In probate, what happens if the available assets are insufficient to pay off all claims?
During a probate process, the personal representative of the estate has to distribute the assets of the decedent according to classes specified by the Florida Probate Code. First, the Class 1 expenses are paid off: the costs of probate administration, the compensation of the personal representative and his/her attorneys, etc. Class 2 expenses – funeral, internment, and grave marker costs – follow, with debts and taxes as Class 3. Final-illness medical expenses constitute Class 4, family allowance makes up Class 5, and other costs comprise the final classes.
When there are not enough assets in an estate to pay each class of expenses in full, the assets received by each class must be abated. The order for abatement of assets received is presented in the Florida Probate Code.
If you have questions about the consequences of a potentially insufficient estate, you should consult with an attorney experienced in trusts & estates. The attorneys at Bach, Jacobs & Byrne, P.A. are seasoned probate and estate attorneys who can advise you about your options. Call (941) 906-1231 to set up an appointment.