Creditor Claims in Massachusetts Probate: Filing, Priority & Contesting

Losing a loved one is one of life’s most difficult experiences. Amid the emotional toll of this loss, families often also face the challenge of managing probate proceedings, the legal process for settling a deceased person’s estate.

Within this process, creditor claims—requests for payment from the estate for debts owed—can add another layer of complexity.

For three generations, CASEY LUNDREGAN BURNS, P.C. has been a trusted name in Massachusetts estate and probate matters. Our firm is committed to guiding families through the probate process with care and clarity.

What Are Creditor Claims in Massachusetts Probate?

Creditor claims in Massachusetts probate are legal requests by individuals or businesses seeking the repayment of debts owed by a deceased individual. Creditors must file these claims against the decedent’s estate, which is responsible for settling outstanding obligations before distributing any remaining assets to beneficiaries.

Understanding creditor claims is a crucial step in effectively administering an estate. Without proper handling, creditor claims can disrupt the probate process or lead to disputes among beneficiaries and creditors.

Filing Deadline for Creditor Claims

Massachusetts law imposes a strict one-year deadline for filing creditor claims. Creditors must submit their claims within one year of the decedent’s date of death, regardless of when they become aware of the passing.

Missing this deadline can result in the claim being barred entirely, leaving creditors without legal recourse.

This tight timeline underscores the importance of prompt action. Executors or personal representatives should seek legal guidance early to assess potential claims and notify creditors as required by law.

Creditor Claims’ Filing Requirements

Filing a valid claim requires creditors to  submit their claims in writing to the estate’s personal representative or executor.

Each claim must include accurate and complete documentation to substantiate the debt, such as contracts, invoices, or account statements. This documentation is crucial to ensure the claim is properly evaluated and approved.

There are several methods available for filing creditor claims, including in-person delivery, mail, or electronic submission, depending on the estate’s specific requirements.

Timeliness and thoroughness in filing can help avoid unnecessary delays or disputes during the probate process.

The Priority of Claims

In Massachusetts probate, creditor claims are addressed in a specific order to ensure fairness. The process prioritizes funeral and burial expenses first, followed by debts and taxes owed to the Commonwealth, such as income or estate taxes.

Medical expenses related to the decedent’s final illness are next, with unsecured debts like credit cards or personal loans addressed only after these higher-priority obligations.

Secured debts, tied to specific assets such as a mortgage or car loan, are treated differently from unsecured debts. These debts must be settled either by payment or by selling the secured asset.

For example, an outstanding mortgage may require the sale of the house to cover the debt.

Unsecured debts, which lack collateral, are paid only after all higher-priority and secured debts are resolved. Proper administration ensures debts are addressed in the correct order, minimizing disputes and protecting the estate’s integrity.

How to Contest Creditor Claims

There are times when creditor claims may be disputed, either by the estate or its beneficiaries. Disputing a claim requires careful preparation and knowledge of the law.

Grounds for Contest

Common reasons for contesting creditor claims include:

  • The debt is invalid or was paid before the decedent’s death.
  • The claim was filed after the statutory one-year deadline.
  • There is insufficient evidence to support the claim.
  • The claim amount is unreasonable or excessive.

The Contest Process

Contesting a creditor claim typically involves the following steps:

  1. Collect evidence that supports the estate’s objection.
  2. Prepare and file a written objection with the probate court.
  3. Participate in court proceedings to present the case.

Potential Consequences of Contesting

While contesting a claim may benefit the estate, it can also result in legal fees and extended probate timelines. Executors should weigh the costs and benefits carefully and consult with legal professionals before proceeding.

Important Considerations Regarding Creditor Claims in Massachusetts Probate

Handling creditor claims in probate requires addressing specific challenges like late claims, special deadlines, and the risk of premature payments. Awareness of these issues is essential to safeguard the estate and its beneficiaries.

Late Claims

Creditors can sometimes address late claims through a “complaint in equity,” but this process is challenging and rarely successful. Creditors should always aim to file within the statutory deadlines.

MassHealth Claims

MassHealth, Massachusetts’ Medicaid program, has a unique three-year filing deadline for claims against estates. These claims often represent significant amounts and can significantly impact estate planning and administration.

Creditor-Initiated Probate

In certain cases, creditors may initiate probate proceedings if the estate has not yet entered probate. This can complicate matters for the decedent’s family and beneficiaries, so it is essential to act promptly after a loved one’s passing.

Early Payment Risks

Executors should avoid paying claims too early, as doing so may result in personal liability if other valid claims are later filed. Before making payments, it is essential to thoroughly review all potential claims.

Contact CASEY LUNDREGAN BURNS, P.C. to Resolve Creditor Claims in Massachusetts

Handling creditor claims during probate can feel overwhelming, but you do not have to face it alone.

At CASEY LUNDREGAN BURNS, P.C., we are here to guide you through every step of the process. Our firm provides personalized and compassionate legal services to help you address creditor claims effectively and protect your loved one’s estate.

Call us today at 978-878-3519 for a free consultation to discuss your situation and explore your options. With three generations of experience in estate and probate law, we are committed to delivering the guidance you need to move forward with confidence.

The information in this post is not intended as legal advice or as a substitute for the particularized advice of counsel. For more information, please consult an attorney.