Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer: Managing Estate Expenses and Ongoing Bills in Idaho Probate
1. Obtain Authority to Act
Before paying any bills, the personal representative (executor or administrator) must get formal court authority—called Letters of Administration or Letters Testamentary—under Idaho Code §15-3-301. This empowers you to handle estate assets and pay expenses.
2. Open an Estate Bank Account
Deposit all estate funds into a dedicated estate account. This ensures transparency and separates your personal funds from estate assets.
3. Maintain an Inventory
Prepare and file an inventory of estate property within 90 days of appointment. Include all cash, investments, real estate, and personal property you will use to cover expenses. See Idaho Code §15-3-206.
4. Prioritize Expenses and Bills
Under Idaho Code §15-3-706, the estate must cover:
- Funeral and burial costs
- Property taxes, mortgage payments, and insurance premiums
- Necessary maintenance, repairs, and utilities
- Ongoing household bills (water, electricity, phone)
- Small debts such as medical bills
Pay these from the estate account in the order required by law.
5. Notify Creditors and Pay Claims
Publish a notice to creditors in a local newspaper. Creditors then have four months to present claims. See Idaho Code §15-3-801. Review, approve, and pay valid claims from the estate account.
6. Seek Court Approval for Extraordinary Expenses
For large or contested bills—such as major repairs—file a petition with the court for authority to pay. Attach detailed estimates and explanations. The judge will approve payment if it’s reasonable and necessary for estate preservation.
7. Track Expenses and Provide Accounting
Maintain detailed records of every payment from the estate account. Idaho Code §15-3-704 requires the personal representative to file a final accounting before distributing assets. Thorough documentation demonstrates to the court and beneficiaries how funds were managed.
Helpful Hints
- Consult a probate attorney or accountant to ensure you follow Idaho law.
- Organize all receipts, invoices, and bank statements in one secure file.
- Communicate regularly with beneficiaries to manage expectations and avoid disputes.
- Monitor estate bond requirements; request an increase if estate assets grow significantly.
- Stay mindful of deadlines for creditor notices, tax filings, and court reports to avoid penalties.