How to Handle Insolvent Estates

Not all insolvent estates should be probated by the named personal representative in the will or the default personal representatives under the Massachusetts Probate Code. Probating an insolvent estate starts with an analysis of whether your client should undertake the endeavor at all. Knowing where your clients’ rights rank among the priority of claims is a critical first step to deciding whether your clients should bother with this undertaking. With the right analysis at the outset, you can ensure that only the cases that benefit your clients are undertaken by your clients.

Having determined that your client would benefit by seeking to be appointed the personal representative of the estate, or having discovered the estate is insolvent after your client has been appointed, the faculty next discuss the pitfalls and perils to avoid when satisfying the claims of creditors. The stakes are high for the would-be personal representative. Adding insult onto injury, failure to pay only the creditors entitled to payment could result in your client being personally liable for any erroneous payments made.

Hear the faculty explain how the priority of claims statute in the Massachusetts Probate Code works in the Probate Courts. Learn about the importance of the one-year statute of limitations on claims so you can properly advise your clients on which claims to pay, how much, and when.