Can an executor with hold distribution based on impending medical bills?

Question

My sister refuses to distribute my mother’s estate based on the chance that medical bills might still need to be paid for the next two years.  She is refusing to distribute monies for two years.

Gerald Bagazinski · Answer

This seems a bit extreme. Did she file a creditors notice and notify all the medical providers.

Janis Blough · Answer

You should retain experienced counsel to move for distribution or replacement of  the PR, your sister. If she published the notice to creditors and waited four  months thereafter, all claims are barred and there is no need to hold up distribution and closing of the estate.

Shadi Ala'i AlaiShaffer · Answer

Yes, in fact they are required to do this.

Mark Schaefer · Answer

Yes, she is required to ensure that all valid debts are paid before she distributes money to heirs or beneficiaries.  However, two years is too long in most cases. If the estate is in Georgia, you can demand a distribution six months after she is appointed as Executor or Administrator.  If she refuses, you can ask the court to have her show why she cannot settle the estate.

Dara J. Goldsmith · Answer

The court appointed executor is personally responsible for all bills that are timely filed against the estate to the extent the Executor has distributed assets to others.  The Executor needs to file a notice to creditors in the case, the number of days is determined by statute, then mail to all known creditors and publish to all unknown creditors.  This should be completed with the appropriate passage of time before any distributions occur.

Brian Haggerty · Answer

She can, to a reasonable extent. Two years is a bit long, but it can easily take a year. And, the hospitals and doctors can give reasonable estimates of how much is expected. She'll have to file her account in court, object to it and show she's being unreasonable.

Eric Lewis · Answer

that does not make any sense. All claims must be filed against a decedent's estate within a prescribed time.  if creditor claims are not timely filed, they are disallowed.

Darin Christensen · Answer

If the estate is probated, creditors have to present their claims within 4 months of publication of notice to creditors or 30 days after actual notice.  If she has sent the required notice to known creditors and published notice for unknown creditors and if the estate otherwise is ready for distribution, she should be able to distribute the assets within a month or two after the end of the four month period.

Leonard A. Kaanta · Answer

In Michigan, creditors have 6 months to file claims, not two years.

Thomas Edward Gates · Answer

No, there is a timeline for all creditors to submit their claims against the estate.  After that date, no late claims are honored.  Until all creditors are paid, the beneficiaries will not receive any distribution.

Jayne Sebby · Answer

Creditors have a statutorily-limited time to submit bills or claims against the estate once they are notified of a person's death.  If they don't submit the complete bill within that time, they are banned from any future claims against the estate.  Your sister should be able to distribute the estate once all of the creditors who have submitted a claim against the estate within the alloted time period are paid.

William H. Von Willer · Answer

If the estate has otherwise been administered, she should close the estate.  You  could file a petition with the Probate Court to have a hearing on the issue.

Edwin Fee · Answer

Generally, claims must be filed against an estate within 6 months of the date of death.  So there should not be any reason to wait two years.

Richard Keyes · Answer

I am assuming that there is a probate estate opened in this matter.  In Missouri, we call the executor the personal representative.  When the estate is opened and your sister is appointed the personal representative, notice is published for creditors to file claims against the estate.  The creditors have six months from the date of first publication to file claims.  If they do not do so, their claims are barred.  If the six months claims period is up and your sister refuses to close out the estate, then you need to hire an attorney to file a motion to get your sister removed as personal representative for failing to do her duties as personal representative.

James Oberholtzer · Answer

It is very unlikely that she can wait two years for unknown bills.  If the probate of the estate has been commenced and the notices given, there is  a set time period for claims to be presented.  If they have not been presented during this time, they are barred.  There are a few exceptions to this bar, but if they do not apply, there is not a legitimate reason to keep the estate open.

Paul Nidich · Answer

Creditors must file claims within 6 months of the date of death.  If not claim is presented within 6 months, the executor can make distribution without concern for further claims.  However, you should check with the attorney handling the Estate.

Edward Armstrong · Answer

The executor has considerable discretion. You should ask your sister about "partial" distribution. You might suggest supervised administration which would require court approval for many activities but would also protect your sister in the event family or other beneficiaries question her actions.  You probably should retain counsel to advise you in this regard.

Gregory Thomas Taylor · Answer

In Kentucky, creditors have to file claims within 6 months of the opening of the estate, otherwise they are time barred pursuant to KRS 396.011. So there is no need to wait more than that time for claims to come in and your sister can distribute the estate as long as it's been 6 months from the opening of the estate.

James Frederick · Answer

Is an estate open? If so, has there been a publication of a notice to creditors? If so, creditors have 4 months to bring a claim against the estate. If they fail to do so, then their claim is barred. There is no reason to keep an estate open for two years. P.S. If there is no estate, then your sister is not the Personal Representative. It is unclear how she would have control, if that were the case. She is obviously not represented by an attorney. She probably should be.

Victor Waid · Answer

Is your sister probating the will in a probate court? If so, She would have had to publish in a newspaper off general circulation for a month, which allows creditors to file a creditors claim for payment of their billing; the claim is filed in the probate action and creditors have four months for filing. If government assistance  for medical care was provided by the state, then you will have to have a clearance from the state, as the state has a right of recovery. The state has a  right to reach back for a period of three years to recover payment of the medical services  provided  they paid for.

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