Creditors’ rights

S.E.A. 247, P.L. 163
Effective: July 1, 2018

Makes various changes to probate and trust law relating to creditors’ claims, claims against non-probate transferees, and no contest provisions in wills and trusts. Defines “no contest provision”. Provides that a no contest provision is enforceable, except under certain circumstances. Provides that the estate recovery unit of the office of Medicaid policy and planning is a reasonably ascertainable creditor if the decedent was at least 55 years of age at the time of death. Extends the time period for county clerks to issue letters testamentary or of administration from five months to seven months. Allows for the deduction of liens, encumbrances, and reasonable funeral expenses from the estate value for purposes of determining whether the estate assets are worth more or less than the threshold value of $50,000. Provides an exception for a county clerk’s delay in issuing letters testamentary or letters of administration that is not caused by the fault of the petitioner. Makes conforming changes.

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