Personal representatives and executors of estates during formal probate administration are responsible for ensuring that the estate pays its debts and obligations. Understanding the rules involved in the payment of creditor claims is one of the key challenges a representative will have to deal with.
Priority of claims in Florida probate follows statutory requirements that may be difficult to understand without the support of an attorney. A probate attorney can help you and your family learn more about how state law applies to formal administration.
What Are the Duties of a Personal Representative?
Probate is a court-supervised process for identifying assets and debts of the decedent and then resolving liabilities and distributing the remaining assets. It is typically necessary to interpret a will and transfer property. A personal representative is an individual, bank, or trust company appointed by a probate judge in the jurisdiction to handle administration of the decedent’s estate. Once appointed, the personal representative has a legal obligation to administer the estate in accordance with state law.
The personal representative’s main responsibilities will include identifying and collecting the estate’s assets, and creating an inventory to establish the estate’s value. The personal representative will then follow Florida probate law to determine the order in which to pay debts and distribute the remaining assets.
State Law Controlling Estate Administration
Personal representatives must notify known or reasonably ascertainable creditors of the estate’s creation and allow them time to file claims. The creditors then have thirty to ninety days to file a claim with the clerk of court in the correct jurisdiction. The personal representative, through the estate, has one year to pay any valid and timely claims if sufficient assets exist.
The priority of claims under state law is described in Florida Statutes § 733.707, which requires personal representatives to pay claims in the following order:
- Costs and expenses of estate administration, including compensation for the personal representative and attorneys
- Funeral and burial expenses up to $6,000 total
- Debts owed to the government, such as taxes and court fees
- Reasonable and necessary medical expenses incurred by the decedent within the last sixty days of their most recent illness
- Family allowance to a surviving spouse and surviving children, if applicable
- Child support arrearages owed by the decedent at the time of death
- Business debts incurred by a decedent’s business after death, such as operational costs, payroll, taxes, and other financial responsibilities
- All other claims, such as those based on previous court judgments against a decedent
For those without a background in probate law, understanding the priority of creditor claims in Florida can be overwhelming. Personal representatives needing legal help can turn to a knowledgeable lawyer with a proven track record in overseeing estates and handling priority of claims issues.
Speak with a Florida Attorney About Priority of Claims in Probate
If you have been appointed as a personal representative or your family is involved with administering an estate, it can be difficult to know where to begin. Priority of claims in Florida probate is a key component of an estate’s administration, as state law requires the estate to pay valid creditor claims if possible. Contact The Florida Probate & Family Law Firm today to learn how an experienced attorney can help.