How Long Does an Executor Have to Settle an Estate in New Mexico?

When someone you love passes away, it becomes time to settle their estate, which is a key responsibility of the executor. This is typically someone designated in this role by the individual who passed on. When it’s time, the executor will need to gather assets, pay any debts, and distribute the remaining property to all designated beneficiaries. The question remains: how long does an executor have to settle an estate in New Mexico?

The answer to this question depends on a number of different factors, such as how complicated the individual’s estate is, if any disputes arise amongst beneficiaries, and what other circumstances need to be dealt with to remain compliant with New Mexico’s probate laws. In this state, there isn’t a strict deadline for settling an estate. However, there’s an expectation for all executors to fulfill their legal duties by working with an Albuquerque estate planning lawyer.

Some of the most common factors that affect the timeline for settling an estate include:

Estate Complexity

The complexity of someone’s estate is one of the more significant factors that will influence how long it takes to close it. A complicated estate is typically defined as one that has multiple types of assets to deal with, like real estate properties, stocks, and retirement accounts. All of these items need time to be properly valued so everyone knows how much each item is worth. This will guide the debt-paying and distribution process for the remaining items.

Debt Resolution

All executors are legally required to let creditors know when the estate owner has passed so they have an opportunity to file claims against the estate. This is a step that cannot be ignored, as any outstanding debt that the deceased still owed will need to be resolved before the estate is distributed to any beneficiaries. New Mexico law states that all creditors have four months after receiving a notice that someone has passed to respond with their collection claims.

This step can be complicated by scenarios where they may want to dispute the validity of certain debts or need more time to negotiate with the creditor to settle the deceased’s accounts. This step can also be drawn out in instances where the deceased’s estate doesn’t have enough liquid assets to cover the debt they owe. When this happens, it’s up to the executor to sell other assets within the estate to generate these funds. All of this can add extra time and effort to the process.

Probate Court Delays

The more involvement that is needed from the probate court, the more it can impact the timeline. This is especially true if it’s required for the estate to go through the formal probate process. The probate timeline is typically quicker in cases where the deceased left behind a valid will and there are no disputes raised among any of the beneficiaries. Even when a case is uncontested, the court’s schedule and caseload can create even more delays in dealing with it.

Disputes or Litigation

Sometimes, disputes among heirs or challenges to the validity of a will can make an estate take even longer to settle. For example, in some cases, a beneficiary believes they were purposely or unfairly excluded from the will or does not believe that the executor is distributing the remaining assets in the proper manner.

When this happens, it can lead to drawn-out court proceedings, which makes the process take even longer. This is why executors must always be prepared for the possibility of delays that are out of their control.

FAQs

Q: What Is the Statute of Limitations for Probate in New Mexico?

A: New Mexico law states that individuals have three years from the date of someone’s death to initiate probate. If this deadline is missed, the only option is for the estate to be settled through a more limited process called “small estate affidavit.” Exceptions can sometimes be made if there is evidence to suggest that the deceased’s assets were discovered later on or if it took longer than expected to locate their heirs or beneficiaries.

Q: Do All Estates Have to Go Through Probate in New Mexico?

A: Not all estates are required to go through probate in New Mexico. Smaller estates with minimal assets and debts could allow for a simple asset transfer without the formal probate process. Also, any assets that are jointly owned with rights of survivorship or that have designated beneficiaries, like life insurance policies and retirement accounts, can also bypass the probate process. Consult with an attorney to learn what options exist to avoid probate.

Q: Do All Heirs Have to Agree to Sell Property in New Mexico?

A: In New Mexico, all heirs are typically required to agree to sell property that is part of the deceased’s estate. This is especially the case when the property is jointly owned or is being subjected to inheritance rights. If this becomes disputed, the executor may need to seek the court’s approval to proceed with selling the property. At this point, they will need to present evidence that the sale is in the interest of the estate, such as to satisfy outstanding debts.

Q: How Long Does the Executor Have to Pay the Beneficiaries in New Mexico?

A: In New Mexico, it is expected that an executor will settle an estate in a reasonable timeframe based on the specifics of the case, such as if there are any disputes to deal with, creditor claims to manage, or tax issues. If an executor prematurely distributes assets before debts are settled, this could subject them to liability down the road.

Contact Gilchrist Law Firm, P.C., Today

If someone you know has passed away, and you are their designated executor, it can be valuable to hire an estate planning attorney to ensure you remain compliant with New Mexico law throughout the entire process. Contact our firm today to learn more about how we can step in to ensure the estate you must manage is executed as efficiently as possible.