Legal Question in Wills and Trusts in Pennsylvania

1. A testator (person making a will) does not usually list debts in a will because at the time they make their will, they do not know which ones will still be outstanding at the time the will is admitted to probate. Therefore, the will usually contains a statement at the beginning of the will such as,

"...I hereby direct that all my just debts be paid as quickly and as practicably as possible after my death........."

Such a statement means that the decedent orders that all of his "just' debts be paid before any distributions are made to the beneficiaries. Although a formal promissory note signed by the decedent is not necessary to prove that the decedent owed money, a creditor, making a claim for payment of a debt, should have something in writing to show (the executor or the executrix) which evidences the debt, or in which the decedent acknowledges owing the debt.

For example, if the creditor has something written by the decedent such as, "I will not be able to make the payment to you this month because ....." This will show that the decedent owed the creditor some money. Unfortunately, although it proves that the decedent owed the creditor money, the exact amount is not known from that letter, so additional documentation would be necessary to show how much the decedent owed the creditor. Different types of evidence are admissible, including any books maintained by the creditor (or, even the decedent) which show that a certain amount was deducted each month, or anything showing somewhere what the starting balance was which the decedent owed. Even the decedent's checkbook showing the same amount being paid to the creditor each month will show that he owed a debt to this creditor.

2. The executor has an absolute legal obligation to see that all just debts of the decedent are paid in a timely manner by the estate and before any distributions are made to any beneficiaries. If the executor is not certain, then he has the obligation to retain the services of an Attorney on behalf of the estate to ascertain the validity of the debt. Denying a claim simply because the executor is not certain of the debt's validity will cost the estate a lot more when the creditor sues the estate. And, whereas the beneficiaries cannot hold the executor liable for retaining the services of an Attorney for the estate, they certainly can and will hold the executor liable for the additional expenses incurred by the estate if and when the creditor sues the estate for payment because he made a wrong decision about the debt without consulting an Attorney. The Attorney might even be able to negotiate with the creditor for a lesser amount than is actually owed. This is the perfect example where an executor can be penny wise and pound foolish. I am in Delaware County and will be glad to discuss this matter with you. I can be reached at 610-259-2724.

I agree completely with Attorney Tillis. Since the claimant claims that money is owed, he or she must have, at a minimum some evidence of the debt and the decedent's liability therefore and some indication as to how much is owed - a ledger - something. You cannot just make up a claim and stick a number on it. But it depends on the claim and the basis for liability. Anyone can file a claim. And the executor is free to accept or reject it in whole or in part and compromise the claim if it is somewhat legitimate and there are few assets. But you do not indicate what assets the deceased has or what other debts there are and what priority this claim would be if there are not a lot of probate assets.

I suggest that you consult with a probate attorney in your area to see what the best means of handling this claim is. If the claim is to be compromised or rejected, then you will need the attorney for that as well.