Detailed answer — What you must do under Idaho law

When someone dies, the personal representative (PR) must identify creditors and third-party payers, allow claims, pay valid claims, and reflect every step in the estate’s filings and accounting. Idaho’s probate statutes and court procedures give the PR duties to notify creditors, file inventories and accountings, and obtain approval for distributions. For the official statutory framework, see Idaho Code Title 15 (Probate and Trust Code): https://legislature.idaho.gov/statutesrules/idstat/Title15/.

1. Identify third-party claimants and payments

Third-party claims and payments commonly include:

• Medical providers seeking payment for services provided before death.
• Health insurers or auto insurers that paid a bill and assert subrogation or reimbursement rights.
• Private creditors, secured creditors, and lienholders (tax authorities, mortgage lenders).
• Vendors or contractors with outstanding invoices.

The PR should review the decedent’s mail, bank statements, credit card statements, and insurance records to compile a list of likely claimants.

2. Give required notice to creditors and preserve claim deadlines

Idaho law requires that creditors be given notice so they can file claims against the estate. The PR should follow the Idaho statutes and local court rules for notice and deadlines. See Idaho Code Title 15 for the governing probate provisions: https://legislature.idaho.gov/statutesrules/idstat/Title15/.

Typical steps:

• File the estate’s opening papers with the probate court and obtain an appointment as PR.
• Publish a notice to creditors if required by statute or court rule and mail direct notices to known creditors and insurers.
• Track the statutory deadlines for filing claims and for the PR to object or pay.

3. Require written proof of claim and supporting documents

Do not rely on verbal statements. Require claimants (including insurers asserting subrogation) to submit written proof: invoices, contracts, explanation of benefits (EOBs), insurance payment records, and any lien documents. Keep digital and hard copies in your estate file, and attach them when you file your accounting with the court.

4. Accept, reject, or negotiate claims — and record the decision

For each claim:

1. Assess whether the claim is valid, timely, and enforceable against the estate’s assets.
2. If valid, either pay it or seek court approval for compromise/payment terms. If you pay, obtain a signed release or receipt from the creditor that states the claim is satisfied.
3. If you dispute a claim, file a written objection in the probate file and follow the court’s procedure for resolution.

5. Record payments and attachments in court accountings and inventory

Idaho requires PRs to file inventories, appraisals, and accountings with the court. When you pay a claim or accept third‑party payment (for example, when an insurer pays a medical bill), you must:

• List the claim and the payment in the estate inventory and the periodic accounting.
• Attach supporting documents: the creditor’s claim, invoice, proof of payment, and any release of lien or subrogation waiver.
• Show whether the payment reduced the estate’s assets or was paid by a third party (insurer), and identify any offsetting subrogation claim the insurer asserts.

Keeping an organized, dated record makes it easier to obtain court approval for distributions and to protect the PR from later surcharge claims.

6. Handle insurance payments and subrogation carefully

If an insurer pays medical bills or other expenses, the insurer often has subrogation rights (a right to reimbursement from the estate or from proceeds recovered in a lawsuit). To protect the estate:

• Get the insurer’s written statement of payment and any asserted subrogation or lien amount.
• Negotiate reductions where appropriate and get written releases in return for payment.
• Record the insurer’s claim and any release in the court accounting so the court and beneficiaries see the transaction.

7. Obtain court approval for distributions and compromises when required

Some settlements, compromises, or large creditor payments require court approval. When in doubt, file a petition asking the court to approve a settlement or a proposed distribution that depends on paying third‑party claims. The court approval becomes part of the public record and reduces later disputes.

8. Close the estate with full documentation

The final accounting should: list all claims presented, identify which were paid or disputed, show supporting receipts/releases, and detail distributions to heirs and creditors. File a proposed order and obtain the court’s allowance and discharge when the estate is ready to close.

Key statutory resources

Idaho’s probate and trust laws appear in Idaho Code Title 15. For the core requirements on inventories, accountings, and creditor claims consult Title 15: https://legislature.idaho.gov/statutesrules/idstat/Title15/. For local practice and forms, check your county probate court’s website or the Idaho courts site for probate forms.

Practical checklist — Step-by-step for accurate recording

1. Open the estate file and document your appointment as personal representative (court order and letters).
2. Gather decedent records: mail, bank statements, insurance policies, health care providers, and loans.
3. Give required creditor notice: publish and mail as required by Idaho probate rules and statutes (see Title 15: https://legislature.idaho.gov/statutesrules/idstat/Title15/).
4. Log every incoming claim with date received and source.
5. Ask each claimant for a written, itemized claim and attach supporting docs to the estate file.
6. Review claims for priority (taxes, secured claims) and timeliness; consult statute where needed.
7. Seek court approval for disputed claims, large payments, and compromises when required.
8. When you pay, obtain signed releases and receipts, and file them with your accounting and in the probate record.
9. Include all claims and payments in periodic accountings and the final accounting.
10. Keep copies of every document for at least the time required by statute or court rule; get a discharge from the court when the estate closes.

Common problems and solutions

• Late creditor claims: Keep strict deadlines. If a creditor appears late, document delivery of prior notices and consult the court—late claims may be barred in part by statute or require court permission.
• Insurance subrogation disputes: Ask for a written explanation of the insurer’s legal basis and any statutory lien. Consider negotiating for a reduced payout in exchange for a release.
• Unclear receipts: Never pay a claim without a clear written release for the specific amount paid. Vague releases lead to later disputes.
• Beneficiary objections: Serve beneficiaries with accountings and proposed distributions. If they object, the court will schedule a hearing—having clear records speeds resolution.

Short hypothetical example

Hypothetical: Jane Doe died leaving a $10,000 medical bill. Her health insurer paid $7,000 and asserts a $7,000 subrogation claim against the estate. As PR, you:

1. Obtain the insurer’s payment records and subrogation demand in writing.
2. Include the insurer’s claim on the estate claims log and give notice to beneficiaries.
3. Negotiate with the insurer for a reduced settlement (for example, $4,000) and obtain a signed release stating the insurer has no further claim against the estate after payment.
4. Pay the settled amount from estate funds only after court approval if required and file the release and proof of payment with the final accounting.
5. Show the transaction in the estate accounting so beneficiaries and the court see the reduction and release.

Helpful Hints

• Keep a running, dated claims log (who, amount claimed, date received, documents attached, action taken).
• Always get a written release or satisfaction when you pay a claim or when a third party pays an estate obligation.
• Keep originals of receipts and releases; upload scanned copies to the court file where allowed.
• When in doubt about a large or disputed claim, get court approval before paying to avoid personal liability as PR.
• Consult Idaho Code Title 15 for governing statutory duties: https://legislature.idaho.gov/statutesrules/idstat/Title15/.
• Contact the probate clerk in the county where the estate is filed to get local filing requirements and available forms.