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Someone passes away, and suddenly the phone rings with unpaid bills, formal letters arrive, and people ask for money. Handling those requests is not as simple as writing a check. Texas law has a clear process to protect the estate and pay debts in the right order. If you’re a family member, heir, or executor, knowing how to handle claims against an estate can save time, avoid legal mistakes, and keep the estate from running into more problems. It’s not just about sorting paperwork—it’s about protecting what’s left behind.
What Counts as a Claim Against an Estate?
A claim is any request for payment made against the deceased person’s assets. Common types include:
- Credit card balances
- Medical bills
- Unpaid loans
- Business debts
- Lawsuits
- Taxes
- Funeral expenses
- Reimbursement for caregiving or property repairs
Even family members can file claims if they paid bills or covered expenses before death. The court reviews each one based on validity, timing, and priority.
Who Handles the Claims?
In most cases, the executor listed in the will manages these duties. If the deceased left no will, the court appoints an administrator. This person becomes the personal representative of the estate. They must:
- Notify creditors
- Review claims
- Accept or reject payments
- Defend the estate against lawsuits if needed
- Follow court procedures
Failing to handle claims properly can result in personal liability. That’s why many executors hire a probate attorney to help.
Step-by-Step: Responding to Estate Claims in Texas
Step 1: Open the Estate in Court
The process begins when the will gets filed and the court appoints an executor. If there’s no will, the family files for administration. The court issues “Letters Testamentary” or “Letters of Administration” to authorize the representative to act.
Step 2: Notify Creditors
Texas law requires personal representatives to publish a notice to creditors in a local newspaper within one month after appointment. This alerts unknown creditors and starts the clock on filing deadlines.
Representatives must also send certified mail to known secured creditors, such as mortgage lenders or car finance companies. For other known unsecured creditors, sending notice is optional but recommended.
Step 3: Wait for Claims
Once notified, creditors have a specific window to file claims:
- General creditors usually have four months after publication
- Secured creditors have six months or until the estate closes
- Lawsuits must begin within applicable statutes of limitations
- Government claims, such as taxes, may follow different timelines
Claims must be in writing and filed with the probate court or presented directly to the representative.
Step 4: Review and Classify Each Claim
The representative must review every claim and decide if it’s valid, partially valid, or clearly wrong. They can ask for more information, request backup documents, or consult with a probate lawyer.
Texas law groups claims into categories. These matter when deciding what gets paid first. The order of priority usually follows this list:
- Funeral expenses and costs of last illness
- Administrative costs of the estate
- Secured debts and taxes
- Child support owed by the decedent
- Judgments against the deceased
- Other valid unsecured debts
If the estate lacks enough assets to pay everyone, the lower-priority claims might get reduced or denied.
Step 5: Accept or Reject Claims
The representative can approve the full amount, approve a reduced amount, or reject the claim. They must file a written response with the court within 30 days.
If they accept it, the court includes the debt in the estate’s liabilities. Payment happens when enough funds are available. If they reject it, the creditor must file a lawsuit within 90 days to fight the denial.
Silence counts as rejection in Texas probate law. Creditors must watch deadlines closely.
Step 6: Pay Approved Claims in Order
Once the estate gathers enough funds through bank accounts, property sales, or liquidated investments, the representative begins paying debts. They must follow the legal order of priority.
If the estate runs out of money, some creditors may get nothing. Beneficiaries only receive inheritances after debts get paid in full. Sometimes heirs lose assets to cover unpaid claims.
Step 7: Close the Estate
After all debts and taxes are resolved, the executor submits a final accounting to the court. This report shows what the estate received, spent, and distributed. Once the court approves it, the estate can close and distribute any remaining assets to beneficiaries.
Common Issues During the Claims Process
Late Claims
Creditors who miss deadlines lose their right to collect. This rule protects the estate and lets families move on. But some creditors may try to sneak claims in late, especially when large estates are involved. The representative must stay alert and reject invalid submissions.
Disputes Between Family and Creditors
If a family member disagrees with a claim—especially one that reduces their share—they can object in court. This often happens when caregivers ask for payment or old loans resurface. The probate judge resolves the issue based on evidence.
Unknown Creditors or Hidden Debts
Sometimes, new debts show up after distribution. If the estate already closed, the creditor might sue the heirs or the representative personally. That’s why careful notices and deadlines matter.
Lawsuits Against the Estate
If the deceased had pending lawsuits, the representative must step into their legal place. These cases may affect how much money remains. Personal injury claims, business disputes, or contract breaches all carry weight in probate court.
Tips for Executors and Administrators
- Keep detailed records of every communication, payment, and deadline
- Send certified notices and save receipts
- Use estate funds only for court-approved expenses
- Don’t pay informal debts without proper filing
- Get legal advice before rejecting a claim
- Stay transparent with heirs throughout the process
Handling claims takes time, attention, and patience. Rushing payments or ignoring deadlines leads to legal and financial trouble.
Can Beneficiaries Help?
In most cases, beneficiaries cannot act on behalf of the estate unless they become the representative. However, they can report suspicious claims, request updates, and object to unfair distributions.
If an executor favors one creditor or mishandles funds, beneficiaries can ask the court to intervene or remove them. Transparency protects everyone involved.
What About Small Estates?
Texas offers simplified options for small estates valued under $75,000 (not counting exempt assets like a homestead). These cases may avoid full probate, but claims still apply. Filing a Small Estate Affidavit requires notice to creditors and attention to unpaid debts.
Even simple cases need proper planning. A probate lawyer can help families decide the best path forward.
Final Thought
Handling claims against an estate in Texas takes more than signing checks. It’s a legal process with deadlines, court rules, and strict priorities. Executors must protect the estate, honor the deceased, and follow state law every step of the way.
Paying debts in the wrong order or skipping notices opens the door to lawsuits. On the other hand, following the process gives families peace of mind and keeps probate on track. Patience, records, and legal help make the difference between a smooth case and months of court battles.
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FAQs
Texas probate is a legal process that oversees the handling of a deceased person’s estate. It’s like the sheriff of the estate world, ensuring that debts are settled, assets are distributed fairly, and the deceased’s last wishes, as outlined in their will, are honored.
Texas probate law serves as the rulebook for this process. It provides the legal framework for validating wills, appointing executors (the folks who oversee the process), and resolving any disputes that may arise during the estate’s asset distribution.
A well-drafted will and estate plan are like your script for this performance. Having these in place can minimize surprises and reduce drama. If things get complicated, consider seeking assistance from legal professionals well-versed in Texas probate law. They can help you navigate the process and find solutions to disputes.
If you believe you have a valid claim against an estate, it’s advisable to seek legal counsel. A Texas probate attorney can help you understand the process, evaluate your claim, and guide you through the necessary steps to ensure it’s properly addressed in accordance with Texas probate law.
The duration can vary depending on the complexity of the estate, the number of claims, and any potential disputes. Simple estates may be resolved relatively quickly, while more complex cases can take several months or even longer. Seeking legal advice can provide a better estimate for your specific situation.
