Claims in Probate

One of the main functions of a decedent's probate estate is to afford a forum for creditors of the decedent to file any claims they may possess against the decedent. All claims must be filed within six months following the appointment of a representative of the decedent's estate. In addition, there is an absolute bar with regard to any claims not filed within two years following the date of death of a decedent.

What if the estate does not have enough assets to pay all claims?

The Illinois Probate Act provides for a hierarchy of claims. First class claims get paid before second class claims; fourth class claims get paid before fifth class claims, etc. All claims get paid before any beneficiary of the estate receives anything. The Illinois Probate Act at 755 ILCS 5/18-10 classifies claims as follows:

First class--Funeral and burial expenses, expenses of administering the estate (including attorneys' and representative's fees), and statutory custodial claims are first-class claims and have the highest priority for payment.

Second class--Surviving spouse's and child's awards have priority over any creditors' claims other than first-class claims.

Third class--Federal estate tax owed is a third-class claim against the estate.

Fourth class--Money due to employees of the decedent not exceeding $800 for services rendered to the decedent within four months of the decedent's death, along with the expenses of the decedent's final illness, are fourth-class claims.

Fifth class--Money or property received or held by the decedent in trust that cannot be identified or traced is a fifth-class claim.

Sixth class--Debts to the State of Illinois and any municipality located within Illinois are sixth-class claims.

Seventh class--All claims not included in a higher classification are seventh-class claims.