Probate Glossary
Estate Debt
Money owed by the deceased person or estate.
Definition
Estate debt includes valid obligations such as bills, loans, taxes, medical expenses, funeral expenses, credit accounts, and creditor claims that may need to be paid from estate assets.
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Frequently Asked Questions
When can beneficiaries receive distributions?
Beneficiaries typically receive distributions after estate assets are identified, valid debts and expenses are handled, required notices or court steps are completed, and the Personal Representative is ready to distribute safely.
What is a creditor claim in probate?
A creditor claim is a request for payment from someone who says the deceased person or estate owes them money. The Personal Representative must determine how claims should be handled under applicable law.
Do creditors get paid before beneficiaries?
In many probate estates, valid debts, expenses, taxes, and creditor claims must be handled before beneficiaries receive final distributions. Exact payment priority depends on state law and the type of claim.
What is Notice to Creditors?
Notice to Creditors is a notice process that alerts creditors that an estate has been opened and gives them a deadline to submit claims. The process and deadline vary by state.
What is a priority claim?
A priority claim is a debt or expense that may have a higher legal priority for payment from estate assets. Examples may include administration expenses, funeral expenses, taxes, or other protected claims depending on state law.