Texas Creditor Claims in Probate: Deadlines, Process, and Executor Duties

Notice to Creditors: Two Requirements

Texas requires the executor to notify creditors in two ways.

1. Publication Notice

Under Texas Estates Code § 308.051, the executor must, within one month after receiving letters, publish a Notice to Creditors in a newspaper of general circulation in the county where the letters were issued. If the decedent paid or owed taxes the comptroller administers, the notice also goes to the comptroller by a qualified delivery method. The notice must be published one time.

The published notice gives the date letters were issued and the address for claims, and it directs creditors to present their claims within the period prescribed by law. It does not set a deadline of its own.

Cost: Newspaper publication fees typically run $100–$300 depending on the county.

2. Direct Notice to Known Secured Creditors

Texas Estates Code § 308.053 requires the executor to send notice of the letters, by a qualified delivery method such as certified mail with return receipt, to each creditor the executor knows holds a claim secured by estate property. This notice must go out within two months after the executor receives letters.

3. Optional Notice to Unsecured Creditors

Texas Estates Code § 308.054 lets the executor, at any time before the estate is closed, send an unsecured creditor a notice by a qualified delivery method. The notice must state that the creditor must present the claim before the 121st day after receiving the notice or the claim is barred. This optional notice is the only step that puts a fixed deadline on an unsecured claim.

How Creditors File a Claim

Claims are typically delivered directly to the executor or filed with the probate court. Secured creditors must also record their lien separately to preserve their security interest in specific property.

The Executor's Duty: Evaluate and Decide Each Claim

Once a claim is received, the executor has a fiduciary duty to evaluate it carefully. Texas Estates Code § 355.051 gives the executor 30 days to allow or reject a claim after it is presented.

Questions to Ask for Every Claim

• Is the debt legitimate? Does the creditor have documentation?
• Is it the right amount? Are there payments already made, credits, or offsets?
• Is it barred? A claim is barred if the creditor received a § 308.054 notice and missed the 121-day window, or if limitations has run
• Is the statute of limitations still running? A debt that was already time-barred before the person died is not enforceable
• Does it survive death? Most debts do, but some personal service obligations do not

Allowing a Claim

If the executor determines a claim is valid, they formally allow it. The claim is then scheduled for payment according to Texas law's priority order.

Rejecting a Claim

If the executor believes a claim is invalid, inflated, or late, they may reject it. Under Texas Estates Code § 355.064, a creditor whose claim is rejected then has 90 days from the date of rejection to file a lawsuit to enforce the claim, or the claim is permanently barred.

Why Careful Evaluation Matters

Do not automatically allow every claim. Paying an inflated or fraudulent claim directly harms beneficiaries. Equally, do not reject valid claims out of hand; doing so can expose the executor to personal liability and litigation. When claims are large, complex, or disputed, consult a probate attorney before making a final decision.

Payment Priority: Who Gets Paid First

If the estate runs out of money before reaching a lower category, creditors in that category receive nothing (or a pro-rata share if there are multiple claims at the same priority level). Beneficiaries inherit whatever is left after all valid claims are paid. For typical Texas probate cost ranges including attorney fees and executor fees, see our Texas probate costs guide.

The Homestead Is Different

The homestead is specially protected. Even insolvent estates cannot force the sale of the homestead to pay most debts. The surviving spouse and minor children have the right to occupy it. See our Texas homestead exemption guide for details.

Family Allowance and Exempt Property

Before any creditors are paid (except funeral and last illness expenses), the court sets aside a family allowance to support the surviving spouse and minor children for one year (Texas Estates Code § 353.101) and exempt personal property for their benefit (Texas Estates Code § 353.051). These protections come before general creditor claims.

Secured vs. Unsecured Claims

Secured creditors (like mortgage lenders and car loan companies) have a lien on specific property. Their claim is secured by that collateral. If the estate does not pay, they can foreclose on the collateral. The executor generally needs to either continue paying secured debts, surrender the collateral, or refinance.

Unsecured creditors (credit cards, medical bills, utility bills) have no lien on specific property. They are paid from general estate funds after higher-priority claims. In many estates, especially where most assets pass outside of probate (through beneficiary designations, joint ownership, or a living trust), unsecured creditors may receive little or nothing.

Are Family Members Responsible for the Deceased's Debts?

Creditors sometimes call or write to family members trying to collect. Relatives have no legal obligation to pay debts that were solely in the deceased's name. If a creditor pressures you improperly, consult an attorney.

Executor Personal Liability

The best protection is to follow the process correctly: publish and send the required notices, resolve the claims that come in, pay in priority order, and distribute to beneficiaries last. Keep detailed records of every decision.

Protecting the Estate: Practical Steps

Verify every claim. Request supporting documentation (account statements, contracts, invoices) before allowing any claim.

Check for duplicate claims. Sometimes the same debt is submitted by both the original creditor and a collection agency. Verify you are not paying the same debt twice.

Don't rush distributions. Because an unsecured claim can arrive until the estate closes unless a § 308.054 notice cut it off, executors often send that notice to every known unsecured creditor and hold back enough to cover claims still open before making final distributions.

Document everything. Keep a written record of every claim received, your evaluation, and the basis for your decision to allow or reject.

Get legal help for complex situations. Large disputed claims, secured debts on property you are not sure what to do with, or creditors threatening suit: these situations call for a probate attorney.

Frequently Asked Questions

How long do creditors have to file claims against a Texas estate?

It depends on the creditor. Publishing the notice to creditors does not start a deadline. An unsecured creditor who receives the executor's optional notice under Texas Estates Code § 308.054 must present the claim before the 121st day after receiving it, or the claim is barred (§ 355.060). Any other claim may be presented until the estate is closed, unless the general statute of limitations has run (§ 355.001). Secured creditors have the later of 6 months after letters or 4 months after receiving the § 308.053 notice to say how their claim should be paid (§ 355.152).

Does the executor have to pay all debts before distributing assets?

Yes. The executor should resolve all valid claims before making final distributions to beneficiaries. Distributing assets before known claims are resolved creates personal liability risk for the executor.

What if the estate does not have enough money to pay all debts?

The executor pays claims according to Texas Estates Code § 355.102's priority order. Higher-priority claims (funeral expenses, family allowance, administration expenses) are paid first. Lower-priority unsecured creditors receive whatever is left, or nothing if the estate is insolvent. Beneficiaries receive nothing from an insolvent estate after the surviving spouse's and minor children's protections are applied.

Can an executor reject any claim?

Yes. The executor has discretion to reject claims that are invalid, inflated, or barred. A rejected creditor must file suit within 90 days after the rejection or the claim is barred (Texas Estates Code § 355.064).

Are medical bills a high priority?

No. In Texas, medical debts are unsecured claims, the lowest priority category. Funeral and last-illness expenses and the family allowance all come before general medical bills.