PROBATE
IN STATE OF CALIFORNIA
Payment of Bills and Debts
As soon as the executor or administrator is appointed by the court and obtains money, bills can be paid. Funeral, utility, credit card and other bills can be paid without any special legal formality.
Anyone can be required to submit a creditor’s claim in the estate. This is a special court form, which must be completed by the creditor and approved by the executor or administrator. If the executor or administrator wants this form submitted by a creditor then a notice must be sent to the creditor.
If the executor or administrator rejects a creditor’s claim, the creditor must file a lawsuit within three months of the rejection or lose all right to later sue. Before a lawsuit can be filed, the creditor must file a claim.
If John Doe is in an automobile accident and dies and other parties wish to sue his estate, they must file a creditor’s claim within the required period before they can file a lawsuit.
Most estates do not involve any creditor’s claims. The executor or administrator pays the outstanding bills and no one objects.