California Statute of Limitations on Credit Card Debt of a Probate

As with other states in the U.S., California has specific processes that must be followed when a person passes away. The state has three types of probate proceedings, for example, and in each case debts must be paid as part of the estate settlement process. Debt claims must be listed on the estate before they are paid. Though not necessary for many probate cases, a California probate attorney can be helpful for figuring out complicated debt situations.

Three Types of Estates

In California a decedent's estate can fall into one of three categories. A small estate has estate assets valued at less than $100,000. An independent estate is where the decedent left a will and assigned a personal representative to handle his final estate affairs. A court-assisted estate is used for estates valued over $100,000 when there is no will and no personal representative was named.

Probate Process

The probate process is designed to ensure that all of a decedent's valuables --- or assets --- are accounted for and all debts are paid off in full so that surviving family members are not left with debt liabilities. After the debts are settled and taxes paid when applicable, the remaining assets get distributed to family, heirs or beneficiaries based on the terms of the decedent's will or state law.

Debt Claims

One of the first actions a probate process requires is to notify all creditors of the decedent's death. Creditors get notified by mail or newspaper publications, and they must validate their claim on the estate within four months of receiving the death notification. Only those debts that have been officially claimed on the probate estate are paid as part of the estate settlement process.

Debt Payoff Priority

California has a payoff priority order that must be followed by the estate executor or personal administrator. This means that debts must be paid in a specific order, and in the case of a court-assisted probate case, each debt payment must be first approved by the judge. Generally, funeral expenses and court costs have the highest payment priority, but those can be superseded by federal debt such as back taxes or IRS liens. Credit card debt is one of the lowest priorities, but all debts are paid with the assets from the estate before anything is distributed as inheritance.