Also known as: allowed claims · allowable claim · allowable claims
Written by attorneys · grounded in primary & secondary sources — see below
A claim against a decedent's estate that has been timely presented by a creditor and formally approved for payment by the personal representative or probate court.
After Marcus died, his widow Brandon petitioned for a family allowance covering housing and medical care for herself and their two sons. The estate held limited cash and faced large unpaid milestone payments to Nova Clinical and Peak Life Sciences. Brandon's petition succeeded because the family allowance holds priority over all claims except the homestead allowance, even though paying it would leave insufficient assets for the vendors' allowed claims.
After the founder died, his probate estate held only modest assets while several creditors held allowed claims. His daughter had received a large nonprobate transfer of company stock. The personal representative pursued the daughter for the shortfall because nonprobate transferees remain liable for allowed claims to the extent the probate estate cannot satisfy them.
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The creditor may petition the probate court for an order directing the personal representative to pay the allowed claim to the extent estate funds are available. The representative must pay allowed claims in statutory priority order after reserving for family allowances and other required items.
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Yes. The family allowance is exempt from and has priority over all claims except the homestead allowance. It may be paid even if the estate is inadequate to discharge allowed claims, though the allowance itself is limited to one year in that situation.
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Yes. A transferee of a nonprobate transfer is subject to liability to the probate estate for allowed claims to the extent the estate is insufficient, up to the value of the transfers received.
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The representative faces personal liability if payments were made before the claims period expired without requiring refund security, or if the payments were negligent and deprived an allowed claimant of priority.
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