Q: If creditors file a claim against my dad's estate, does that mean they get money before any of his kids?

A: Yes, creditors of the estate are paid before any beneficiary receives their inheritance. That is so long as the creditor claim is valid and filed within four months of the administrator or executor receiving letters. If the creditor claim is not valid or is untimely, the administrator or executor can deny the claim.

A: That depends. There are many factors to take into consideration. The creditor's claim procedure is set forth in detail in the Probate Code. The first question is whether the personal representative provided notice to the creditor to begin the running of the time to file the creditor's claim. Has the creditor timely filed the claim? If the creditor's claim was timely filed, has the personal representative rejected the claim? If the personal representative has not provided notice to the creditor, has the claim been made prior to the one-year statute of limitations after the death of the decedent? If the claim has been timely filed and rejected, has the creditor timely filed a civil action before the expiration of the one year statute? The personal representative has the right to litigate the merits of the creditor's claim. Finally, the answer to your question is, generally yes, a creditor is paid before the final distribution can be made to the beneficiaries.

A: Good question. Actually, there is an "order" to distributions.

Creditors always get paid first, which includes funeral and administration expenses. If the estate does not have enough money to pay all the debts, then the debts are prioritized.

However, creditors are paid first from the "residual' estate. This would be the whole thing subject to probate if your Dad died without a will. But, if he had a will, this would be the property subject to the residual distribution. (The paragraph that starts off, "I give the rest and residue of my estate.")

But, if the residue is insufficient, then the other gifts (there are more than one kind) "abate" in the following order:

1. General Gits to person's other than the decedent's relatives. (A "general gift" is a gift of a particular sum or share of money, "$5,000", or "Half my bank accounts.)

2. General Gifts to relatives.

3. Specific Gifts to persons other than the decedent's relatives. (A "specific gift" is a gift of a particular item or piece of property, for example, "my home", "my piano", "my IRA account with XYZ investments.)

4. Specific Gifts to relatives.

The only exception is mortgages on real property which is a specific gift. In this case, the mortgage follows the property unless the will states otherwise.

I hope this simple explanation will help, although there are some more detailed rules but this should suffice for now.