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How does the probate process address debts owed by the deceased?

On Behalf of | Jan 14, 2025 | Probate & Estate Litigation |

When someone passes away in Georgia, their debts don’t automatically disappear. The probate process ensures that creditors receive payment from the deceased’s estate before the remaining assets are distributed to beneficiaries. This structured approach provides clarity for all parties involved.

Identifying and notifying creditors

The probate process in Georgia begins with identifying all potential creditors. The executor of the estate—appointed by the court or named in the will—must notify creditors of the individual’s death. Georgia law requires the executor to publish a notice in a local newspaper for four consecutive weeks. This public notice gives creditors the opportunity to file claims against the estate within three months of the notice.

Validating and prioritizing debts

After receiving claims, the executor evaluates their validity under Georgia law. Common debts include credit card balances, medical bills, loans, and unpaid taxes. The executor prioritizes these debts based on legal guidelines. Certain debts, such as funeral expenses, taxes, and secured loans, often take precedence over others. Unsecured debts, like credit card bills, are typically addressed afterward.

Using estate assets to pay debts

The executor uses the deceased’s assets to pay valid debts. This can include liquidating bank accounts, selling real estate, or transferring other valuable property. If the estate’s assets are insufficient to cover all debts, Georgia law determines the distribution hierarchy. In such cases, creditors may receive partial payment or none at all.

Resolving disputes and protecting beneficiaries

Disputes can arise if creditors believe the executor improperly handled claims. Georgia probate courts may intervene to resolve disagreements and ensure fairness. Once the executor pays all valid debts, they can distribute the remaining assets to beneficiaries according to the will or Georgia’s intestacy laws.

Effective estate administration in Georgia demands diligence and informed decision-making. With the right resources and professional support, executors can manage their responsibilities confidently while honoring the wishes of the deceased.