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Bank Accounts and Financial Institutions

What is the right order to pay debts from the estate?

Short answer

California law sets a priority order: (1) funeral and burial expenses, (2) expenses of estate administration, (3) family allowance, (4) debts and taxes with preference under federal law, (5) secured debts, (6) judgments, (7) all other debts. Creditors must file claims within…

What this usually means

California law sets a priority order: (1) funeral and burial expenses, (2) expenses of estate administration, (3) family allowance, (4) debts and taxes with preference under federal law, (5) secured debts, (6) judgments, (7) all other debts. Creditors must file claims within a deadline set by the court — unsecured debts not claimed in time may be barred.

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