WHAT CREDITORS HAVE PRIORITY IN A FLORIDA PROBATE?
This guide discusses which creditors have priority in a probate proceeding.
Probate and CreditorsGoing through probate is a tough enough time without having to worry about creditors. Unfortunately, creditors of an estate are something that must be dealt with during probate, which is why knowing the priority of creditors is very important. Often, client*s will come in with the decedent*s large credit card debt and would like to know how to pay it off and what assets can go towards the payment. To answer that you need an experienced probate attorney to determine which creditors must be paid first out of any available assets, as credit card debt is not a top class. When examining what is the order of priority when addressing the payments of a claim Florida probate attorneys will turn to Florida Probate Code Section 733.707
Classes of Creditors* Class 1: Administrative costs and fees. This includes compensation for the Personal Representative and the fees for the Estate (Probate) Attorney.
* Class 2: Reasonable funeral, internment, and grave expenses up to $6,000.00.
* Class 3: Debts and Taxes with preference under Federal Law, including estate taxes and recovery of Medicaid and public assistance payments.
* Class 4: Reasonable and necessary medical and hospital expenses of last 60-days of the decedent*s last illness.
* Class 5: Family Allowance (the family allowance maximum is currently at $18,000.00 for payment of support of surviving spouse and dependents during the Florida estate administration).
* Class 6: Court ordered child support arrearage.
* Class 7: Debts that are acquired after death by continuing the decedent*s business.
* Class 8: All other claims, including any judgments against the decedent and any excess on items in Class 2 and Class 4.