Detailed Answer — How late creditor claims are handled in Hawaii probate
When someone dies, the personal representative (executor) must notify creditors so the estate can pay valid debts before distributing assets. Under Hawaii probate law (HRS Chapter 560), creditors generally must present claims within the notice period set by the court and statute. If a creditor files a claim after the 90-day notice period, the claim is usually barred — but there are important exceptions and procedures the court can use to consider late claims.
Key legal reference: Hawaii Revised Statutes, Chapter 560 (Probate and Trust Administration). See the chapter for the statutes governing presentation and allowance of claims: https://www.capitol.hawaii.gov/hrscurrent/Vol12_Ch0501-0588/HRS0560/.
How the 90‑day notice works (basic outline)
- The personal representative must publish notice to creditors and send direct notice to known creditors. The statute and court order set the required notice content and timing.
- Known creditors who receive written (personal) notice typically have 90 days from the date they receive that notice to present their claims.
- Creditors who only receive constructive notice by publication usually have the period specified in the published notice (commonly 90 days from the date of first publication) to file claims.
What happens if a creditor files after the 90‑day period?
Simple answer: the claim is presumptively barred, but a late claim may be considered and allowed by the probate court in limited situations. Typical outcomes are:
- Claim disallowed (most common). The personal representative or beneficiaries can object and ask the court to disallow the late claim. If the court finds the statutory time limits were properly given and no valid excuse exists, the claim will be barred and the estate will not pay it.
- Court allows the late claim for good cause. The court has discretion where the creditor shows a legally recognized reason for delay (examples below). The court may allow the claim in whole or in part, and decide how and when it will be paid from estate assets.
- Claim asserted outside probate or against non‑probate property. Some creditor remedies do not rely on probate claims (for example, a secured creditor enforcing a mortgage or deed of trust against non‑probate real property). Those rights may remain even if a probate claim is time‑barred.
Common exceptions and reasons a court may permit a late claim
Hawaii courts may permit late claims in circumstances such as:
- The creditor did not receive actual (personal) notice and filed within a reasonable time after learning of the decedent’s death.
- The personal representative knew of the debt and either acknowledged or accepted the claim, or the estate conduct led the creditor to reasonably rely on settlement discussions.
- The creditor was prevented from timely filing by circumstances beyond the creditor’s control (fraud, mistake, excusable neglect, or illness). The creditor must provide evidence supporting the excuse.
- Statutory exceptions (for example, certain governmental claims or tax claims may have different rules).
Procedure a late‑filing creditor should follow
- File the claim with the probate court as soon as possible and serve the personal representative and interested persons.
- Along with the claim, file a written motion or petition explaining why the claim is late and include evidence: proof of when and how the creditor learned of the death, communications with the personal representative, medical or other records showing incapacity, or proof of lack of notice.
- Ask the court for allowance of the claim and request an evidentiary hearing if needed. The creditor must persuade the court to exercise discretion in favor of allowing the late claim.
Procedure for personal representatives and beneficiaries
- Object to the claim promptly if you believe the creditor had proper notice and the claim is time‑barred. File a written objection and ask the court to disallow the claim.
- Be prepared to show the court proof of published and mailed notice (copies of the publication and certified mail receipts or proof of service) and that estate administration followed statutory requirements.
- If the court allows a late claim, the personal representative should ask for clarification on how the allowed claim ranks among other claims and whether any interim distributions must be adjusted.
Practical examples (hypotheticals)
Hypothetical 1: A small medical provider did not receive the published notice and learned of the decedent’s death six months later. The provider files a claim immediately and shows it never received personal notice. The court may allow the claim if it finds the provider filed within a reasonable time after learning of the death.
Hypothetical 2: A creditor received written notice but missed the 90‑day deadline because the creditor’s office was closed for months and the mail was not checked. If the creditor cannot show excusable neglect or other compelling reason, the court may still bar the claim.
Priority and payment if a late claim is allowed
If a late claim is allowed, it will be paid according to the statutory priority rules for estate claims (administrative expenses, funeral expenses, taxes, secured claims, unsecured claims, etc.). See HRS Chapter 560 for how claims and distributions are prioritized and administered: https://www.capitol.hawaii.gov/hrscurrent/Vol12_Ch0501-0588/HRS0560/.
Helpful Hints
- Act quickly. If you learn of a decedent’s death and believe you have a claim, file immediately and explain any delay.
- Collect proof. Save copies of mailed notices, publication affidavits, delivery receipts, emails, and any records proving when you learned of the death and why you delayed filing.
- Communicate with the personal representative. Sometimes claims can be resolved by negotiation without court action.
- Check whether the debt is secured. Secured creditors may have remedies separate from probate (foreclosure, repossession) that survive probate deadlines.
- Confirm deadlines. Different types of claims (government tax claims, Medicare, etc.) may have different rules and time limits.
- Consider legal help. Probate rules are technical. A probate attorney can advise whether you have grounds to ask the court to permit a late claim or whether the estate properly barred the claim.
- Use court resources. Hawaii State Judiciary has probate self‑help information that explains local practice and forms: https://www.courts.state.hi.us/self-help/.
Disclaimer: This article explains general principles of Hawaii probate practice but is not legal advice. For advice on a specific situation, consult a licensed Hawaii attorney.