By Melinda Merk, JD, LLM, CFP®, AEP®
Principal at McCandlish Lillard, PC and member of the Virginia Bar Association Wills, Trusts & Estates Section Legislative Committee
Virginia law has long provided personal representatives with a mechanism to limit liability for unknown or disputed creditor claims arising prior to the decedent’s death through the two-step Debts and Demands and Show Cause hearing process as set forth in Virginia Code §§ 64.2-550 and 64.2-556. While effective, the process is frequently time-consuming, costly, and heavily dependent on court and commissioner of accounts involvement, even in routine estate administrations.
With the enactment of new Virginia Code § 64.2-508.1, effective July 1, 2026, the General Assembly has provided personal representatives with an optional, non-judicial alternative to the Debts and Demands/Show Cause process. This new Notice to Creditors statute allows a personal representative to require creditors holding claims arising prior to the decedent’s death to timely present those claims to the personal representative, while substantially limiting fiduciary exposure for claims presented after the statutory deadline to the extent that estate assets have been distributed to the beneficiaries.
The statute does not repeal or replace the existing Debts and Demands/Show Cause framework. Instead, it offers practitioners a streamlined option that may be well-suited for estates where creditor issues can be addressed efficiently without court supervision, particularly if a corporate or other professional fiduciary or unrelated individual is serving as personal representative who may not have personally known the decedent and/or have complete information with regard to potential creditors or other liabilities of the decedent.
The bill also amends Virginia Code §§ 64.2-550 and 64.2-556to clarify that these new notice provisions apply to claims filed with commissioners of accounts and to reinforce that a personal representative who follows these new procedures in good faith will not be liable for claims not timely presented.
A Streamlined Alternative to Debts and Demands/Show Cause Hearing Process
The Notice to Creditors statute creates a front-loaded notice and claim-presentation procedure that can be initiated earlier in the estate administration process. Unlike the Debts and Demands/Show Cause procedure, the new statute does not require court hearings or commissioner of accounts adjudication in order to obtain liability protection for the personal representative after making distribution of estate assets to the beneficiaries.
In exchange for strict compliance with publication, direct notice, and filing requirements—and for acting in good faith—the personal representative receives statutory protection from late-presented pre-death creditor claims.
Who May Elect This Alternative Procedure
Upon qualification, any personal representative of a decedent’s estate—testate or intestate—may elect to use the Notice to Creditors process instead of, or prior to initiating, Debts and Demands and Show Cause proceedings. The statute is entirely optional, and the traditional process remains available where creditor disputes, complexity, or litigation risk warrant judicial oversight.
Claims Subject to the Notice to Creditors Process
For purposes of Virginia Code § 64.2-508.1, the term “claim” or “claims” means all claims against a decedent’s estate that arose before the death of the decedent, whether absolute or contingent, liquidated or unliquidated, secured or unsecured, and founded on contract, tort, or other legal basis.
The statute does not apply to claims of the United States or tax claims of the Commonwealth of Virginia or its political subdivisions; contingent claims based on warranties made in connection with real estate conveyances; mortgages, security interests, or other liens existing at the date of death; or claims of heirs or devisees in their capacity as such.
Publication/Notice Requirements
Under the new Notice to Creditors statute, the personal representative must publish a notice to creditors once a week for two consecutive weeks in a newspaper of general circulation in the jurisdiction of qualification, in compliance with Virginia Code § 8.01‑324.
In addition to publication, the personal representative must personally deliver or send by first‑class mail a copy of the notice to creditors with disputed claims that are actually known or reasonably ascertainable through diligent inquiry.
Required Contents of the Notice
- The decedent’s name and date of death;
- The personal representative’s name, address, and telephone number;
- The mailing address of the clerk of the court for the jurisdiction in which the personal representative qualified;
- The applicable deadline for presenting claims, defined as (i) at least six months from the date of the first publication of the notice or (ii) 90 days after the personal representative mails or otherwise delivers a copy of the notice as published to the claimant; and
- A statement that, unless a claim is timely presented to the personal representative in the manner specified in this section, the liability of the personal representative or his surety for such claim shall not exceed the assets of the decedent remaining in the possession of the personal representative and available for application to the claim pursuant to § 64.2-528 at the time a demand for payment of such claim is presented to the personal representative.
Proof of Notice and Filing Requirements
Within 30 days after completing publication and direct notice, the personal representative must record an affidavit with the clerk of court and provide a copy to the commissioner of accounts, if applicable.
Presentation of Claims
A claim must be in writing and state the amount or item claimed or other relief sought, the basis for the claim, and the name and address of the claimant; and must be presented by one of the following methods:
- By delivery in person or by mailing, registered or certified mail, return receipt requested, to the personal representative. Such claim will be deemed to have been presented at the time of delivery in person to the personal representative or agent for the personal representative, or when the return receipt is signed by the personal representative or agent for the personal representative, or is refused by the personal representative or agent for the personal representative.
- By filing the claim with the commissioner of accounts pursuant to § 64.2-552. Such claim will be deemed to have been presented to the personal representative on the date of filing with the commissioner of accounts.
Effect on Personal Representative Liability
For claims not timely presented, a personal representative who has complied in good faith with the statute is liable only to the extent of estate assets remaining and available for payment at the time the claim is later asserted.
Continued Liability of Beneficiaries and Heirs After Distribution
Although Virginia Code § 64.2-508.1 significantly limits the liability of a personal representative for untimely presented pre-death creditor claims, the statute does not extinguish the underlying liability of the estate or its recipients. Instead, consistent with relief from liability afforded to a personal representative under the current Debts and Demands/Show Cause process, the risk of unpaid creditor claims shifts from the personal representative to the beneficiaries or heirs once estate assets are distributed.
Specifically, every legatee or distributee to whom any payment or delivery is made from the decedent’s estate, and his representatives, may, in a suit brought against him within five years after such payment or delivery is made, be adjudged to refund a due proportion of any claims enforceable against the decedent or his estate that have been finally allowed by the commissioner of accounts or the court, or that were not presented to the commissioner of accounts, and the costs of the recovery of such claim.
Conclusion
The new Notice to Creditors statute offers Virginia practitioners a practical and cost‑effective alternative to traditional Debts and Demands/Show Cause process and should be considered early in estate administration when limiting fiduciary exposure is a priority.
