Flower Mound, TX asked in Civil Litigation and Estate Planning for Texas

Q: If an estates assets are much less than it’s liabilities, how does the personal representative handle the creditors?

The estate has $12k. The debt is $40k

1 Lawyer Answer
Terry Lynn Garrett
PREMIUM
Terry Lynn Garrett
Answered
  • Estate Planning Lawyer
  • Austin, TX
  • Licensed in Texas

A: The Texas Estates Code requires that debts be paid in a certain order. There are eight classes. When the personal representative does not have enough in the estate to pay a class, the remaining funds are paid to the creditors in that class pro rata. It might be a good idea to consult a local probate lawyer to make sure this is done correctly: the personal representative is personally liable for a mistake.

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