How Debts Are Handled in California Probate
How Debts Are Handled in California Probate
When a loved one passes away in California, their estate typically goes through probate—a legal process to validate the will, pay outstanding debts, and distribute remaining assets. For families navigating this process, one of the most important and often misunderstood aspects is how debts are handled. At the Law Office Of Ian Noel, we provide legal assistance to the California public throughout probate and estate administration.
Identifying the Debts of the Estate
The probate process begins by identifying all assets and liabilities. The personal representative (or executor) of the estate is responsible for gathering this information and notifying creditors. Under California Probate Code, creditors must be notified and given an opportunity to file claims—typically within four months of the appointment of the personal representative.
Common debts include:
- Mortgages
- Credit card balances
- Medical bills
- Personal loans
- Final utility bills and taxes
Paying Valid Claims
Once claims are submitted, the personal representative reviews them and determines whether they are valid. Valid debts are paid using estate assets. If the estate has enough liquid assets (such as bank accounts or investment funds), these may be used first. If not, other property may need to be sold to satisfy obligations.
What If There’s Not Enough to Pay?
California follows a priority system when debts exceed available assets. Certain debts are paid first:
- Funeral expenses
- Administrative costs of the estate
- Secured debts (like mortgages)
- Unsecured debts (like credit cards)
If the estate is insolvent (meaning it doesn’t have enough to cover all debts), lower-priority creditors may receive only partial payment—or nothing at all.
What About Community Property?
California is a community property state. This means that if the deceased had a surviving spouse, creditors might be able to access community property assets to pay certain debts. However, separate property of the surviving spouse generally remains protected.
Protecting Beneficiaries
Beneficiaries typically are not personally responsible for the debts of the deceased. However, distributions to heirs cannot be made until debts and expenses are resolved. Improper handling of debts can lead to personal liability for the executor, so legal guidance is often critical.
Legal Support During Probate
The Law Office Of Ian Noel offers guidance and support to Californians working through probate. We can assist with:
- Identifying and notifying creditors
- Evaluating and paying valid claims
- Managing disputes or rejected claims
- Protecting the estate from creditor overreach
Navigating probate debt can be complex, especially during a time of grief. Let us help you move forward with confidence.


