Florida Probate Debt Payment Priority Order

When someone dies owing money, the estate does not simply hand out assets and hope for the best. Florida law sets a strict sequence — called the priority order — that the personal representative must follow when paying claims. Pay in the wrong order and you can be held personally responsible for the shortfall. This guide walks through each priority class under F.S. 733.707, explains what happens when the estate cannot cover everything, and shows you how to protect yourself as the person in charge.

Why the Order Matters

Every Florida estate has obligations: attorney fees, a funeral bill, perhaps a final hospital stay, or years of accumulated credit card debt. When the estate has plenty of money, payment order is largely a procedural exercise. But when assets are tight, the sequence determines who gets paid in full, who gets partial payment, and who gets nothing.

Under F.S. 733.707, the personal representative must exhaust each class before moving to the next. If the estate runs out of money in the middle of a class, creditors in that class share what remains proportionally. Creditors in lower classes receive nothing.

The Seven Priority Classes Under F.S. 733.707

Class 1: Costs and Expenses of Administration

The first money out of any estate pays for the administration itself. This class includes:

Attorney fees (governed by the separate fee schedule in F.S. 733.6171)
Personal representative compensation
Court filing fees
Publication costs for the Notice to Creditors
Bond premiums (if a bond was required)
Appraisal and accounting fees
Any reasonable cost necessary to preserve and manage estate assets

The rationale is practical: without funding the administration, there is no mechanism to pay anyone else. The court reviews these expenses for reasonableness and can reduce fees it considers excessive.

Class 2: Reasonable Funeral Expenses

Reasonable funeral and burial expenses hold the second-highest priority, up to $6,000 under F.S. 733.707(1)(b). Expenses beyond $6,000 drop to Class 7 as general claims. The $6,000 cap covers the preferred amount — not total funeral costs — so a family that spent $12,000 on a funeral would have $6,000 paid as Class 2 and the remaining $6,000 treated as an unsecured Class 7 claim.

Class 3: Federal Priority Debts and Taxes

Debts that carry priority under federal law — primarily unpaid federal income taxes and federal tax liens — occupy Class 3. Federal law overrides state law when it comes to collection priority, so these claims must be addressed before any Florida-specific obligations.

Class 4: Reasonable Medical and Hospital Expenses of the Last 60 Days

Medical and hospital expenses incurred during the last 60 days of the decedent's final illness receive Class 4 priority. Bills from earlier treatment fall into Class 7. The 60-day window is measured backward from the date of death, so gathering dated statements from providers early in the administration is important.

Class 5: Family Allowance

Florida law allows the surviving spouse and the decedent's lineal heirs the personal representative is supporting to receive a reasonable allowance during estate administration. Under F.S. 732.403, this family allowance can be up to $18,000 in the aggregate and is separate from the exempt property allowance. The allowance has Class 5 priority, meaning it is paid before child support arrearages and general unsecured debts.

For more on this protection, see our Florida Family Allowance guide.

Class 6: Arrearage of Child Support

Court-ordered child support that was past due at the time of death carries Class 6 priority. Only arrearages owed at death qualify; future support obligations are not estate debts.

Class 7: All Other Claims

Everything that does not fit into Classes 1 through 6 falls here:

Credit card balances
Personal loans and promissory notes
Medical bills from outside the last 60 days
Funeral expenses exceeding the $6,000 Class 2 cap
Utility bills and other unsecured obligations
Judgments that are not secured by a lien

This is where most routine consumer debt lands. In a solvent estate these claims are paid in full; in an insolvent estate they are the first to go unpaid.

What Happens When the Estate Is Insolvent

An estate is insolvent when its total verified debts exceed the value of its assets. Insolvency does not mean the personal representative failed — it simply means there is not enough to go around. When that happens:

Do not distribute anything to beneficiaries. Beneficiaries stand behind every creditor class. A premature distribution that leaves a higher-priority creditor unpaid exposes you to personal liability and may require you to claw assets back from beneficiaries.
Work through the classes strictly. Pay Class 1 in full. If anything remains, pay Class 2 in full. Continue down the list.
Pay pro rata within a class. If you reach a class and do not have enough to pay every creditor in it completely, divide the available funds proportionally among those creditors. Every creditor in the same class is treated equally.
Document the math. Keep a written record showing the inventory value, each claim, the class it belongs to, and the amount paid. This protects you if anyone later questions your decisions.

Florida Homestead Is Not Available to Most Creditors

Florida homestead — the primary residence protected under Article X, Section 4 of the Florida Constitution — is not a probate asset available to general creditors. It passes directly to heirs or the surviving spouse outside the estate, which means creditors in any class cannot reach it. Exceptions exist only for:

The mortgage lender (who holds a lien on the property)
Property tax obligations
Mechanics' liens from contractors who worked on the home

This protection is one of the most significant features of Florida estate law and can leave a surviving family in their home even when the estate is otherwise insolvent. For a full explanation, see our Florida Homestead Exemption guide.

Personal Liability of the Personal Representative

Paying debts out of order is one of the most serious mistakes a personal representative can make. Under Florida law, you can be held personally liable for any loss caused by an improper payment. Scenarios that commonly trigger liability include:

Paying a credit card company (Class 7) early in the administration, then discovering a federal tax lien (Class 3) that the estate can no longer cover
Making distributions to beneficiaries before the creditor claims period closes, then receiving a late-filed but valid claim
Paying funeral expenses in excess of $6,000 as Class 2 instead of recognizing the overage is Class 7

How to Protect Yourself

Wait for the claims period to close. Creditors have 3 months from the first publication of the Notice to Creditors to file (F.S. 733.702). Do not make significant payments until you know the full scope of claims.
Set aside reserves. Hold back funds sufficient to cover anticipated tax obligations before distributing to beneficiaries.
Object to improper claims promptly. You have 30 days after a claim is filed to object. If you miss that window, the claim is automatically allowed.
Pay in strict order. Never allow a relationship with a particular creditor or a beneficiary's impatience to push you out of sequence.
Consult your attorney. Florida law requires an attorney in formal administration (F.S. 733.604). Use that resource when a claim's validity or priority is uncertain.

A Quick Reference

Class	What It Covers	Notes
1	Administration costs and attorney fees	Paid first, always
2	Funeral expenses (up to $6,000)	Excess drops to Class 7
3	Federal taxes and federal priority debts	Federal law governs
4	Medical/hospital bills from last 60 days	Earlier bills are Class 7
5	Family allowance (up to $18,000)	F.S. 732.403
6	Child support arrearage	Past-due only
7	All other claims	Credit cards, loans, etc.

Frequently Asked Questions

Can beneficiaries receive anything if there is still debt?

No. Beneficiaries come after all creditor classes. Distributions may only occur after every valid claim has been paid or resolved. See our Florida Creditor Claims guide for the full timeline.

Are joint debts the personal representative's problem?

If the decedent was a co-signer or joint account holder on a debt, the estate may owe its share. The surviving joint debtor typically remains fully responsible for the entire balance and the creditor can pursue both the estate and that person directly.

What about secured debts like a mortgage?

Mortgages and car loans are tied to specific property. The estate can keep the property by continuing payments, or the asset can be sold and the lender paid from the proceeds. Either way, the secured creditor has rights against the specific collateral that exist independently of the priority order.

Does Florida have an estate tax that affects this?

Florida has no state estate tax. The state repealed it in 2004. Federal estate tax may apply to larger estates — see our Federal Estate Tax guide for current thresholds.

Related Guides

Sources:

"Florida Statutes Section 733.707 — Order of Payment of Expenses and Obligations," Florida Legislature, 2024, https://www.flsenate.gov/Laws/Statutes/2024/733.707
"Florida Statutes Section 732.403 — Family Allowance," Florida Legislature, 2024, https://www.flsenate.gov/Laws/Statutes/2024/732.403
"Consumer Pamphlet: Probate in Florida," The Florida Bar, 2024, https://www.floridabar.org/

This guide provides general information about Florida probate debt payment priority. Consult with a Florida probate attorney for advice specific to your situation.