After all Assets have been collected, it's time to pay outstanding debts from the Estate Account.

Don't pay every bill as it arrives; some debt is more of a priority than others, and paying them in a specific order can help avoid potential tax liabilities.

It's best to prioritize payments in the following order:

• Administration -- items related to the cost of administering the Estate as well as management of property (ex: bills needed settle the Estate, sell property, or court and attorney fees)


• Family -- payments needed for the ongoing support of family members (ex: spouse, dependent, etc)


• Funerals -- products and services purchased for Funeral or Memorial Services including Burial and Cremation


• Government -- outstanding payments to the state or federal government including back taxes, interest, or penalties


• High-priority creditors -- expenses related to large creditors to whom the deceased owed payment (ex: home mortgage)


• Medical -- expenses related to the medical support of the deceased (ex: hospital or hospice care)


• General -- additional Unsecured Debt the deceased may have had (ex: credit cards, payday loans)

Note: some state laws may change the priority order, such as family, taxes, medical expenses and Funeral costs.

Because the rules which guide this process differ in each state, review the links below for more information about the state where the deceased was living at the time of death.