{"id":6447,"date":"2026-10-31T02:04:57","date_gmt":"2026-10-31T02:04:57","guid":{"rendered":"https:\/\/trustcounsel.com\/resources\/trust-litigation-attorney\/what-are-the-different-classes-of-creditors\/"},"modified":"2026-11-04T00:59:32","modified_gmt":"2026-11-04T00:59:32","slug":"what-are-the-different-classes-of-creditors","status":"publish","type":"page","link":"https:\/\/trustcounsel.com\/resources\/trust-litigation-attorney\/what-are-the-different-classes-of-creditors\/","title":{"rendered":"What Are the Different Classes of Creditors? Florida Guide"},"content":{"rendered":"\n
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Probate and Trust Creditor Claims | Coral Gables, Florida<\/p>

Understanding the Classes of Creditors in a Florida Estate<\/h1>

A plain-language guide to how Florida ranks claims against an estate, from Trust Counsel, PL in Coral Gables.<\/p>

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By Leslie V. Marenco \u00b7 Published October 30, 2026<\/p>\n\n

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By Leslie V. Marenco, responsible lawyer, Trust Counsel, PL, Coral Gables, Florida<\/strong><\/p>\n

Florida ranks estate creditor claims into eight classes. When an estate can’t pay every debt, the personal representative pays the classes in order, and if the estate is insufficient to pay all of a class, that class’s creditors are paid ratably in proportion to their respective claims. So, what are the different classes of creditors? Under Fla. Stat. \u00a7 733.707<\/a>, the personal representative shall pay the expenses of the administration and obligations of the decedent’s estate in the following order.<\/p>\n

Why creditor classes matter when someone dies in Florida<\/h2>\n

A creditor class is a ranking that decides which debts get paid first when the estate’s money runs short. Many families learn this at a hard moment. A parent has died, collection letters arrive, a funeral bill sits on the table, and someone must decide what to pay and when.<\/p>\n

Many people assume the loudest caller gets paid first. The order is set in Fla. Stat. \u00a7 733.707<\/a>, and the personal representative must follow it.<\/p>\n

For wider context on disputes over trusts and estates, see our trust litigation overview<\/a>.<\/p>\n\n

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The order of payment under Florida Statute 733.707<\/h2>\n

Under Fla. Stat. \u00a7 733.707<\/a>, the personal representative pays the expenses of the administration and obligations of the decedent’s estate in order, beginning with Class 1, which covers costs, expenses of administration, and compensation of personal representatives and their attorneys fees.<\/p>\n

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  1. Class 1:<\/strong> Costs and expenses of administration, including compensation of personal representatives and their attorneys’ fees.<\/li>\n
  2. Class 2:<\/strong> Reasonable funeral, interment and grave marker expenses.<\/li>\n
  3. Class 3:<\/strong> Debts and taxes with preference under federal law, claims pursuant to ss. 409.9101 and 414.28, and claims in favor of the state for unpaid court costs, fees or fines.<\/li>\n
  4. Class 4:<\/strong> Reasonable and necessary medical and hospital expenses from the last 60 days of the last illness.<\/li>\n
  5. Class 5:<\/strong> The family allowance.<\/li>\n
  6. Class 6:<\/strong> Arrearage from court-ordered child support.<\/li>\n
  7. Class 7:<\/strong> Debts acquired after death by continuing the decedent’s business, up to that business’s assets.<\/li>\n
  8. Class 8:<\/strong> All other claims, including those founded on judgments or decrees rendered against the decedent during the decedent’s lifetime, and any excess over the sums allowed in paragraphs (b) and (d) of Fla. Stat. \u00a7 733.707<\/a>.<\/li>\n<\/ol>\n

    After paying any preceding class, if the estate is insufficient to pay all of the next succeeding class, the creditors of the latter class shall be paid ratably in proportion to their respective claims. If the estate can’t cover a whole class, creditors in that class share in proportion to their claims, under Fla. Stat. \u00a7 733.707<\/a>.<\/p>\n

    Administration costs and funeral expenses come first<\/h2>\n

    Costs of running the estate and reasonable funeral expenses, within the limit set by Florida law, are paid before all other debts, since the personal representative pays the expenses of the administration and obligations of the decedent\u2019s estate in that order. Administration costs include court costs and other necessary expenses of handling the estate. The personal representative must also publish a notice to creditors, once a week for 2 consecutive weeks, under Fla. Stat. \u00a7 733.2121<\/a>.<\/p>\n

    Funeral costs sit in Class 2. The statute caps that class at $6,000 in total, whether the personal representative or another person paid the bill, per Fla. Stat. \u00a7 733.707<\/a>. Families often assume a large funeral bill will be paid in full ahead of everything. The cap says otherwise.<\/p>\n

    A personal representative’s compensation is figured under its own statute. Florida allows a commission for ordinary services, and Fla. Stat. \u00a7 733.617<\/a> explains how that commission is based on the estate’s value. Under Fla. Stat. \u00a7 733.707(2)<\/a>, after paying any preceding class, if the estate is insufficient to pay all of the next succeeding class, the creditors of the latter class shall be paid ratably in proportion to their respective claims.<\/p>\n

    Preferred debts: federal priority and last-illness medical bills<\/h2>\n

    Federal priority debts and last-illness medical bills rank in Classes 3 and 4, ahead of family support and general debts. Class 3 covers debts and taxes with preference under federal law, claims pursuant to ss. 409.9101 and 414.28, and claims in favor of the state for unpaid court costs, fees, or fines. It sits behind funeral costs, not ahead of them.<\/p>\n

    Class 4 covers reasonable and necessary medical and hospital expenses from the last 60 days of the decedent’s last illness. It also covers pay for people who attended the decedent in that period. Bills outside that window don’t fall in Class 4, so they must be ranked under another class.<\/p>\n

    Two common mistakes come up here. People assume all medical debt is in Class 4. They also assume federal debts outrank funeral costs.<\/p>\n

    Secured creditors and the property behind their claims<\/h2>\n

    A secured creditor holds a lien or security interest in specific property, such as a home mortgage or a car loan. The claims deadline doesn’t prevent a lienholder from enforcing that lien, under Fla. Stat. \u00a7 733.702<\/a>.<\/p>\n

    Florida also bars execution or levy on estate property without court approval. That rule still leaves mortgages, security interests and liens on specific property enforceable, under Fla. Stat. \u00a7 733.706<\/a>.<\/p>\n

    To spot secured debts, check the loan papers and any liens recorded against the property. Whether a secured debt is paid from the property itself or from the estate depends on the facts of the loan and the property.<\/p>\n

    General unsecured creditors and judgment creditors<\/h2>\n

    Ordinary unsecured debts and judgment creditors usually fall into Class 8, the last class. Credit card balances and personal loans with no collateral are typical examples. A judgment entered against the decedent during life also sits in Class 8, under Fla. Stat. \u00a7 733.707<\/a>.<\/p>\n

    A revocable trust can change the picture. After the settlor’s death, a portion of a revocable trust in which the decedent had a right of revocation is liable for the decedent’s estate’s expenses and obligations to the extent the estate is insufficient to pay them. After death, any portion of a trust with respect to which the decedent, as grantor, had a right of revocation at death is liable for estate expenses and obligations to the extent the estate is insufficient to pay them. The trustee must pay the personal representative the amounts certified in writing as needed, under Fla. Stat. \u00a7 736.05053<\/a>. For more, see whether revocable trusts protect assets from creditors.<\/p>\n

    Deadlines for presenting creditor claims<\/h2>\n

    Under Fla. Stat. \u00a7 733.702<\/a>, a creditor’s claim is not binding on the estate unless it is filed in the probate proceeding on or before the later of 3 months after the first publication of the notice to creditors or, for a creditor required to be served with a copy of that notice, 30 days after the date of service on the creditor. Those dates are 3 months after first publication of the notice to creditors, or 30 days after service on a creditor who must be served, under Fla. Stat. \u00a7 733.702<\/a>. Fla. Stat. \u00a7 733.702<\/a> reads: “If not barred by s. 733.710, no claim or demand against the decedent\u2019s estate that arose before the death of the decedent, including claims of the state and any of its political subdivisions, even if the claims are unmatured, contingent, or unliquidated; no claim for funeral or burial expenses; no claim for personal property in the possession of the personal representative; and no claim for damages, including, but not limited to.”<\/p>\n

    A claim filed late is barred, even if no one objects. Fla. Stat. \u00a7 733.702<\/a> reads: “unless filed in the probate proceeding on or before the later of the date that is 3 months after the time of the first publication of the notice to creditors or, as to any creditor required to be served with a copy of the notice to creditors, 30 days after the date of service on the creditor, even though the personal representative has recognized the claim or demand by paying a part of it or interest on it or otherwise.” The court can extend the time only on grounds of fraud, estoppel or insufficient notice of the claims period. Fla. Stat. \u00a7 733.702<\/a> reads: “No independent action or declaratory action may be brought upon a claim which was not timely filed unless an extension has been granted by the court.” The notice itself must warn that late claims are forever barred, under Fla. Stat. \u00a7 733.2121<\/a>.<\/p>\n

    Florida also sets a payment timeline. The personal representative must pay claims within 1 year of first publication, with extensions for claims in litigation and certain contingent or unmatured claims, under Fla. Stat. \u00a7 733.705<\/a>. Fla. Stat. \u00a7 733.705<\/a> reads: “(1) The personal representative shall pay all claims within 1 year from the date of first publication of notice to creditors, provided that the time shall be extended with respect to claims in litigation, unmatured claims, and contingent claims for the period necessary to dispose of those claims pursuant to subsections (5), (6), (7), and (8).” Paying a lower-ranked debt early can leave too little for a higher class.<\/p>\n

    How bankruptcy ranks creditors differently<\/h2>\n

    Bankruptcy uses a separate federal system with its own categories for secured, priority and unsecured claims. Don’t assume the Florida order in this guide applies inside a bankruptcy case. Bankruptcy runs on its own rules and its own court process, apart from estate administration.<\/p>\n

    Estates and bankruptcies are different tracks. Mixing them up can lead people to watch the wrong deadlines. If you think a fiduciary paid claims out of order, the question turns on that person’s duties, which we explain in fiduciary duty questions.<\/p>\n\n

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    If creditor claims are coming in after a death or a trust settlement<\/h2>\n

    Once creditor letters start arriving, sort each debt into its class and note its deadline. A family member may have died, or a trust may have become irrevocable, and demands keep coming. It’s normal to feel unsure who must act first.<\/p>\n

    Trust Counsel’s attorneys can serve individually as trustee or personal representative. The firm advises and represents trustees, personal representatives and beneficiaries.<\/p>\n

    If you’re sorting through creditor letters now, call (305) 707-7126 or request your free first consultation through our contact page<\/a>. The first consultation is free, confidential and comes with no obligation to continue.<\/p>\n

    What are the different classes of creditors?<\/summary>

    Florida has eight classes, from administration costs and funeral expenses to all other claims. The order is set out in Fla. Stat. \u00a7 733.707<\/a>.<\/p><\/details>

    How long do creditors have to file a claim?<\/summary>

    Generally, creditors must file by the later of 3 months after first publication or 30 days after service on a required creditor. The rule appears in Fla. Stat. \u00a7 733.702<\/a>.<\/p><\/details>

    Can a revocable trust pay estate debts?<\/summary>

    Yes, a revocable trust can be liable for estate expenses and obligations to the extent the estate is insufficient. See Fla. Stat. \u00a7 736.05053<\/a>.<\/p><\/details>

    Do secured creditors lose their liens after a death?<\/summary>

    No. The claims deadline doesn’t prevent enforcement of a mortgage, security interest or other lien on the decedent’s property, per Fla. Stat. \u00a7 733.702<\/a>.<\/p><\/details>\n\n<\/article>\n