Probate - How are claims pro rated in an insolvent estate?

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Question

I am looking for clarification on distributing an estate and pro rata shares. Here is a hypothetical situation.

Let's say a decedent's estate has $400.00, and, the outstanding creditor's bills are:

1. Mastercard - $50.00
2. Electric bill- $150.00
3. Water Bill- $ 350.00
4. Heat Bill- $75.00

Since these debts are on the same priority level, how is the $400.00 distributed?

Answer

You would use the total amount of claims in the category as the denominator and the amount of each claim as a numerator to establish the fraction of the remaining assets to which each claim is entitled.

For example, the first claim would be entitled to $50/$625 X $400 = $32.

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Last Updated: 8-12-09

Send your comments, questions and suggestions to Phil Harter at 161 E Michigan Avenue, Battle Creek, Michigan 49014 or e mail to: pharter@calhouncountymi.gov