How to Identify Claims against the Probate Estate

The discovery and identification of claims against the decedent’s estate is of equal importance to the discovery and identification of estate principal. Notification of the decedent’s death is required by law, and valid claims must be identified within a prescribed period of time. The fiduciary must evaluate the validity of claims and place them in an order of priority for payment purposes. The order of priority varies from state to state; however, an example might be to observe the following order of priority:

1. Claims having a special lien against property, but not to exceed the value of the property.

2. Funeral and administrative expenses.

3. Taxes: income, estate, and inheritance.

4. Debts due the United States and various states.

5. Judgments of any court of competent jurisdiction.

6. Wages due domestic servants for a period of not more than one year prior to date of death and medical claims for the same period.

7. All other claims.