Who Is a “Reasonably Ascertainable” Creditor of a Florida Probate Estate?

Florida probate rules impose strict time limits on the filing of creditor claims. That is, anyone who claims the deceased owed them money must file a written claim with the personal representative of the decedent’s estate within a certain period. This deadline is either 3 months from the date a notice to creditors is first published in the newspaper, or 30 days after the creditor is personally served notice by the personal representative, whichever is later.

Additionally, the personal representative has a legal duty to “make a diligent search” to determine the “reasonably ascertainable” creditors of the estate and serve them notice. If a reasonably ascertainable creditor is not given notice, they must be given an extension of time to file their creditor claim against the estate. No claim may be filed more than 2 years after the Decedent’s date of death.

Siblings Dispute Payment of “Personal Services” Contract

In most cases, it is not difficult to determine who is a reasonably ascertainable creditor of an estate. But disputes do arise on this point. Just recently, the Florida Second District Court of Appeal addressed such a case, Grant v. Kune, involving a disagreement among several adult siblings of a deceased woman.

The mother lived in Pinellas County. As her health started to decline, however, she decided to live with her adult daughter, Jennifer, and her husband Geoffrey. Altogether, the mother had four children: Jennifer, Earl, Mark, and Joanne.

The mother’s estate planning attorney prepared a “personal services contract,” which provided that in exchange for living with her daughter and son-in-law, they would receive funds from her probate estate after her death. This contract was never signed, however, apparently because the mother signed a separate durable power of attorney naming Jennifer as her agent.

After the mother died, Jennifer requested $22,000 from her mother’s estate as compensation for services rendered. Earl and Mark were fine with this, but Joanne was not. The Florida probate court subsequently appointed Earl as personal representative of the estate. He sent notices to all of his mother’s ascertainable creditors, but not Jennifer and her husband, because he did not think they were “creditors” under the law.

Nevertheless, Jennifer did file a creditor claim for $129,000. Her husband filed his own claim for $27,639 for the costs he incurred in helping care for the mother. Joannes objected to these claims on the grounds they were not filed within 3 months of the notice of administration.

To make a long story short, the Second District held that Jennifer and Geoffrey were both “reasonably ascertainable” creditors of the estate and thus entitled to direct notice from the personal representative. Since Earl failed to provide that notice, they were both entitled to an extension of time to file their creditor claims. The appellate court therefore reversed part of the trial court’s ruling, which held that Geoffrey was not entitled to such an extension.

Contact a Pompano Beach Estate Litigation Attorney Today

Family members often find themselves in court dealing with a dispute over a loved one’s estate. If you are in this position and need legal advice from an experienced Pompano Beach estate and trust litigation lawyer, contact the offices of Mark R. Manceri, P.A., today to schedule a consultation.

Source:

2dca.flcourts.gov/content/download/2443258/opinion/Opinion_2023-1978.pdf