Legal Definitions - claim against an estate

A claim against an estate refers to a formal request made by an individual or entity who believes they are owed money, property, or other assets by a person who has recently passed away. This request is typically directed to the executor or administrator responsible for managing the deceased person's assets and debts (known as the estate) during the legal process of probate.

The purpose of filing such a claim is to seek payment from the estate for a debt or obligation incurred by the deceased before their death. State laws usually set a specific, limited timeframe during which these claims must be filed. The executor or administrator reviews the claim and can choose to approve it, approve it in part, or deny it. If a claim is denied, the person or entity making the claim (the claimant) may have the right to ask a court to review the decision. If there is no formal probate process, claims are generally directed to the deceased's legal heirs.

Here are some examples illustrating a claim against an estate:

• Example 1: Unpaid Personal Loan

  Imagine that Mr. Rodriguez loaned his friend, Ms. Evans, $10,000 to help her start a small business, with a written agreement for repayment within two years. Ms. Evans unfortunately passed away unexpectedly six months later, having repaid only a small portion of the loan.

  How it illustrates the term: Mr. Rodriguez would file a "claim against an estate" with the executor of Ms. Evans' estate. His claim would detail the outstanding loan amount, provide the written agreement as evidence, and request that the remaining balance be paid from Ms. Evans' assets. This demonstrates a direct debt owed by the deceased that a creditor (Mr. Rodriguez) is seeking to recover from the estate.

• Example 2: Outstanding Professional Services

  A local landscaping company, "Green Thumb Gardens," completed a major backyard renovation project for Mr. Chen. They submitted an invoice for $7,500 for their services and materials, but Mr. Chen passed away suddenly before the payment could be processed.

  How it illustrates the term: Green Thumb Gardens would submit a "claim against an estate" to Mr. Chen's estate administrator. They would provide the invoice, a copy of the contract, and proof of the completed work. This example shows how a business or service provider can seek payment for services rendered to the deceased, which becomes a debt of the estate.

• Example 3: Unpaid Utility Bills

  After Mrs. Davies passed away, her utility company, "City Power & Light," discovered that her final two months of electricity bills, totaling $350, had not been paid.

  How it illustrates the term: City Power & Light would file a "claim against an estate" with the executor of Mrs. Davies' estate to recover the outstanding utility costs. This illustrates how even routine household debts, if unpaid at the time of death, become claims against the deceased's estate.