Dealing with probate can feel stressful—especially when debts are involved. If you’re handling an estate in Oro Valley, Arizona, it’s important to understand how to manage debts correctly during the probate process.
1. Understand the Probate Process
Probate is a legal process that happens after someone passes away. It ensures that all debts are paid and the remaining assets are distributed to the heirs.
In Oro Valley, probate also helps protect both the family and the creditors by making sure all debts are handled properly.
2. Make a List of All Debts
Start by listing everything the person owed. Common debts include:
- Credit card balances
- Medical bills
- Mortgages
- Car loans
- Personal loans
Check mail, emails, and bank records to make sure you find all outstanding debts. This step helps you stay organized throughout the process.
3. Notify Creditors
Arizona law requires that creditors be notified when probate begins. You may need to send letters or publish a notice in a local Oro Valley newspaper.
This gives creditors a chance to file claims, and it ensures you’re following proper legal steps.
4. Follow the Order of Payments
Not all debts are treated equally. Arizona sets a specific order for paying debts:
- Funeral and burial costs
- Taxes owed to the state or IRS
- Secured debts, like mortgages
- Other debts (medical, credit cards, etc.)
Paying in this order helps you stay compliant and avoids potential legal issues.
5. Use Estate Funds Only
Never use your personal money to pay the deceased’s debts. Always use funds from the estate account.
Keeping estate money separate makes accounting simple and helps prevent confusion or disputes later.
6. Get Professional Support
Probate can be complicated, especially when property or large debts are involved. Working with a probate attorney and an experienced real estate agent can save time and reduce stress.
How a Local Realtor Can Help
If the estate includes property in Oro Valley, selling it may help settle debts and simplify probate.
Ryan Comstock, Realtor with eXp Realty, specializes in probate and estate real estate in the Oro Valley and Tucson areas. He can guide you through selling the home, handling paperwork, and managing estate needs with care.
📞 Phone: 520-261-4669
📧 Email: ryancomstock@ryancomstock.com
🌐 Website: www.ryancomstock.com