Probate - If an estate is insolvent, what happens to the claims?
Is the personal representative responsible?
Question
What happens if the estate does not have the money to pay all of the claims?
Does the debt just go away (which I'm sure isn't going to happen), or is
the personal representative responsible for it.
Answer
Claims would be paid in their order of priority. If there is insufficient
money to pay all the claims in the highest priority of unpaid claims, then
those claims are paid on a pro rata basis. The balance of those claims
and any in a lower priority would not be paid and the personal representative
is not personally responsible.
You may read more about the claims procedure and priority for payment
of claims in the Probate Notes section of this web site under "Probate
of an Estate in Michigan". Specifically, this information is located
at: http://courts.co.calhoun.mi.us/notes000.htm
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Last Updated: 5-4-08
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