How do creditors get paid in an intestate estate?

In an intestate estate in Utah, creditors are paid out of personal property of the deceased before any assets are distributed to family members. Creditors must submit a claim of debt to the court within six months of the death, or the debt is considered invalid. All valid claims of debt must be paid before the estate is distributed to the heirs. To pay the creditors, the court appoints an administrator to collect the deceased’s assets, pay all valid debts, and pay the estate taxes and funeral expenses. The administrator is responsible for selling any real property owned by the deceased, and liquidating any liquid assets such as bank accounts. All claims of debt must be addressed before the estate can be distributed to the heirs. If there are not enough assets in the estate to cover all valid debt claims, the debts must be paid in the following order: funeral expenses, costs of administering the estate, and then all other debts in order of priority. If there are still not enough funds to pay off all claims of debt, the debts will be paid on a pro-rata basis, meaning that each creditor will receive a proportional amount of what they are owed based on the amount of funds available.

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How do creditors get paid in an intestate estate?

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