Priority of claims Flashcards
Class 1 claims
related to the expenses of estate administration, personal reps and attorneys
Class 2 claims
expenses of decedent’s funeral and grave marker, not to exceed $6,000 (if funeral expenses are higher, the rest would be considered class 8 claims)
Class 3 claims
debts and taxes that have preference under federal law and certain other claims such as those for recoupment of Medicaid benefits
Class 4 claims
medical/hospital expenses related to the last 60 days of decedent’s illness
Class 5 claims
family allowance authorized in Fla. Stat. § 732.403 to maintain certain family members during the estate’s administration (capped at $18,000)
Class 6 claims
any court-ordered child support arrearages
Class 7 claims
business debts incurred during administration (not to exceed the amount of business assets)
Class 8 claims
all other claims
What if the estate is insufficient to satisfy all claims?
Fla. Stat. 733.707(2) – if estate is insufficient, pro rata share to everyone
Fla. Stat. 733.607(2) – if estate is insufficient, PR can be paid out of a revocable trust