During an estate administration procedure, a creditor has to file a claim against the deceased person’s estate within seven months once the Surrogate’s court issues an order. The deceased person’s family members will not be able to collect property unless a fiduciary of the estate is designated.  The fiduciary notes the collection of the assets even pays the decedent’s creditors and divides the remaining assets into rightful hairs. The court appoints the fiduciary and in case, the creditor does not claim the deceased’s estate within seven months of issuance of letters the fiduciary will not be blamed or charged.

Because the fiduciary’s main responsibility is asset distribution and clearing debts of the deceased in good faith. Meanwhile, the estate law in New York does not talk about any statute of limitations that prevents the creditor from filing another claim after the said time.

The Surogate’s Court Procedure Act §1802 states that the creditor after crossing the estate administration timeframefiles for another claim it has to be enforced against the asset’s distributes instead of the fiduciary. The fiduciary will not be blamed for the distribution of assets before the creditor gets a hold of the asset. Nevertheless, when the fiduciary knew about the claim made by the creditor before the period he made the distribution of assets, in that case, he would be personally liable for the delay.

Creditors must know about their responsibility for an estate administration and be aware of the estate administration timeframe and the established procedures. The fiduciary has to answer to the court if he does not clear the hospital bill knowing the deceased left his last breath in the hospital, which is even clearly stated in the death certificate. 

Things can get even more complicated if the fiduciary finds out that the decendent was getting Medicaid benefits before death. In this situation, the appointed fiduciary must find out whether the deceased despite getting Medicaid benefits gave some of his assets to distribute before fulfilling requirements for a Medicaid lien (A pause on any funds that the accountable person or organization has promised to pay you to help you become well). In that case, waiting for more than the estate administration timeframe is understandable. Fiduciaries must see an elder law attorney if they realize that the deceased has benefited from Medicaid. The lawyer will determine whether the fiduciary can make the distributions or not. Medicaid frequently takes longer than seven months to register a lawsuit because it requires time to evaluate which Medicaid benefits are recoverable by Medicaid and to submit a claim for the appropriate sum.

Individuals who are in the midst of estate fiduciary and unable to make the right decision should consult with an estate lawyer in New York at the law offices of Roman Aminov, P.C. Dial 347-766-2685 and find solutions for your estate issues today.  

Roman Aminov Estate Law Firm of NYC 260 Madison Ave #204, New York, NY 10016, United States +12122019299 https://www.aminovlaw.com/