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1 Information & Instructions: Notice to creditors 1. The following forms notify creditors of the Estate of the death of decedent, and that all claims must be filed with the executor within a certain prescribed time period in order to be honored by the Estate. 2. See Texas Probate Code Sections for statutory authority applicable to claims against decedents and wards. 3. See Texas Probate Code Sections 295 for the requirements of giving notice to holders of claims against the decedent's Estate. 4. Procedure a. A letter should be sent to the publisher of the court paper or newspaper in the county in which the administration has been opened. b. The letter should request the publisher to publish the notice to all persons having claims against the Estate of the deceased. c. Upon publishing of the required notice, the publisher should execute the publisher's affidavit, which states that the notice was published during the time period required by law. d. The proof of service form states that the executor notified creditors of the decedent's death; it should be signed by the executor and filed with the court. e. A letter should be sent to each secured creditor, by certified mail, return receipt requested, advising the creditor of the decedent's death.

2 Information & Instructions: Statutory review of presentment and payment of claims 1. Texas Probate Code Section 294(a) provides for a notice to be given to the comptroller's office within one month after receiving letters, if the decedent remitted or should have remitted taxes administered by the comptroller of public accounts. 2. The personal representative should also publish a notice in a newspaper in the county where the letters were issued. 3. The notice requires all persons having claims against the Estate being administered to present their claim to the personal representative within the time period prescribed by law. 4. The notice should state the time of issuance of the letters held by the representative together with the representative's address and post office. 5. A copy of the notice together with the affidavit of publisher duly sworn to and subscribed shall be filed with the court for causes pending. 6. Texas Probate Code Section 295 provides that within four months after receiving letters, representatives shall give notice of the issuance of the letters to each and every person having a claim for money against the Estate if the claim is secured by a deed of trust, mortgage, vender's, mechanics', or other lien on real Estate and if the instrument creating the lien was duly perfected prior to the death of the testator. 7. The notice THIS shall be given DOCUMENT by mailing a registered letter, return receipt requested, addressed to each record holder of the indebtedness or claim at the last known post office address. 8. A copy of the notice, along with the return receipt and affidavit of the representative stating that the notice was mailed as required by law, giving the name of the person to whom the notice was mailed, if not shown on the notice of receipt, shall be filed in the court from which the letters were issued. 9. Texas Probate Code Section 297 provides that if the representative fails to give the required notices, the representative and the sureties may be liable for any damage which any person suffers by reason of neglect unless it appears that the person had notice otherwise. 10. Texas Probate Code Section 298 provides that all claims for money against a testate or intestate shall be presented to the executor within six months after the original grant of letters testamentary or administration. 11. Otherwise, the payment of those claims shall be postponed until the claims which have been presented within six months and allowed by the executor have been approved the court and paid.

3 12. However, the failure of a holder of a secured claim to present a claim within the sixmonth period shall not cause that claim to be postponed but it shall be treated as a claim to be paid in accordance with the probate code. 13. Claims may be presented to the guardian at any time when the Estate is not closed or when suit on the claims has not been barred by the general statute of limitations. 14. No claims against a decedent or Estate in which a suit is barred by general statute of limitations applicable to that claim shall be allowed by the personal representative. 15. Texas Probate Code Section 299 provides that the general statutes of limitation are tolled by filing a claim which is legally allowed and approved or by bringing a suit upon a rejected and disapproved claims within ninety days after the rejection or dismissal of the claim. 16. Texas Probate Code Section 390 provides that claims for funeral expenses and last illness shall be presented within sixty days after the original grant of letters testamentary or administration. If not presented in that time, the exempt property set apart to the widow and children and any allowance made to them under the provisions of this code shall no longer be liable for the payment of the funeral and last illness expenses. 17. Probate Code Section 320(a)(1) has increased the amount of Estate funds that are to be used for funeral expenses and expenses of the decedent s last illness, before paying any other claims, from $5,000 to $15, Texas Probate THIS Code Section DOCUMENT 301 provides that the court shall not approve a claim for money against an Estate unless the claim is supported by an affidavit that the claim is just and all legal offsets, payments and credits known to the Affiant have been allowed. 19. If the claim is not founded on a written instrument or account, the affidavit shall also state the facts upon which the claim is founded. A photocopy of the exhibit may be offered and attached to the claim in lieu of the original. 20. Texas Probate Code Section 302 provides that any defect in the claim shall be deemed waived by the personal representative unless an objection is filed within thirty days after presentment of the claim and filed with the county clerk. 21. Texas Probate Code Section 306 details the method for handling secured claims and the rights and duties of secured claim holders regarding the filing and payment of secured claims. 22. Texas Probate Code Section 308 allows the claims to be deposited with the clerk of the court and that in the event the representative fails to act on the claim within thirty days after the date it is filed, it is presumed to be rejected. 23. Texas Probate Code Section 312 provides for a contest of claims, sanctioned by the court and appeals thereon.

4 24. Texas Probate Code Section 313 details the statutory authority regarding the right to file a suit on a rejected claim within ninety days after the rejection of the claim shall be barred. 25. Texas Probate Code Section 320 provides for the order of the payment of claims. 26. Texas Probate Code Section 320(a) provides the following classes of claims priority. Funeral and last illness expenses are first, not to exceed $2,000 if they have been presented within sixty days from the original grant of letters testamentary. If not, they should be postponed until the allowance is made to the widow or children. Second, a family allowance. Third, expenses of administration and expenses incurred in preservation, safekeeping and management of the Estate. Fourth, all other claims. 27. Texas Probate Code Section 320(b) provides for the Estates of the wards. 28. Texas Probate Code Section 322 provides for a classification of claims against the Estate of the decedent. The classes are as follows: a. Class one claims are for funeral and last illness expense. b. Class two claims are expenses of administration. c. Class three claims are those secured by mortgage or other liens. d. Class four claims are those claims for principal, interest on delinquent child support and child support arrearages that have been confirmed and reduced to a money judgment. e. Class five claims are for taxes, penalties and interest due. f. Class six claims are for cost of confinement established by the institutional division of the Texas Department of Criminal Justice. g. Class seven claims are for repayment of medical assistance payments made by the state under Chapter 32 of the Human Resources Code to or for the benefit of the decedent. h. Class eight encompasses all other claims. Information & Instructions: Notification letter to creditors of death of decedent 1. This letter may be used to notify creditors of the decedent's death.

5 Form: Notification letter to creditor's of death of decedent [Name and address] Dear [name of creditor]: [Date] I have been informed that you were indebted to the above named decedent. The current amount owed by you is $. Notice is hereby given to you that all future payments with respect to the debt are to be made payable to and mailed as follows: [specify manner of payment]. If you have any questions, please contact me at the above address. Very truly yours [Attorney s Name]

6 Form: Notice to all persons having claims against an Estate NO. IN THE ESTATE OF IN THE [PROBATE] COURT [NAME], DECEASED NO; [NAME], COUNTY, TEXAS NOTICE TO ALL PERSONS HAVING CLAIMS AGAINST THE ESTATE OF, DECEASED Notice is hereby given that original Letters Testamentary for the Estate of [name of decedent], were issued on [Date], in Cause No., pending in the Court of County, Texas, to: [name of executor]. Claims should be sent to: [The applicant : The residence of the Executor is County, Texas. The post office address is:.] Or [The Attorney for the Estate: Claims should be presented in care of the attorney for the Estate whose address is ] All persons having claims against this Estate which is currently being administered are required to present them within the time and in the manner prescribed by law. Dated. Respectfully Submitted, [Law Firm Name] By

7 [Attorney s Name] Attorney for Applicant [Attorney s Address] [Telephone Number] [Facsimile Number] [Bar Card Number]

8 Form: Notice to all persons having claims against an Estate NO. IN THE ESTATE OF IN THE [PROBATE] COURT [NAME], DECEASED NO; [NAME], COUNTY, TEXAS NOTICE TO SECURED AND GENERAL CREDITORS. You are hereby given notice that on [Executor s name] was appointed independent executor to the Estate of [name] in the probate court no. cause number The letters of testimony were issued on to [Executor s name]. It appears that you may have a claim for money against the above Estate as a result of the following: 1. You may hold a secured claims supported by deed of insurance, mortgage, vendors, mechanics or contractors lawn upon real estate of this Estate or 2. You may hold an outstanding claim for money against this Estate as a result of some information within the personal representative possession. Notice is given that you are to present your claim with the time. and in the manner allowed by law. Date [Executor s name]

9 Form: Proof of service of notice of general creditors PROOF OF SERVICE OF NOTICE OF GENERAL CREDITORS NO. IN THE ESTATE OF IN THE [PROBATE] COURT [NAME], NO; DECEASED State of Texas County of [NAME], COUNTY, TEXAS Before me the undersigned authority on this day personally appeared, name, title [ i. e. the executor of the Estate of. ]. Which is identified as the cause number in the docket of, court no. County, Texas. Known to me to be both personally and as such representative been duly sworn on his or her oath stated that he/she is the such person and the representative and that attached here is a copy of the notice that was sent to the creditors pursuant to the Texas probate code, mailed by registered letter, return receipt THIS request and addressed DOCUMENT to the names in Exhibit A hereto a record holder of an indebtedness of a claim referred to in such notice that his/her or its last known post office address as stated in Exhibit A here to. And that such mailing was required by law that the return receipt affidavit, return receipt return to a client after such mailing is also attached to exhibit A and that this affidavit and such attached copy of notice and return receipt will be forthwith filed with the court the letters of testimony were issued in such proceeding to a client that a clients name sworn to and subscribed before me by the sad name on. State of Texas County of Subscribed and sworn to before me on by. Signature of officer Notary's typed or printed name

10 My commission expires: [or Notary's Stamp]