Dealing with debt after a loved one has passed can be difficult, but understanding the probate process is crucial to ensure proper distribution of assets. With our in-depth knowledge of estate planning and probate, Mark Harford Law is here to help you every step of the way. In this article, we’ll provide expert insights into how to handle debts of the deceased during probate in Missouri, helping you understand the process with clarity and confidence. Reach out to us for personalized and compassionate assistance today.
Probate in Missouri
When a person dies, their outstanding debts don’t simply don’t go away. Instead, any debts, along with the individual’s assets, must be handled through probate, which is the formal legal process used to administer a deceased person’s estate.
Probate involves identifying and gathering the decedent’s assets, settling any legitimate debts, and finally distributing the remaining property to the intended beneficiaries or heirs. Before any inheritance can be passed on, the estate is legally required to pay off all valid debts using available estate assets.
The person responsible for managing the estate and overseeing probate is known as the executor (or personal representative), typically named in the deceased’s will and officially appointed by the court. The executor must formally begin the probate process by filing a petition with the probate division of the circuit court in the county where the deceased last resided.
Debts Are Required to Be Paid From The Estate
Once the personal representative is appointed and letters testamentary or of administration are issued, a publication will be made to notify potential creditors. The timeframe for collecting a debt from a deceased individual’s estate is strictly limited under Missouri law. Creditors generally have one year from the date of the decedent’s death to file a claim against the estate, or six months from the date of the published notice of letters testamentary or of administration, whichever occurs earlier.
Failure to file within the deadline results in the creditor being permanently barred from collecting the debt. If a claim is filed in a timely manner and found to be legitimate, it must be paid from the available assets of the estate, in accordance with the priority rules established in probate law.
Priority of Debt Payment According to Missouri Law
Under Missouri law, there is a clearly defined order of priority for repaying a decedent’s debts through their estate. This hierarchy ensures that certain financial obligations, particularly those considered essential or legally mandated, are paid before others. Regardless of the nature of the debt, all outstanding financial obligations must be settled from the estate’s assets before any distributions can be made to beneficiaries or heirs.
Under MO Rev Stat § 473.397 (2024), the order of priority states that probate administration costs, burial and funeral expenses, federal taxes, medical expenses, and state taxes be paid prior to unsecured debts, like credit cards or personal loans. Payments are made according to this priority order until all debts are paid or the estate’s assets are exhausted.
Can Beneficiaries or Heirs Be Responsible for Debt?
If there are not enough assets in the estate to cover all debts, any remaining unpaid debts are discharged, or “written off.” In these cases, creditors will not receive any payment, and heirs/beneficiaries will thankfully not be personally liable for the decedent’s unpaid debts.
A beneficiary may only be liable for a deceased person’s debt in certain situations, typically if they were jointly responsible for the debt before the person’s death. For example, if they were a co-signer on a loan, a joint account holder, etc. Additionally, a spouse may be responsible for necessary expenses, such as medical bills, if there were no separate assets between them. If you have questions related to liability to a debt, then reach out to an estate attorney.
Contact Mark Harford Law for Probate Help in Missouri
The probate process in Missouri can be overwhelming. If you’ve recently lost a loved one, we can help you navigate the complexities of settling debts and distributing assets without any additional stress. With extensive experience representing Executors, Administrators, Trustees, and beneficiaries in probate and estate matters, Mark Harford Law is here to provide the guidance and support you need. Contact us today and we can help make this challenging process easier for you.