What is typically settled first during probate for debts owed by a deceased individual?

In probate, debts are typically settled based on a hierarchy of obligations. Medical debt generally takes precedence as one of the first types of debts to be paid before others. This reflects the essential nature of medical services, which prioritize the well-being of the individual, and often include final medical expenses incurred before death.

When an individual passes away, the probate process involves gathering the deceased's assets and paying off debts in a specific order, adhering to state laws. Medical debt is given priority as it often includes urgent care or treatments that were necessary for the deceased, making these obligations important to settle promptly.

While other types of debts, such as credit card debt, mortgage payments, and personal loans, do indeed need to be settled during probate, they tend to follow medical expenses. This ordering helps to ensure that obligations associated with health care are addressed first, reflecting societal values around health and care.

Understanding this hierarchy is crucial for financial counselors, especially when advising clients about estate planning and the implications of debts in the probate process.