Monday, January 7, 2013

Creditor's Claim in Jackson Estate

TMZ is reporting that Michael Jackson's personal assistant is filing a creditor's, claim against the Jackson estate, three years after the singer's death.

In Minnesota, under Minnesota Statute 524.3-803, most creditors' claims are barred, meaning that the creditor is out of luck regardless of how good the claim is, up to one year after the death of the debtor and in many cases earlier.

Seemingly a catch under Minnesota Statute 524.3-104 , is that creditors' claim can not be brought until a personal representative is appointed. That leaves a small or, in some cases, non-existent window to bring a claim. So what's a responsible creditor in Minnesota to do? A creditor can petition the court to open the probate 45 days after the death of the debtor and be named or request another party to be named as a personal representative, under Minnesota Statute 524.3-203. This can be a viable option in extreme cases. In any case, hoping to get paid back three years after the death isn't the best idea, in Minnesota or anywhere else.

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