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This notice serves to inform creditors of a deceased debtor, allowing them to take appropriate actions to recover debts owed. Creditors must send notices to the Comptroller of Public Accounts within one month of receiving letters regarding the deceased. Secured claimants should present their claims within two months, while unsecured creditors are urged to act within four months to avoid losing their claims. Methods for notification include certified and registered mail, and penalties apply for failure to notify creditors properly.
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Purpose of notice • Inform creditors that their debtor is dead so creditors can take steps to get paid.
1. Notice to Comptroller of Public Accounts • Authority • PC § 294(a) • EC § 308.051(a)(2)
1. Notice to Comptroller of Public Accounts • When? • Within one month of receiving letters
1. Notice to Comptroller of Public Accounts • Condition • Only if decedent remitted (or should have remitted) taxes administered by the comptroller. • Advice = give notice regardless
1. Notice to Comptroller of Public Accounts • Method • Certified mail • $3.10 plus postage cost • Registered mail • $11.20 (if no $ value on package) plus postage cost
2. General Notice to Creditors • Authority • PC § 294(a) • EC § 308.051(a)(2)
2. General Notice to Creditors • When? • Within one month of receiving letters
2. General Notice to Creditors • Method • Publication in newspaper in county where letters issued.
2. General Notice to Creditors • Sample
3. Secured Claimants • Authority • PC § 295 • EC § 308.053 • Examples • Mortgage on real property • Lien against real property (e.g., unpaid property taxes) • Security interest (Article 9 UCC)
3. Secured Claimants • When? • Within 2 months of receiving notice, or • Within a reasonable time after learning of the secured claim, if learn of claim after the two month period.
3. Secured Claimants • Method • Certified mail, return receipt requested • $3.10 • $2.55 physical return receipt or $1.25 electronic return receipt • Postage cost • Registered mail, return receipt requested • $11.20 (if no $ value on package) • $2.55 physical return receipt or $1.25 electronic return receipt • Postage cost
4. Unsecured Claims • Authority • PC § 294(d) • EC § 308.054 • Examples: • Credit cards • Utilities • Services
4. Unsecured Claims • Optional • The PR is under no duty to “help out” the unsecured creditors other than by publishing notice.
4. Unsecured Claims • “Reward” for giving notice • Unsecured creditor must present claim within four months. • If not, claim is forever barred, even if the SoL has not run!! • Term of art = Non-claim statute
4. Unsecured Claims • Method • Certified mail, return receipt requested • $3.10 • $2.55 physical return receipt or $1.25 electronic return receipt • Postage cost • Registered mail, return receipt requested • $11.20 (if no $ value on package) • $2.55 physical return receipt or $1.25 electronic return receipt • Postage cost
Penalty for not giving required notices • Authority • PC § 297 • EC § 308.056 • PR is personally liable for all damages the creditor suffers due to the failure to give proper notice.
