Last month I provided a training tip regarding Estates, referencing, in particular, the usage of Open Estate Indemnity Agreements. The implication of my “Tip” was that if an Executor signed the Deed, then we would not need an Open Estate Indemnity Agreement executed. In retrospect, I believe my guidance was incomplete.
My sincerest apologies.
In order to give you really good guidance, I think I need to expand a bit. Everyone knows that an Executor’s main function is to distribute a deceased’s person’s assets upon death. What we legal-types know — that most lay people do not realize — is that equally important to an Executor’s responsibilities is the payment of the Decedent’s debts. The Executor has an important responsibility to determine the amounts of the Decedent’s debts and to make sure that there are sufficient assets in the Estate to pay those debts. As an exercise of that responsibility, the Executor will advertise a Notice to Creditors, the purpose of which is to identify any debts against the Decedent. The Executor will also likely send that notice to any known creditors. These actions have the effect of causing claims to be filed against the estate. The question we often receive is DO WE HAVE TO PAY CLAIMS OF THE ESTATE AT CLOSING.
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