District of Columbia Debt Payment Priority

When a District of Columbia estate cannot pay every claim in full, the personal representative pays in the order D.C. Code § 20-906(a) sets: court costs, publication costs and bond premiums first, then funeral expenses up to $5,000, fiduciary and attorney's fees up to $1,000, the homestead and family allowances, exempt property, last-illness medical bills, rent arrears, D.C. court judgments, and finally all other just claims.

That order decides who gets paid when the money runs short. Paying a low class ahead of a higher one, or paying heirs before the claims are settled, can leave a personal representative owing the shortfall personally (D.C. Code § 20-909(b)). This guide walks through each of the nine classes, the funeral-expense rule, where secured debts, taxes and Medicaid recovery fit, and the steps that commonly reduce a personal representative's risk. This is general information, not legal advice.

Why the Order Matters

Most estates hold enough to pay every valid debt and still leave something for the family. In those estates the order is mostly bookkeeping, because everyone gets paid.

The order decides real outcomes in two situations:

An insolvent estate. The debts are larger than the assets available to pay them. The statute applies "if the applicable assets of the estate are insufficient to pay all claims in full" (§ 20-906(a)), and it tells you which creditors go unpaid.
An early payment. The personal representative pays a creditor or an heir before the claim period closes and leaves too little for a claim that outranked them. That mistake lands on the personal representative.

D.C. also puts a deadline on payment. No later than 8 months after the first publication of notice of appointment, the personal representative "shall ... proceed to pay the claims allowed against the estate in the order of priority prescribed in section 20-906," unless the court extends the time for good cause (D.C. Code § 20-909(a)). A creditor with a valid claim who is not paid by then may petition the court for an order directing payment.

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The Nine Classes Under D.C. Code § 20-906

Each class is paid in full before anything goes to the next class.

Class	What it covers	Statutory limit
1	Court costs, publication costs, and bond premiums	None stated
2	Funeral expenses	$5,000 (see § 20-907 for more)
3	Fiduciary and attorney's fees	$1,000
4	Homestead allowance and family allowance	Set by §§ 19-101.02 and 19-101.04
5	Exempt property	Set by § 19-101.03
6	Reasonable and necessary medical and hospital expenses of the last illness, including pay for people who attended the decedent	None stated
7	Rent in arrears for which an attachment might be levied by law	None stated
8	Judgments and decrees of D.C. courts	None stated
9	All other just claims	None stated

Inside a class, nobody jumps the line. "No preference shall be given in the payment of any claim over any other claim of the same class, and a claim due and payable shall not be entitled to preference over claims not due" (§ 20-906(b)). If the money runs out partway through a class, the claims in that class split what is left, and a bill that came due first gets no head start over one that comes due later.

Class 1: Court costs, publication, and bond

The costs of running the estate come first, because the administration has to be funded before anyone else can be paid. This class covers court costs, the cost of publishing the notice of appointment, and the premium on any personal representative bond. The D.C. creditor claims guide explains the publication step.

Class 2: Funeral expenses up to $5,000

Funeral expenses rank second, capped at $5,000 within the class (§ 20-906(a)(2)). D.C. Code § 20-907 adds three rules for funeral bills:

The court may allow more. In its discretion, the court may allow funeral expenses above $5,000 "according to the condition and circumstances of the decedent, but in no event shall such allowance exceed $15,000."
A will can hand the decision to the personal representative. When the estate is solvent and the will expressly lets the personal representative pay funeral expenses in an amount left to their discretion, no court allowance is needed.
The family can waive the limit in a solvent estate. The funeral-expense limit for a solvent estate may be waived in a writing signed by all heirs or legatees and filed with the Register of Wills.

The personal representative's general power to pay funeral costs, including burial space and a suitable tombstone or marker, also stops at $15,000 except as §§ 20-906 and 20-907 provide (D.C. Code § 20-741(16)). Section 20-906 does not say where a funeral bill above the class 2 cap ranks, so in an insolvent estate, a funeral payment above $5,000 is a question the Probate Division can address.

Class 3: Fiduciary and attorney's fees up to $1,000

Class 3 covers fiduciary and attorney's fees, and the statute caps the class at $1,000 (§ 20-906(a)(3)). A personal representative "is entitled to reasonable compensation for services" (D.C. Code § 20-751), but in an insolvent estate only $1,000 of fees carries class 3 rank. The statute does not say where a larger fee ranks. In an estate that cannot cover its debts, a larger fee is a question for the court.

Class 4: The homestead and family allowances

The family and homestead allowances share class 4. A surviving spouse or domestic partner takes a $30,000 homestead allowance, and if none survives, minor and dependent children divide it (D.C. Code § 19-101.02). The family allowance is "a reasonable allowance in money out of the estate" for the family's maintenance during administration (D.C. Code § 19-101.04(a)), and the personal representative may pay it as a lump sum of up to $30,000 (D.C. Code § 19-101.05(a)).

Both allowances rank ahead of every debt in classes 5 through 9, including credit cards, personal loans, and older medical bills. That ordering is what protects a family in a small or insolvent estate.

Class 5: Exempt property

The $20,000 exempt property allowance covers household furniture, automobiles, furnishings, appliances, and personal effects for the surviving spouse or domestic partner, or for the children if no spouse or partner survives (D.C. Code § 19-101.03(a) and (b)). It ranks behind the class 4 allowances and ahead of the last-illness bills.

Which figures apply depends on the date of death. The $30,000 homestead allowance, the $30,000 family allowance lump sum, and the $20,000 exempt property figure come from D.C. Law 25-302, effective March 21, 2025. The rule tying them to deaths on or after that date sits in section 7(d) of that law (D.C. Law 25-302, section 7(d), as amended by D.C. Law 26-164, a temporary act effective until March 27, 2027). For a death before March 21, 2025, the earlier figures were a $15,000 homestead allowance, a $15,000 family allowance lump sum, and $10,000 of exempt property. Confirm with the Probate Division which figures it applies to your estate before you pay.

Class 6: Last-illness medical and hospital expenses

Reasonable and necessary medical and hospital expenses of the decedent's last illness rank sixth, and the class includes pay for the people who attended the decedent (§ 20-906(a)(6)). A hospital bill from the final stay ranks here. A medical bill from an unrelated visit years earlier is a class 9 claim.

Classes 7 and 8: Rent arrears and D.C. judgments

Class 7 covers "claims for rent in arrears for which an attachment might be levied by law" (§ 20-906(a)(7)). Class 8 covers judgments and decrees of courts in the District of Columbia. A judgment entered by a court outside D.C. is not named in class 8.

Class 9: All other just claims

Everything that does not fit a higher class lands here: credit card balances, personal loans, utility bills, older medical bills, and most other unsecured debt. In an insolvent estate, class 9 creditors most often take partial payment or nothing.

Debts That Sit Outside the Nine Classes

Mortgages, car loans, and other secured debts

A secured lender looks first to its collateral. The 6-month claim bar does not affect any action to enforce "any mortgage, pledge, judgment, or other recorded or otherwise perfected security interest on property of the estate" (D.C. Code § 20-903(b)). A secured creditor who surrenders the collateral is paid on the full claim. One who keeps it is paid on the claim less what the collateral brings or is worth (D.C. Code § 20-912).

An unsecured creditor gets no such shortcut. No execution or levy may issue against estate property under a judgment against the decedent, and no claim that is not secured by its terms attaches to a particular estate asset (D.C. Code § 20-914).

Federal and District tax claims

Section 20-906 lists no class for taxes. Two rules fill that gap:

The 6-month bar does not apply the same way. Section 20-903(a) bars late claims "except as otherwise expressly provided by statute with respect to claims of the United States and the District of Columbia."
Federal claims come first. Under 31 U.S.C. § 3713(a)(1)(B), a claim of the United States "shall be paid first" when the estate of a deceased debtor "is not enough to pay all debts of the debtor." A representative who pays any other debt before a federal claim "is liable to the extent of the payment for unpaid claims of the Government" (31 U.S.C. § 3713(b)).

When the decedent owed federal income tax or another federal debt and the estate is insolvent, § 3713 generally places that federal claim ahead of the other debts.

Medicaid estate recovery

If the decedent received D.C. Medicaid at age 55 or older, the District may seek repayment from the estate for the services and premiums it paid (29 DCMR 6701.2). The Department of Health Care Finance (DHCF) runs the program. Section 20-906 names no separate class for this claim. Four points shape it:

Probate assets only. The rule defines the estate as property that does not pass at death to another person by the terms of the instrument under which it is held or by operation of law (29 DCMR 6799).
Recovery waits for the family. Federal law allows recovery only after the death of a surviving spouse, and only when no surviving child is under 21, blind, or disabled (42 U.S.C. § 1396p(b)(2)).
The home has extra protection. No lien attaches to the home while a surviving spouse, a child under 21, a blind or disabled child, or a qualifying sibling with an equity interest lawfully lives there (29 DCMR 6702.1).
Waivers exist. DHCF may waive a claim for undue hardship (29 DCMR 6702.2 and 6703) and treats a claim under $100 as not cost-effective (29 DCMR 6702.3).

DHCF's Third Party Liability Division answers estate recovery questions at (202) 698-2000, per its 2015 fact sheet.

When probate assets run out

Many D.C. estates pass most of their value outside probate, through payable-on-death accounts, transfer on death deeds, or a revocable trust. Creditors can still reach some of it. A person who received a nonprobate transfer the decedent could have revoked alone is liable to the probate estate for allowed claims and statutory allowances, to the extent the estate is insufficient, capped at the value that person received (D.C. Code § 19-601.02(b)). Survivorship in a joint tenancy of real estate is excluded (§ 19-601.02(a)). The proceeding needs a written demand to the personal representative from a creditor, the surviving spouse, or a child, and it must start within one year after the death (§ 19-601.02(g) and (h)).

The Claim Timeline Behind the Order

The payment order works together with the claim deadlines:

Notice. Within 20 days after appointment, the personal representative publishes notice of the appointment once a week for 2 successive weeks in a legal periodical or newspaper of general circulation (D.C. Code § 20-704(a), as amended by D.C. Law 26-164, a temporary act effective until March 27, 2027).
The 6-month claim bar. Claims are barred unless presented within 6 months after the first publication of notice (D.C. Code § 20-903(a)). A creditor presents a claim by delivering or mailing a verified written statement to the personal representative with a copy to the Register of Wills, or the reverse (D.C. Code § 20-905(a)).
Allow or disallow. The personal representative mails each timely claimant a notice allowing the claim, disallowing it in whole or in part, or saying the court will decide. A disallowed claim is barred unless the claimant files a verified complaint within 60 days after the notice was mailed (D.C. Code § 20-908(a)).
Pay by 8 months. The personal representative pays the allowed claims in the § 20-906 order no later than 8 months after first publication, unless the court extends the time (§ 20-909(a)).

The D.C. probate timeline places these dates against the rest of the administration.

When the Personal Representative Pays Personally

D.C. lets a personal representative pay a just, unbarred claim at any time, with or without formal presentation. The risk comes with the timing. The personal representative is personally liable to any other claimant whose claim is allowed and who is hurt by the payment if (D.C. Code § 20-909(b)):

the payment was made before 6 months from the first publication of notice, and the personal representative did not require the payee to give adequate security to refund what other claimants need; or
the payment was made through the personal representative's negligence or willful fault.

Federal law adds its own personal liability for paying other debts ahead of a federal claim (31 U.S.C. § 3713(b)).

Two tools lower that risk. A claim the decedent was being sued on before death does not make the personal representative personally liable for paying or distributing without it, if the personal representative had no actual knowledge of the claim and the claimant had not presented it on time (D.C. Code § 20-903(c)). And a personal representative may convene a meeting of creditors on a day the court designates, where the court approves or denies each presented claim. Paying a claim as approved by court order "shall hold harmless the personal representative acting in obedience to it," subject to any appeal (D.C. Code § 20-910).

How Personal Representatives Commonly Sequence the Work

Step 1: Taking stock. A list of what the estate holds and what it owes, with probate assets separated from the accounts and property that pass outside probate, shows whether the estate is insolvent.

Step 2: Notice on time. Publication starts the 6-month claim clock, and nothing ends that clock early. The D.C. creditor claims guide covers the notice steps.

Step 3: Class 9 waits on the higher classes. Paying credit cards and other general debts before the higher classes, any federal claim, and any Medicaid claim are covered is where § 20-909(b) and 31 U.S.C. § 3713(b) liability usually arises. A higher-ranked claim can still arrive before the deadline.

Step 4: Testing each claim. A presented claim is not automatically a valid one. A personal representative may disallow an inflated or unproven claim by mailed notice under § 20-908, and the court may disallow a claim that does not state the facts § 20-905(b) requires.

Step 5: Paying in order, with records. A record of every payment, the class it falls in, and the date supports the account. In an insolvent estate, § 20-910 offers a court-approved route through a meeting of creditors.

Step 6: Distribution comes last. Heirs are generally paid only after the claim period has run and the allowed claims are paid. The District of Columbia executor duties guide lays out the full sequence.

Frequently Asked Questions

Does the family have to pay the deceased person's debts in D.C.?

Generally no. Debts belong to the estate, not to relatives. A family member owes a debt only if they co-signed it or held it jointly. The estate pays valid claims in the § 20-906 order from its assets. A person who received a revocable nonprobate transfer can be asked to return value to the estate under § 19-601.02 if the probate estate falls short.

What is paid first when a D.C. estate is insolvent?

Court costs, publication costs, and bond premiums come first under § 20-906(a)(1). Funeral expenses up to $5,000 come second, then fiduciary and attorney's fees up to $1,000. A federal claim also takes first priority under 31 U.S.C. § 3713.

How much can a D.C. estate spend on a funeral?

Funeral expenses rank in class 2 up to $5,000. The court may allow more, up to $15,000, based on the decedent's condition and circumstances (§ 20-907). In a solvent estate, all heirs or legatees can waive the limit in a signed writing filed with the Register of Wills.

Are credit cards paid before the family allowance?

No. Credit card balances are class 9, "all other just claims." The homestead and family allowances are class 4, so they are paid first.

When must a D.C. personal representative pay the claims?

No later than 8 months after the first publication of notice, in the § 20-906 order, unless the court extends the time for good cause (§ 20-909(a)).

This guide is general information about estates in the District of Columbia. It is not legal advice. For your own situation, consult a licensed District of Columbia attorney. The Probate Division of the D.C. Superior Court can confirm filing procedure.

Sources:

Title: D.C. Code § 20-906, Order of payment. Publisher: Council of the District of Columbia. Publication Date: Not listed. URL: https://code.dccouncil.gov/us/dc/council/code/sections/20-906
Title: D.C. Code § 20-907, Funeral expenses. Publisher: Council of the District of Columbia. Publication Date: Not listed. URL: https://code.dccouncil.gov/us/dc/council/code/sections/20-907
Title: D.C. Code § 20-909, Payment of claim. Publisher: Council of the District of Columbia. Publication Date: Not listed. URL: https://code.dccouncil.gov/us/dc/council/code/sections/20-909
Title: D.C. Code § 20-903, Limitation on presentation of claims against the estate. Publisher: Council of the District of Columbia. Publication Date: Not listed. URL: https://code.dccouncil.gov/us/dc/council/code/sections/20-903
Title: D.C. Code § 20-905, Manner of presentation of claim. Publisher: Council of the District of Columbia. Publication Date: Not listed. URL: https://code.dccouncil.gov/us/dc/council/code/sections/20-905
Title: D.C. Code § 20-908, Action on claims; remedy for failure to act. Publisher: Council of the District of Columbia. Publication Date: Not listed. URL: https://code.dccouncil.gov/us/dc/council/code/sections/20-908
Title: D.C. Code § 20-910, Meeting of creditors. Publisher: Council of the District of Columbia. Publication Date: Not listed. URL: https://code.dccouncil.gov/us/dc/council/code/sections/20-910
Title: D.C. Code § 20-912, Secured claim. Publisher: Council of the District of Columbia. Publication Date: Not listed. URL: https://code.dccouncil.gov/us/dc/council/code/sections/20-912
Title: D.C. Code § 20-914, Execution and levy prohibited. Publisher: Council of the District of Columbia. Publication Date: Not listed. URL: https://code.dccouncil.gov/us/dc/council/code/sections/20-914
Title: D.C. Code § 20-704, Notice of appointment to interested persons, creditors and unknown heirs. Publisher: Council of the District of Columbia. Publication Date: Not listed. URL: https://code.dccouncil.gov/us/dc/council/code/sections/20-704
Title: D.C. Code § 20-741, General powers. Publisher: Council of the District of Columbia. Publication Date: Not listed. URL: https://code.dccouncil.gov/us/dc/council/code/sections/20-741
Title: D.C. Code § 20-751, Compensation. Publisher: Council of the District of Columbia. Publication Date: Not listed. URL: https://code.dccouncil.gov/us/dc/council/code/sections/20-751
Title: D.C. Code § 19-101.02, Homestead allowance. Publisher: Council of the District of Columbia. Publication Date: Not listed. URL: https://code.dccouncil.gov/us/dc/council/code/sections/19-101.02
Title: D.C. Code § 19-101.03, Exempt property. Publisher: Council of the District of Columbia. Publication Date: Not listed. URL: https://code.dccouncil.gov/us/dc/council/code/sections/19-101.03
Title: D.C. Code § 19-101.04, Family allowance. Publisher: Council of the District of Columbia. Publication Date: Not listed. URL: https://code.dccouncil.gov/us/dc/council/code/sections/19-101.04
Title: D.C. Code § 19-101.05, Source, determination, and documentation; equitable apportionment when minor children are not in custody of the surviving spouse or surviving domestic partner. Publisher: Council of the District of Columbia. Publication Date: Not listed. URL: https://code.dccouncil.gov/us/dc/council/code/sections/19-101.05
Title: D.C. Code § 19-601.02, Liability of nonprobate transferees for creditor claims and statutory allowances. Publisher: Council of the District of Columbia. Publication Date: Not listed. URL: https://code.dccouncil.gov/us/dc/council/code/sections/19-601.02
Title: D.C. Law 25-302, Strengthening Probate Administration Amendment Act of 2024. Publisher: Council of the District of Columbia. Publication Date: March 21, 2025. URL: https://code.dccouncil.gov/us/dc/council/laws/25-302
Title: D.C. Law 26-164, Strengthening Probate Administration Temporary Amendment Act of 2026. Publisher: Council of the District of Columbia. Publication Date: August 14, 2026. URL: https://code.dccouncil.gov/us/dc/council/laws/26-164
Title: 31 U.S.C. § 3713, Priority of Government claims. Publisher: U.S. Government Publishing Office. Publication Date: United States Code, 2024 Edition. URL: https://www.govinfo.gov/content/pkg/USCODE-2024-title31/html/USCODE-2024-title31-subtitleIII-chap37-subchapII-sec3713.htm
Title: 42 U.S.C. § 1396p, Liens, adjustments and recoveries, and transfers of assets. Publisher: U.S. Government Publishing Office. Publication Date: United States Code, 2023 Edition. URL: https://www.govinfo.gov/content/pkg/USCODE-2023-title42/html/USCODE-2023-title42-chap7-subchapXIX-sec1396p.htm
Title: 29 DCMR 6701, Services Subject to Recovery. Publisher: D.C. Office of Documents and Administrative Issuances. Publication Date: August 4, 2006 (53 DCR 6353). URL: https://dcregs.dc.gov/Common/DCMR/SectionList.aspx?SectionNumber=29-6701
Title: 29 DCMR 6702, Limitations. Publisher: D.C. Office of Documents and Administrative Issuances. Publication Date: August 4, 2006 (53 DCR 6353). URL: https://dcregs.dc.gov/Common/DCMR/SectionList.aspx?SectionNumber=29-6702
Title: 29 DCMR 6799, Definitions. Publisher: D.C. Office of Documents and Administrative Issuances. Publication Date: August 4, 2006 (53 DCR 6353). URL: https://dcregs.dc.gov/Common/DCMR/SectionList.aspx?SectionNumber=29-6799
Title: Public Notice: Medicaid Estate Recovery Fact Sheet. Publisher: D.C. Department of Health Care Finance. Publication Date: August 19, 2015. URL: https://dhcf.dc.gov/release/public-notice-medicaid-estate-recovery-fact-sheet

It is not legal advice.