Priority of Claims in Coral Gables Probate

The personal representative, also known as the executor, of the estate in Florida is responsible for handling creditor claims. It is their responsibility to notify all creditors, review their claims, and settle or dispute them accordingly. However, when the amount in these claims exceeds the value of the estate, the distribution must be done according to a set priority.

The priority of claims in Coral Gables probate is regulated by the state’s Probate Code. If you are a personal representative, you need to know exactly how the order works, otherwise you could lose time and money during probate. Our local asset administration attorney is here to assist.

What Are Claims in Probate?

Probate claims are debts and unresolved financial obligations that the deceased person left behind. After the person’s death, creditors have the right to file a claim against the estate in order to receive the money.

When dealing with probate in Coral Gables, it is the personal representative’s responsibility to execute payments according to the priority of claims. However, they do not have to do it alone. Unless the personal representative is a sole heir of the estate, the law obligates them to hire an attorney for probate. 

Claim Settlement Priority

The priority of claims is strict, and the personal representative should consult with their Coral Gables attorney to determine what takes precedence:

• Estate administration costs: These include attorney fees, court costs, and other necessary expenses for settling the estate. They have to be paid first to make sure that the probate process can move forward.
• Funeral expenses: Costs for burial and memorial services come next in line. Florida law limits the amount that can be spent on funeral arrangements. This amount can change from year to year.
• Debts owed to the government: These include taxes and other debts owed to the federal and local government agencies. Common examples are income and property taxes or fines.
• Medical expenses: Bills for the deceased’s final illness (within 60 days before death) take priority after government debts. This allows healthcare providers to receive compensation for end-of-life care.
• Family allowance: Florida law allows a temporary financial allowance for surviving family members who depended on the deceased for support. The goal is to help them during the probate period.
• Child support: Any unpaid child support obligations owed by the deceased must be paid before general debts.
• Business debts: If the deceased person owned a business or had business-related liabilities, those debts have to be addressed after satisfying personal obligations.
• Other claims: General unsecured debts, such as credit card balances or personal loans, are last in line. If the estate lacks sufficient funds, these creditors may not receive full payment.

Not all claims brought forward by the creditors are valid. A personal representative and their attorney must review each one and dispute it if necessary.

Consult a Coral Gables Attorney About the Priority of Claims in Probate

If you are a personal representative of an estate in Coral Gables or elsewhere, you need to know how the priority of claims work during probate. Otherwise, you risk making legal mistakes.

A qualified estate planning attorney from Veliz & Associates, P.A. can help you manage creditor claims, determine the priority, and challenge their validity if needed. Call us to schedule a consultation today.