Personal representatives are fiduciaries charged with administering a decedent’s estate, but this must occur within the confines of the law. Before assets can be distributed to heirs, all allowable creditors must be addressed and/or paid. The first step is to notify all known creditors directly and publish a notice to all possible unknown creditors. Later, what are a personal representative’s duties to both the estate and the creditors?
Your supervising attorney, Millard Smart, has asked you to draft a letter on his behalf to Joan Blake, a client recently appointed as a personal representative. The letter should outline Joan’s fiduciary duties to creditors of the estate. Use Texas statutes to assist with the preparation of the letter.
Click here to download the Letter template.
CLICK HERE and Enter Company Name
Company Address & Phone Number
March 3, 2005
Receipient’s Name & Address
RE: Estate of Name of Estate
One of your obligations as personal representative is to determine the estate’s debts and, to the extent funds are available, pay those debts. A personal representative is a fiduciary. That term implies a position of trust and confidence and implies that certain duties are owed to others.
Every estate has creditors. For example, Give examples here.
One very important duty that the law requires of you is to determine the name and address of each creditor in existence as of the moment of death. You must make a “diligent search” of all available sources to determine the creditors. Provide a list of possible procedures that could be used to make a diligent search to determine the estate’s creditors.
Once the estate’s creditors have been determined, you are required to notify the creditors of the requirement of filing a claim. You must accomplish the search promptly because the legal notification must be sent to the creditors within approximately input the time requirement under your state statute after your appointment as personal representative. Receipt of this notice by the creditor allows them input the time requirement under your state statute in which to file a claim or input here what happens under your state statute if the creditor does not meet the time deadline for filing a claim.
If you have any questions, please do not hesitate to phone me. I can be reached during regular office hours of 8:00 a.m. to 4:30 p.m., or you may leave a message on my voice mail.