In my approximately 15 years practicing trusts and estates law, I've helped many families navigate probate and estate administration.
Creditor Claim Priority System
Florida Probate Code establishes eight classes of creditor claims (found in Chapter 733). While most estates have sufficient assets to pay all claims, occasionally we encounter estates with insufficient assets or significant claims.
Key Classes of Creditor Claims
Class 1: Administration Costs
- Court filing fees
- Appraisals
- Notice publications
- Attorney fees
- Personal representative compensation
Class 2: Funeral Expenses
Reasonable funeral, burial, and cremation expenses up to $6,000. Amounts exceeding $6,000 fall lower in priority.
Class 4: Medical Expenses
Medical expenses from the last 60 days of the decedent's final illness (hospital bills, doctor bills, diagnostics).
Class 6: Court-Ordered Child Support
Unpaid court-ordered child support.
Class 8: General Claims
Catchall category including unsecured credit lines, credit cards, store credit.
Payment Order
Claims are paid in numerical order (Class 1, then Class 2, etc.). If insufficient assets exist, lower-priority claims may not be paid in full or at all.
Exempt Assets
Some assets may be determined exempt from creditor claims:
Florida Homestead Property
Primary residence of someone domiciled in Florida, with acreage limitations:
- Inside municipality: Up to ½ acre
- Outside municipality: Up to 160 acres
Must be left to "heirs at law" under probate code (family relationships).
Personal Property
Up to $20,000 in household furnishings, appliances, and up to two automobiles (with weight limitations).
Revocable Trust Assets
Assets in trusts that were revocable until death are considered available to satisfy creditor claims. If probate estate has insufficient assets, the trust must make up the shortfall.
Example: $100,000 creditor claims with only $50,000 non-exempt probate assets, plus $1 million revocable trust = trust pays $50,000 shortfall to satisfy all creditors.
Learn more about living trust strategies and their implications.
