When a law firm has an outstanding fee claim against a client who dies, the firm must navigate the same probate claims process as any other creditor. The Mississippi Supreme Court's decision in In re Estate of Ivison illustrates both the procedural requirements and the pitfalls that can arise when a creditor's claim against an estate is challenged — and when the creditor seeks to amend the terms of that claim after it has been probated.^[1]

Factual Background

Herbert Bernard Ivison, Jr. died with substantial assets, including several income-generating businesses, but little liquid cash. The Malouf & Malouf law firm had represented Ivison in a divorce action under a retainer agreement that provided for a service charge of one and one-half percent per month on any bill not paid within thirty days. The firm timely probated its claim against the estate for unpaid legal fees.

The estate's administration became contentious. Rebecca Ivison offered to purchase the estate's assets with the intent to pay off the timely probated claims in exchange for the assets. The question of the law firm's claim — and whether it could be amended to include additional interest or modified terms after the initial probate — became a central dispute.

The Probate Claims Process in Mississippi

Mississippi law establishes a structured process for creditors to assert claims against a decedent's estate. Under Mississippi Code Annotated Section 91-7-145, a creditor must file a claim with the clerk of the chancery court and have it "probated" — that is, registered and allowed — within the time prescribed by the statute. The executor or administrator is required to publish notice to creditors, and creditors generally have ninety days from the first publication of the notice to file their claims.^[2]

A claim that is not timely probated is barred. This deadline is strictly enforced, and the consequences of missing it are severe: the creditor loses the right to participate in the distribution of estate assets entirely. For law firms and other professional service providers with outstanding accounts receivable, monitoring obituaries and probate filings for deceased clients is an essential part of accounts receivable management.

The Court's Analysis

The Mississippi Supreme Court addressed whether the law firm's probated claim could be amended to include modified interest terms after the initial filing. The court drew a distinction between amendments that merely correct or clarify the original claim and amendments that materially change its terms. An amendment that alters the interest rate, extends the period for which interest is claimed, or otherwise increases the amount of the claim beyond what was originally probated is, in effect, a new claim — and if the deadline for probating claims has passed, that new claim is time-barred.^[3]

At the same time, the court recognized that the law firm had no obligation to pursue additional legal action to secure payment of a claim that had been timely probated. Once a claim is properly filed and allowed, the creditor is entitled to payment in accordance with the statutory priority scheme. The firm was not required to file a separate lawsuit or take other affirmative steps to enforce its probated claim.

Practical Lessons for Creditors

The Ivison decision offers several practical lessons for creditors — particularly professional service providers — who may need to assert claims against a client's estate.

First, file the initial claim with precision. The claim should include all amounts owed, including accrued interest calculated through the date of filing, and should clearly state the contractual basis for any interest charges. If the engagement agreement provides for a specific interest rate on unpaid balances, the probated claim should reference that agreement and include the interest calculation.

Second, do not rely on the ability to amend the claim later. While ministerial corrections may be permitted, any substantive change to the claim's amount or terms risks being treated as a new, untimely claim. The safest approach is to get it right the first time.

Third, monitor the estate administration process. A timely probated claim does not guarantee payment — it guarantees only a place in line. If the estate is insolvent, creditors are paid according to the statutory priority scheme, and general unsecured creditors may receive only a fraction of their claims. Creditors should monitor the administration to ensure the estate is being properly managed and that assets are not being dissipated or distributed to beneficiaries ahead of creditor claims.^[4]

Fourth, consider the timing and cost of the claim. For smaller claims, the cost of probating and monitoring the claim may approach or exceed the amount owed. For larger claims — particularly those involving professional fees in complex matters — the investment in proper claims administration is well worth the effort.