What are the priorities in paying off an estate’s debts?

UPDATED: Sep 18, 2011

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Sep 18, 2011Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

What are the priorities in paying off an estate’s debts?

The estate has little money but many creditors – landlord, utilities, bank loans, etc. How much can the estate’s executor charge on an hourly basis? The estate’s total value is under $10,000 and it will all go to creditors.

Asked on September 18, 2011 under Estate Planning, Colorado


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

When the final inventory is filed with the court setting forth its assets with respect to its liabilities, the attorney representing it will file a petition with it asking the court to issue an order as to how the approved creditor's claims as well as attorney's fees and costs concerning the probate's administration will be paid.

In most situations like the one you have described where there are not enough assets to pay the estate's liabilities, the court will pro-rate the estate's assets amongst the approved creditor claims and the attorneys fees and costs concerning estate's administration. In essence, the creditors will receive so many cents on the dollar on their approved claims by the estate's executor.

Good question.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption