What Can We Learn From Aaron Carter? Lessons on Creditor Claims, Probate Rules, and Estate Planning

Aaron Carter, 2000’s pop star and brother of Backstreet Boy singer, Nick Carter, passed away in 2022 at the age of 34, leaving behind his son, Princeton Lyric Carter.

It was reported that the estate was “insolvent,” meaning that the estate is unable to pay its debts.

Tax Claims and Debts

• Initially, the State of California filed a creditor’s tax claim in April 2023 for $17,092.31.
  
• Two years later, this was amended to $87,106.69, with additional interest accruing until the payment date. (They Want It That Way, LOL!)
  
• The IRS also filed two creditor’s claims for $195,000 in back taxes owed.
  

Expected Assets

• The estate is expecting royalties.
  
• There are also a couple of wrongful death lawsuits filed against Carter’s dentist and doctor. (You can say, this is All He Has To Give.)
  

What Can We Learn From This Financially Challenged Pop-Singer’s Estate?

We can discuss whether a creditor can amend their claim once filed against a Florida estate.

Avid readers of this blog know all about:

• The 2-year creditor period from the decedent’s date of death.
  
• The ability to shorten that period to 90 days by publishing a notice to creditors.
  

But once a creditor files a timely claim, can they change the amount later?

Short Answer: Yes, and No

• While still within the creditor period, a creditor may amend their claim for any reason.
  
• But what about after the 90-day period?
  

Florida’s Legal Approach

In general, Florida courts have adopted a liberal approach to the amendment of claims in probate—if the amendments are meant to:

• Correct formal defects that do not affect the substantial rights of the parties.
  

What does that mean?

• If a claim is defective as to form, the probate court may allow a creditor to amend the claim at any time.
  
• However, if the amendment seeks to change matters of substance—like the nature or amount of the claim—it will not be allowed once the creditor period has ended.
  

Examples of Permissible vs. Impermissible Amendments

✅ Permissible:

• Adding specific statements to explain services rendered after the creditor period has expired.
  ➤ Considered form-related, not substance-related.
  

❌ Impermissible:

• A Medicaid claim for the wrong amount is not considered defective as to form.
  ➤ Cannot be amended once the period ends.
  

Final Takeaways

• After the creditor period is over, creditors cannot change the amount of their claim.
  
• It’s crucial to have an experienced probate attorney, especially one familiar with creditor claims.
  
• The rules are persnickety, and even a minor misstep could cause major issues in probate proceedings.