Estate claims are written requests for an estate to pay money that a decedent owes. If you believe that you are owed money by the decedent or you have rightful inheritance to the assets of the decedent, then you must file a claim against the estate. However, there are many aspects of estate claims that need to be covered to fully understand this topic.
Probate Process
When a person passes away, depending on what they own at the time of their death, their estate may need to go through a legal process called probate. Probate assets generally include property the decedent owned in her own name at death. Non-Probate assets generally include property that passes to another person automatically without any judicial intervention such as joint accounts, life insurance proceeds and payable-on-death accounts. For cases that proceed through the probate process, the Court will name an executor or administrator of the estate. That person’s role is to identify and manage assets, pay debts and taxes of the decedent from the decedent’s funds, and distribute the remaining assets to the decedent’s beneficiaries under the decedent’s will or under the Tennessee laws of intestacy if there is no will.
Two Types of Estate Claims
1.) Creditor Claims: Sometimes a decedent owes money to another person or entity at their death. These are called creditor claims. Probate provides an opportunity for creditors to file against the estate to recover debts owed.
2.) Beneficiary Claims: These claims are made by beneficiaries or heirs of the estate asserting their rights to inherit assets or challenging distributions made by the executor or administrator.
How Can Estate Claims Affect You
As a Creditor: If you are owed money by the deceased person, you may file a claim against the estate during probate. The estate’s assets are used to pay off these claims in order of priority set by Tennessee law. Most claims must be filed within one year of the decedent’s death (see Tennessee Code Annotated § 30-2-307). A notable exception is that TennCare may file a claim even after one year.
As a Beneficiary: If you are named as a beneficiary in the deceased person’s will or if you believe you are entitled to inherit under Tennessee intestate succession laws which is outlined in Tennessee Code Annotated §31-2-104 (if there is no will), you may file a claim to assert your rights. This could involve contesting the validity of the will or objecting to distributions made by the personal representative.
Court Involvement: If disputes over the estate cannot be resolved informally, they may be litigated in probate court. This can involve hearings where evidence is presented to determine the validity of claims or the proper distribution of assets.
An estate claim in Tennessee, whether you’re a creditor seeking repayment or a beneficiary asserting inheritance rights, involves navigating the probate process and adhering to specific legal requirements and timelines. It’s crucial to understand your rights and obligations under Tennessee probate law. Call us today to schedule a consultation with one of our experienced attorneys who can help you determine next steps.
DISCLAIMER: The purpose of this article is to provide the general public with general information related to legal issues. None of the information provided within this article is intended to be construed or relied upon by any person(s) as legal advice. Further, reading this article does not create an attorney/client relationship between the reader and the author. If you need legal advice, it is recommended that you speak with an attorney who is licensed to practice law in your jurisdiction and practices the subject matter for which you are seeking legal advice.