1. The 8 Statutory Creditor Classes (§ 733.707)
When estate debts exceed or strain estate liquidity, personal representatives are strictly forbidden from paying claims on a first-come, first-served basis. Florida Statute § 733.707 mandates that claims must be paid strictly in the following descending statutory order:
- Class 1: Costs, expenses of administration, compensation of personal representatives and their attorneys, and court fees.
- Class 2: Reasonable funeral, interment, and grave marker expenses not to exceed $6,000.
- Class 3: Debts and taxes with preference under federal law, and Florida Medicaid recovery estate claims.
- Class 4: Reasonable and necessary medical and hospital expenses of the last 60 days of the last illness of the decedent.
- Class 5: Family allowance under Fla. Stat. § 732.403 (up to $18,000 for surviving spouse/dependents).
- Class 6: Arrearage for court-ordered child support.
- Class 7: Debts acquired after death by the continuation of decedent's business pursuant to § 733.612(22).
- Class 8: All other claims, including unsecured credit cards, personal loans, and promissory notes.
2. Notice to Creditors & Bar Dates
Under Fla. Stat. § 733.2121 and § 733.702:
- Known Creditors: Must be served with actual Notice to Creditors within 3 months of first publication. Known creditors have 30 days from service to file claims.
- Unknown Creditors: Must file claims within 3 months after first publication date. Claims not filed within this window are permanently barred.
- Absolute 2-Year Bar Date (§ 733.710): Regardless of notice, all creditor claims are extinguished 2 years after decedent's death.
3. Accounting for Disputed Claims (Schedule B)
Under Fla. Prob. R. 5.496 and Fla. Stat. § 733.705, if the personal representative disputes a filed claim, they must file a written Objection to Claim within 30 days of the claim being filed or the creditor bar date (whichever is later). Once objected to, the creditor has 30 days to file an independent lawsuit. In the Rule 5.346 accounting, contested claims must be listed as contingent liabilities rather than satisfied disbursements.