Legal Question in Wills and Trusts in New York

Re: Claim Priorities

Presuming the debts (claims) exceed the size of the estate, there is no order of priority, unless some of the claims are represented by recorded priorities, like mortgages, judgments, etc., or are securred on payment by estate assets (liens). Presuming the claims are all unsecurred and are on parity with each other, the Executor should contact the creditors, explain the situation (not enough money to pay all bills) and compromise the claims within the ability to pay. I have had to do this on several occasions, and most creditors will work with the estate. If any creditors refuse to compromise, suggest that the Executor will seek a Court order directing how and to whom payments are to be made, which will cost the estate fees, thereby reducing the amount that can be made. This usually works. If you need help, contact me directly. This is a response to an Internet question and the reply is not intended to be legal advice or to create an attorney-client relationship. Omitted facts could result in a different answer.