Friday, July 1, 2022

The Importance of Complying With Statutory Requirements When Providing Notice to Creditors

      

        Pursuant to A.R.S. § 14-3801, the personal representative of an estate must publish a notice to creditors once a week for three successive weeks in a newspaper of general circulation in the county announcing the appointment, the personal representative’s address, and notifying creditors of the estate to present their claims within four months after the date of the first publication of the notice or be forever barred.  In addition, a personal representative shall give written notice to all known creditors of the personal representative’s appointment.  The notice shall also notify all known creditors to present their claims within four months or be forever barred. 

        In BMO Harris Bank NA v. Espiau 1 CA-CV 20-0460, the Arizona Court of Appeals, Division One, held the statute requiring notice for claims against a decedent’s estate must be strictly complied with.  If a notice does not include all required information, including the deadline for presenting claims, the time limit does not begin to run.  This is true even if the recipient of an incomplete notice is a sophisticated and experienced bank.  

 

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