Related Definitions
What is a Creditor?
Individuals or entities owed money by the deceased or their estate.
Individuals or entities to whom money is owed by the deceased person (debtor) at the time of their death. In probate proceedings, creditors must be notified of the death and given an opportunity to make claims against the decedent’s estate for outstanding debts. The estate must settle these debts before distributing assets to beneficiaries or heirs, ensuring that all financial obligations are addressed.
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