Detailed Answer
Under Idaho law, an executor (or “personal representative”) must follow the Idaho Uniform Probate Code (UPC) when settling an estate. One critical step is confirming the estate’s available funds before paying any creditor claim. Idaho Code § 15-3-801 et seq. outlines deadlines and proof requirements for creditor claims, while § 15-3-802 governs how and when to pay allowed claims. Attempting to pay a creditor without sufficient liquid assets can expose you to personal liability and lead to challenges in the probate process.
Start by reviewing all estate bank and brokerage statements. File a complete inventory with the court within three months as required by Idaho Code § 15-3-515. Classify assets as liquid (cash, bank accounts) or non-liquid (real estate, investments). If funds fall short, you may need to liquidate non-cash assets or seek court approval to defer or compromise a claim under Idaho Code § 15-3-707.
Idaho law prioritizes certain expenses and claims. You must first cover administration costs and funeral expenses, then taxes, and finally other creditors in order of priority. Confirm the estate can meet these obligations before making any payments. If in doubt, seek court guidance through a petition.
Helpful Hints
- File your initial inventory and appraisal within three months (Idaho Code § 15-3-515).
- Maintain a separate estate bank account to track incoming and outgoing funds.
- Keep an executor’s ledger recording each disbursement and deposit.
- Review the probate court’s claims register before approving any creditor claim.
- Consider liquidating non-cash assets early to ensure you have sufficient funds.
- Obtain court approval to defer, compromise, or reject questionable claims.
- Consult an estate attorney before distributing assets to avoid personal liability.
Disclaimer: This article is for informational purposes and does not constitute legal advice. Always consult a licensed attorney about your specific situation.