Notice to Creditors

A notice to creditors is an advertisement, usually published on the relevant Supreme Court's online notices portal or in an official gazette, that invites potential creditors and claimants to lodge their claims within a stated period (commonly a minimum of 30 days). Once that period passes, statutory provisions in each state's Trustee or Probate and Administration Act give the executor protection against personal liability for debts they had no notice of, so they can safely distribute the estate. It is a key safeguard when paying out estate liabilities and making estate distribution.

Publishing the notice is optional but strongly advised, especially where the deceased's affairs are not fully known. Example: "Before distributing, the executor published a notice to creditors and waited the required period, so when a forgotten credit-card debt surfaced later she was not personally liable." The form, publication channel and waiting period differ between the states and territories.