What happens to debts in an intestate estate?

In the state of California, when a person passes away without a will (Intestate Estate), their estate is divided in accordance with Intestate Succession Law. This Law states that any debts of the deceased must be settled before the estate is distributed. When a person dies intestate and leaves behind outstanding debts, their estate must take responsibility for the payments. To do this, estate administrators must contact all debtors. After all debts have been accounted for, then the assets of the estate can be distributed among the living heirs. In instances where there are insufficient funds to pay all of the debts, creditors must be paid in the following order: 1. Funeral expenses 2. Reasonable medical expenses of the last illness 3. Debts due to the Government (back taxes, child support etc.) 4. Property taxes 5. All other creditors In California, once all creditors have been paid in full, the remaining estate assets are divided among the legal heirs. The amount distributed to each heir is determined by the statutory scheme created by the State of California. Although the Intestate Succession Law is the same in all states, the details may differ slightly. It is always advisable to speak with a knowledgeable attorney about the estate in order to ensure that all debts are paid off prior to the distribution of the assets among the heirs.

Related FAQs

What rights does a creditor have when trying to collect an intestate estate?
What is intestate succession law?
Does an intestate estate automatically go to a surviving spouse?
How can an intestate estate be distributed if there is no will?
What is the difference between a will and an intestate estate?
Who can serve as the administrator of an intestate estate?
Can a deceased person's debts be discharged in an intestate estate?
How do property taxes affect an intestate succession?
Can creditors waive their rights to an intestate succession?
How is an intestate estate divided if there is no surviving spouse?

What happens to debts in an intestate estate?

Related FAQs

Related Blog Posts