Ohio’s Revised Code requires the executor named in a will to notify the named heirs and creditors when the will’s creator dies. As noted on the Ohio.gov website, executors must send written notices within six months of the death.
Unpaid creditors may file claims with the probate court to recover from the estate’s assets. Creditors that fail to submit documents within six months, however, lose their right to retrieve any unpaid balances left on the deceased’s accounts.
Debts that an estate’s assets may pay to resolve claims
Under Chapter 2117 of Ohio’s Revised Code, the estate’s assets may first pay for the deceased’s administrative and burial expenses. Outstanding taxes owed to the state or federal government may take priority before paying the deceased’s end-of-life medical bills.
Secured creditors such as a mortgage or car loan holder, may file claims for the remaining payments. An executor, for example, may use any money in the deceased’s bank accounts to pay off a home loan. When the estate does not have ample cash, however, an executor may sell the deceased’s home or other assets to cover the outstanding loan balances.
Claims filed by unsecured creditors
Unsecured creditors include credit card or personal loan issuers. As noted by Credit.com, unsecured creditors may file claims to recover from the estate. In cases where the estate does not have enough assets to pay the unsecured balances, the accounts may get “written off.”
The federal government typically discharges unpaid student loan balances after the borrower’s death. Joint accounts or loans with co-signers, however, may become the full responsibility of the surviving account owner. The assets left in the estate may go toward paying balances left on heirs with jointly owned accounts.