California Probate Code Section 11401

Legal Definition

“Debt” means:

(a) A claim that is established under Part 4 (commencing with Section 9000) or that is otherwise payable in the course of administration.

(b) An expense of administration.

Basic Definition

Section 11401: Debt refers to claims and charges against an estate, including those established under Part 4, expenses of administration, and charges such as taxes, last illness expenses, and family allowance.

In-Depth Overview and Use Cases

This section of the California Probate Code defines “debt” within the context of estate administration. It highlights the various types of financial obligations that must be settled during the probate process. For example, a creditor may file a claim against the estate if they are owed money, or the estate may need to cover administrative expenses such as court fees or executor costs. Another use case includes the payment of taxes and funeral expenses, which are considered debts of the estate and need to be resolved before assets can be distributed.

Application & Relevance

In probate litigation, Section 11401 is relevant when determining which debts and expenses need to be paid by the estate before distributions to beneficiaries. Probate attorneys will refer to this section to ensure all debts—whether claims by creditors or expenses of the estate like taxes and funeral costs—are properly accounted for and settled. The probate court will need to confirm that debts are satisfied before distributing the remaining estate assets.

Legal Scenario

Probate Estate: A creditor files a claim for unpaid medical bills after the decedent’s death, and the estate must pay these as part of administration.

Probate Code Impact

This section clarifies that the estate must pay the claim as a debt of the estate, which could include medical expenses incurred during the decedent’s last illness. The creditor must file the claim within the time specified by the court.

Legal Scenario

Financial Elder Abuse: A family member claims the decedent’s unpaid care provider owes money to the estate.

Probate Code Impact

The estate administrator is responsible for determining if the claim is valid, considering this type of claim as an expense of administration that must be addressed before distribution of assets.

Frequently Asked Questions

How does Section 11401 impact the order of debt settlement in probate?

Section 11401 outlines all debts—including claims, administration expenses, and taxes—that are payable during the course of a probate administration. This ensures that all heirs and beneficiaries may understand the scope of possible debts to be assessed against the estate before distributions are made.

Can the estate’s debts be contested under Section 11401?

Yes, creditors or interested parties can challenge the validity of a debt, but these disputes must be resolved before the estate can be distributed. The probate court oversees this process to ensure fairness and compliance.

How do probate attorneys use Section 11401 in litigation?

Probate attorneys reference Section 11401 to ensure that all debts, including expenses related to the decedent’s last illness and funeral, are accounted for and paid. They also use this section to confirm that the estate can legally proceed to distribution once debts are settled.