DO I HAVE TO PAY THAT CLAIM AGAINST THE ESTATE? – maybe not!

Personal Representatives may find themselves facing questionable claims in the estate they are administering.  Whether it is a claim for a Decedent’s unpaid credit card bill showing charges from months after her date of death, or a medical bill for a procedure the Decedent never underwent, it can be frustrating to determine whether a claim is legitimate and disappointing to have to reduce estate funds to pay it. 

Although Personal Representatives have an obligation to pay legitimate claims, that obligation does not arise during the claim filing period (generally, six months after the Decedent’s death).  In the meantime, Maryland law provides an avenue to disallow questionable claims against an estate, in whole or in part, by filing a Notice of Disallowance.  A Disallowance may be appropriate when the Personal Representative has a substantive or procedural objection to the claim. 

If a creditor fails to act within sixty days after the Personal Representative mails the Disallowance, the claim is barred and the estate will not have to pay it.  If the creditor does act timely, he may have to produce additional information or further justification about the claim and may also have to attend a hearing.   

If the claim warrants it, further avenues may be available by bringing an action in the District or Circuit Court.  

If you believe an illegitimate or untimely claim has been filed against an estate you are administering, contact us to discuss which options are most suitable for you.