In California Probate Code, there’s an order in which creditors’ claims are addressed. Section 11420 of the Probate Code organizes them into classes and assigns them priority. Here are the seven classes of creditors under California Probate Code.

Class 1 – Expenses of Administration

The first priority is to pay for the estate’s administrative expenses. Additionally, any expenses for actually administering the property with obligations secured by a mortgage, a lien or a deed of trust, actually take priority over the actual mortgage, lien or deed of trust.

Class 2 – Obligations Secured by a Mortgage, Deed of Trust, or Other Lien

After that, the personal representative has to make sure all obligations secured by a mortgage, a lien or a deed of trust are fulfilled. Then, if proceeds from the estate can’t over those obligations, the rest goes to the estate’s general debts.

Class 3 – Funeral Expenses

All funeral expenses are charged against the estate of the person who died. They are not to be charged to the surviving spouse.

Class 4 – Last Illness Expenses

Next, any expenses from the final illness that caused the death, if an illness caused the death get paid.

Class 5 – Family Allowance

After that, the personal representative must give an allowance from the estate funds of a reasonable amount to the decedent’s surviving spouse, minor children, and any adult children who were dependent on the decedent’s support before because they were unable to work due to a physical or mental condition.

Class 6 – Wage Claims

Any employee who had been employed by the decedent or who did contracted work for the decedent within the 90 days prior to death is then entitled to a wage claim up to $2,000.

Class 7 – General Debts

After all of the above classes are taken care of, then, creditors with general debts not included in prior classes can be paid.

 

Do You Need A California Realtor Specializing In Probate?

We are experts in the probate sale under the probate code and trust law. So, we know the California Probate Code. We won’t let you get lost in it. If you need a realtor in California specializing in probate, please contact us today! We are upfront and honest about the costs of probate. Everyone wants to know about probate fees, but no one wants to talk about them. We will though. Sentinel Realty Partners wants our clients to be fully prepared and fully informed about buying or selling California probate real estate.

We have a list of the absolute best probate lawyers in California available for our customers. Plus, we also have relationships with the most vetted contractors, plumbers and electricians in California. See? We will guide you through every step of the process of selling (or even purchasing) a home involved in probate.

If you are buying a home in California, please have a look at our probate property search. If you need a Los Angeles, Orange County, Riverside, or San Bernardino professional to help you through the probate real estate maze, call us! These waters a murky, and you’ll want a knowledgeable, dependable, responsive team behind you. Check out Sentinel Realty Partners’ client reviews.

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