract, invoice, timesheets), a contact, the amount claimed, and supporting documents (receipts, proof of delivery, lien waivers).
Record every incoming and outgoing transaction immediately. Maintain an estate ledger or accounting spreadsheet. For each line item include: date, payer/payee, purpose, amount, method (check, ACH), bank reference, and link to supporting docs (invoice, contract, receipt).
Attach proof of payment to the ledger. When you pay a claim, scan and attach the canceled check, bank statement showing the disbursement, a receipt stamped by the payee, or a signed release/waiver from the claimant. If a third party pays the estate (e.g., insurance settlement), keep the deposit slip and correspondence describing why the payment was made.
Serve creditors and publish notices when required. Follow Delaware’s notice-to-creditors procedures and local Register of Wills guidance so claimants have a chance to present claims. See Delaware Code, Title 12: https://delcode.delaware.gov/title12/. Proper notice limits late surprises and helps establish which claims are timely and valid.
File creditor claims in the probate file when required. If the court or register of wills requires formal filing of claims, file the creditor’s petition/claim or place a copy of the claim in the estate court file. Stamp or note the filing date. Keep a copy in your accounting with the court filing reference.
Document contested claims. If you dispute a claim, record the dispute in writing (letter or formal objection), include the reason, and preserve all communications. If you resolve the claim by settlement, keep the settlement agreement and an executed release from the claimant.
Obtain releases for payments that reduce beneficiaries’ shares. When a claimant accepts payment in full, obtain a signed release or satisfaction document. Attach it to the accounting so the court can see the claim is resolved.
Include all items in the inventory and accounting. Prepare inventories and accountings that list assets, debts presented, payments made, and remaining cash. Label entries so the court and beneficiaries can follow: e.g., “Contractor Claim — Invoice #123 — $5,000 — Paid 6/15/2025 — Check #1023 — Release attached.”
Reconcile bank statements and check images against your ledger. Monthly reconciliation shows the estate funds match the accounting. Keep reconciliations in the estate file as proof the ledger reflects actual bank activity.
Seek court approval for large or unusual claims/payments. If a payment is sizable or a claim is potentially objectionable, file a petition for instructions or for allowance of the claim so the probate court can approve the distribution and protect the representative from later personal liability.
Provide full disclosure to beneficiaries. Furnish beneficiaries with copies of the inventory, claims list, and interim accountings so they can spot errors or omissions early. Prompt transparency reduces disputes later.
Keep tax and insurance documentation. For third‑party payments related to insurance claims or tax refunds, keep the policy numbers, claim numbers, IRS notices, and correspondence so you can explain the deposit source and tax treatment in the final accounting.
Close out with a final accounting and court order. When estate administration concludes, file the final accounting that shows every claim presented and paid (or rejected). Attach supporting documents and obtain the court’s order approving the accounting and authorizing distribution. That order provides finality and protects the representative.

Example (hypothetical)

Hypothetical: The decedent hired a contractor to repair the roof before death. The contractor says the estate owes $8,000 and produces Invoice #450 with a signed change order. The executor should:

Ask the contractor for the written invoice, contract, and evidence the work was performed (photos, signed work acceptance).
Enter the claim into the estate ledger as “Contractor Claim — Invoice #450 — $8,000” and note the date received.
Confirm whether the invoice is a valid estate liability (check the contract date and whether the work benefitted the decedent before death).
If valid, pay from the estate account and attach the canceled check, bank statement line, and a contractor-signed receipt; mark the ledger entry paid with references to the attached documents.
If disputed, send a written objection explaining the disagreement and either negotiate a settlement with a signed release or petition the court for allowance.
Include the invoice, payment proof, or settlement and release in the final accounting filed with the probate court or register of wills.

Common documentation to keep for each third‑party claim/payment

Original invoice, contract, or written demand.
Proof the goods or services were provided (delivery receipts, photos, acceptance forms).
Correspondence with the claimant (emails, letters, text logs).
Proof of payment (canceled checks, electronic transfer records, receipts).
Signed release or satisfaction of claim when paid.
Bank statements and reconciliations showing the deposit or disbursement.
Any court filings or orders related to the claim.

When to consult an attorney

Consult a Delaware probate attorney if you face:

Large disputed claims or potential creditor lawsuits against the estate.
Claims that might reduce beneficiary distributions significantly.
Complex transactions (real property, business interests, tax controversies).
Unclear statutory deadlines or notice requirements that could affect estate liability.

Helpful Hints

Use a consistent naming convention in your ledger (date, type, claimant, invoice number) so you can sort and produce records quickly.
Scan and store documents in secure cloud storage with backups; courts accept digital copies if originals are preserved.
Keep a separate folder for disputed claims and a running memo of steps taken to resolve each dispute.
When in doubt, get a signed release from a claimant before distributing estate funds tied to that claim.
File motions or petitions for instruction with the court before paying questionable claims; court approval reduces personal liability for the representative.
Track who examined or approved each payment — include initials or sign-off lines on a voucher form.

Resources

Delaware Code, Title 12 (Decedents’ estates and related statutes): https://delcode.delaware.gov/title12/
Delaware Courts and Register of Wills (local filing procedures and contacts): https://courts.delaware.gov/ and https://courts.delaware.gov/registerofwills/

Disclaimer: This information is educational only and does not constitute legal advice. I am not a lawyer. For advice about a specific estate matter in Delaware, consult a licensed Delaware probate attorney.