The statute of limitations on debt after death, which determines how long creditors have to file a claim against an estate, varies by state. In North Carolina, for example, executors must publish a newspaper notice to creditors once per week for four consecutive weeks, which starts the clock on a three-month statute of limitations. In California, the executor is required to mail a notice of administration to all known creditors, who then must file a claim within four months.
While discussions about death can be uncomfortable, discussing your financial situation with loved ones could help to alleviate concerns and to eliminate surprises. That can be especially important if you share debt with anyone, such as a cosigner. A financial advisor or an estate planning attorney can also provide valuable guidance in these complex matters.