Ø Claimant is required to deliver or mail to the personal representative a written statement of the claim indicating its basis, the name and address of the claimant and the amount claimant and/or
Ø File a written statement of claim with the appropriate court.
* Without filing a claim, a claimant may commence a proceeding against the personal representative in the appropriate court within the time limit set out in the law.
A Probate Court cannot accept a claim against an estate that has not been filed with that Probate Court.
Payment of Claims
Ø If the personal representative does not notify the creditor in writing of this determination within sixty (60) days after the time for the original presentation of the claim has expired, the claim is deemed a valid claim and is allowed.
Ø If a claim is disallowed, the creditor must file a petition for allowance in the District Court no later than sixty (60) days after the mailing of the notice of disallowance.
Probate Courts cannot (1) determine the validity of a claim against an estate; or, (2) direct the payment of any claims against an estate; or, (3) hold funds in escrow to pay creditors’ claims.
Priority of Claims
If an estate’s assets are insufficient to pay all claims against the estate, the law determines the priority for payment of creditors' claims. Claims must be paid in the following order:
First: Costs and expenses of administration of the estate; then,
Second: Reasonable funeral expenses of the decedent; then,
Third: Debts and taxes with preference under federal law; then,
Fourth: Reasonable medical and hospital expenses of the last illness of the decedent; then,
Fifth: Debts and taxes with preference under other laws of New Mexico; and then,
Sixth: All other claims.
* No preference in payment can be given to any claim over another claim in the same class.
* Claims that are due and payable are not entitled to preference over claims not yet due.
* If payment of higher priority claims exhausts all probate estate assets, creditors with lower priority for payment receive nothing. However, a creditor may seek recovery from assets that pass outside of probate, such as payable on death accounts or joint tenancy property, but only through a District Court proceeding.
FAMILY AND PERSONAL PROPERTY ALLOWANCES
New Mexico has two laws that exempt property of an estate from creditors' claims.
Family Allowance--A decedent's surviving spouse (or if no surviving spouse, the minor or dependent child or children of decedent) is entitled to a family allowance of $30,000.00 which is exempt from and has priority over all claims against the estate.
Personal Property Allowance--In addition to the family allowance, the decedent's spouse, or if no surviving spouse, children, are entitled to an allowance of $15,000.00 in personal property.
INVENTORIES AND ACCOUNTINGS
* A Personal Representative is required to prepare an Inventory of the assets of the estate within ninety (90) days of being appointed. The Personal Representative must also prepare an Accounting before closing the estate.
* The Personal Representative is not required to file the Inventory and Accounting with the Court, but must provide copies of these documents to interested persons who request them.
HELP?
Some procedures may require the services of an attorney. The Probate Court staff can provide information, but not legal services or forms that are not standard probate forms.
USEFUL PHONE NUMBERS, WEBSITES & E-MAIL ADDRESSES
Bernalillo County Probate Court
One Civic Plaza NW, 6th Floor
Albuquerque NM 87102
Telephone: (505) 468-1233 or (505) 468-1234
Fax: (505) 768-5180
www.bernco.gov/probate_judge/
Second Judicial District Court--Civil Division
P.O. Box 488
Albuquerque, NM 87103
Telephone: (505) 841-7451
Fax: (505) 841-7495
