Detailed Answer: Notifying Creditors & Handling Claims in Maine
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a qualified attorney regarding estate administration in Maine.
Step 1: Appointment of a Personal Representative
After a person’s death, the probate court appoints a personal representative (PR) to manage the estate. The PR has authority to notify creditors and settle valid claims. See 18-A M.R.S. § 3-201.
Step 2: Inventory Assets and Liabilities
The PR compiles a list of the decedent’s assets and known debts. An accurate inventory helps determine which creditors to notify and the estate’s ability to pay claims.
Step 3: Notify Known Creditors by Mail
Within 30 days of appointment, the PR must mail notice to each known or reasonably ascertainable creditor. This formal notice explains how and where to file a claim against the estate. See 18-A M.R.S. § 3-801.
Step 4: Publish a Notice to Unknown Creditors
The PR must also publish a notice in a local newspaper at least once within 30 days of appointment. This publication alerts creditors whose identities or addresses are unknown. See 18-A M.R.S. § 3-801.
Step 5: Claims Filing Period
Creditors then have six months from the date of the first publication to present their claims in writing. Claims filed after this deadline are barred unless the court grants an extension for good cause. See 18-A M.R.S. § 3-803.
Step 6: Review and Allow or Disallow Claims
The PR reviews each claim to determine its validity. If a claim is disallowed, the PR must notify the creditor in writing, explaining the reasons. Creditors may petition the court to contest a disallowance. See 18-A M.R.S. § 3-804.
Step 7: Pay Valid Claims by Priority
Once claims are approved, the PR pays them from estate assets according to Maine’s priority rules:
- Administrative expenses (court costs, attorney fees)
- Funeral expenses and family allowances
- Taxes owed by the decedent or estate
- General unsecured creditors
See detailed priority rules in 18-A M.R.S. § 3-1401.
Step 8: Final Accounting and Distribution
After paying valid claims, the PR prepares a final accounting for the court’s approval. Once approved, remaining assets distribute to heirs or beneficiaries under the will or Maine’s intestacy laws.
Helpful Hints
- Track all deadlines carefully; missing a claim deadline can bar valid debts.
- Use certified mail for known-creditor notices and keep delivery receipts.
- Save proofs of publication and affidavits from the newspaper.
- Open a separate estate bank account to avoid commingling funds.
- Maintain detailed records of claims received, reviewed, and paid.
- Consult an estate attorney for complex or disputed claims.