In What Order Are Debts Paid In Ohio Probate?
The Ohio Revised Code sets forth the order in which debts are paid from an Ohio insolvent probate estate (when an estate has insufficient assets to pay all of its debts and expenses) by establishing ten classes of claims as follows:
- Costs and expenses of administration
- Funeral and cemetery expenses
- Support allowance for surviving spouse and minor children
- Debts entitled to a preference under the laws of the United States
- Expenses of decedent’s last sickness
- Funeral expenses ($4,001 to $6,000)
- Nursing home expenses
- Obligations to the State of Ohio
- Debts for manual labor
- Other debts
Class 1 Debts In Ohio Probate: Costs And Expenses Of Administration
Class 2: Funeral And Cemetery Expenses
Funeral expenses up to $4,000 and cemetery and burial expenses up to $3,000 are Class 2 debts in Ohio probate.
Burial and cemetery expenses are limited to:
- The purchase of a right of interment;
- Monuments or other markers;
- The outer burial container;
- The cost of opening and closing the place of interment;
- The urn.
Class 3 debts in Ohio probate include the support allowance for the surviving spouse and minor children of $40,000, which helps provide for the spouse and children during the administration of the estate.
Class 4: Debts Entitled To A Preference Under The Laws Of The United States
Class 6: Funeral Expenses ($4,001 To $6,000)
Basically, if there are enough assets to pay the first five classes of debts, the funeral director can be paid an additional $2,000 toward any outstanding funeral expenses.
Class 7: Nursing Home Expenses
Class 7 debt includes the expenses of the decedent’s last continuous stay in a nursing home, residential facility, or hospital long-term care unit. Decedent’s last continuous stay includes up to 30 consecutive days during which the decedent was temporarily absent from the nursing home, residential facility, or hospital long-term care unit.
Obligations under this class include personal property taxes, claims made under the Medicaid estate recovery program instituted pursuant to section 5162.21 of the Ohio Revised Code, and any other obligations to the state or its subdivisions.
Class 9: Debts For Manual Labor
Class 10: Other Debts Owed
The final class of debts in Ohio probate is basically a catch-all provision for any other claims that do not fall within the first nine categories and which have been presented and finally allowed. This class also includes any part of the funeral bill over $6,000 and manual labor claims exceeding $300.
No payments are made to creditors of one class until all those of the preceding class are fully paid or provided. If the assets of the Ohio probate are insufficient to pay all of the claims of one class, the creditors of that class are paid ratably.