Disclaimer: This article is for informational purposes and is not legal advice. Consult a licensed attorney for guidance on your specific situation.
Detailed Answer
When acting as the executor of an estate in Indiana, you must collect, manage, and safeguard the estate’s assets before making distributions. Under Indiana law, an executor (also called a personal representative) must file a full inventory and appraisal of the estate within three months of appointment (Ind. Code §29-1-5-1). This inventory establishes the estate’s total value, including cash, real property, and personal property.
After filing the inventory, creditors may submit claims. You review and determine whether to allow or contest each claim under Ind. Code §29-1-7. Indiana law sets a priority for payment of claims: administrative expenses, funeral and last illness expenses, secured claims, then general unsecured claims (Ind. Code §29-1-7-10).
Before settling any creditor claim, confirm that the estate holds sufficient liquid funds. Liquid assets include bank account balances, cash on hand, and proceeds from the sale of estate property. Reconcile estate bank statements and verify cash availability. Failing to confirm available funds can lead to improper distributions, personal liability, or delays in estate administration.
Helpful Hints
- Open a dedicated estate bank account to track all estate transactions.
- Reconcile bank statements monthly to confirm cash balances.
- Maintain detailed records of every transaction and creditor correspondence.
- Review the statutory priority schedule before issuing any payments.
- Consult a probate attorney for complex assets or disputed creditor claims.