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Creditor Claims

Creditors have 1 year from the first complete advertisement of letters to file claims against the estate. After that, unknown creditors are barred.

20 Pa. Cons. Stat. Ann. § 3532

Notice: Estate administration and planning involve complex legal, tax, and fiduciary considerations. This information is provided for educational purposes. Consult with a licensed attorney and tax professional for guidance specific to your situation.

Priority of Claims

When estate assets are insufficient to pay all debts, claims are paid in the following order of priority:

1

Costs of estate administration

Filing fees, publication costs, attorney fees, personal representative compensation

2

Family exemption

Surviving spouse or minor children entitled to $3,500 from estate assets

3

Funeral expenses

Reasonable funeral and burial costs

4

Costs of last illness

Medical expenses from final illness

5

Government claims

Federal and state tax liens, Medicaid estate recovery

6

All other claims

General unsecured creditors

Family Exemption: $3,500

The surviving spouse (or minor children if no surviving spouse) is entitled to retain $3,500 worth of estate assets free from creditor claims. This is separate from and in addition to any intestate share or bequest.

20 Pa. Cons. Stat. Ann. § 3121