The personal representative of someone’s estate has a lot of responsibility. They will have to attend probate proceedings and take care of all of the assets in the estate. They also have a responsibility to repay the debts a testator left behind when they died.
Anyone who will help handle probate proceedings or the administration of a Texas state needs to know the rules for debt when handling an estate. Debts can be a major drain on estate assets, as well as a possible source of liability for the personal representative of the estate.
Every creditor has the right to repayment
From massive credit card bills to student loans and unpaid balances at the hospital, all of the debt owed by the deceased individual becomes the obligation of their estate when they die. The personal representative of an estate must notify known creditors as soon as possible about the administration of the estate. They also need to publish notice about the estate so that other creditors can file claims in probate court.
Even if it requires that they sell off all of the assets in the estate, the representative must repay all the creditors with valid claims. The personal representative of the estate could be held accountable for unpaid debts if they hand out the property from the estate before fully paying back all creditors they know about or that have filed a claim in probate court.
Learning the rules that govern probate proceedings in Texas can help you avoid potentially expensive mistakes and set realistic expectations about what you will receive from the estate.