Probate Creditor Claims

The following is an overview of who gets priority when satisfying a decedent's debt during probate. 

1. Administration expenses—for obligations secured by a mortgage, deed of trust, or other lien, only the administration expenses that are reasonably related to the administration of the secured property are given priority (Prob C §11420(a)(1));

2. Obligations secured by a mortgage, deed of trust, or other lien, including a judgment lien, to the extent that they can be paid out of the property subject to the lien—if the property is insufficient, the unsatisfied obligation is a general debt (Prob C §11420(a)(2));

3. Funeral expenses (Prob C §11420(a)(3));

4. Expenses of last illness (Prob C §11420(a)(4));

5. Family allowance (Prob C §11420(a)(5));

6. Wage claims (Prob C §11420(a)(6)); and

7. General debts (Prob C §11420(a)(7)).