Florida Probate Creditors: Protecting Your Inheritance

Introduction

When a loved one passes away in Florida, families are often left with grief — and a list of unanswered questions about debt. Who pays the credit card bills? What about outstanding hospital charges, mortgages, or car loans? Perhaps the biggest fear: will creditors come after me personally for my parent’s or spouse’s debts?

The good news is that in most cases, debts belong to the estate, not the heirs. Florida probate law provides a structured process for dealing with creditors so that families can move forward without unnecessary financial stress.

This article explains how creditors are handled in Florida probate, when families may or may not be responsible, and the steps you can take to protect your rights.

Florida probate creditors must be addressed through the probate proceeding before heirs can inherit. Creditor claims in probate Florida follow strict deadlines under the probate creditor period.

A Florida probate attorney can guide families through estate debts and protect exempt property.

Creditors in Florida Probate: What They Are and Why They Matter

A probate creditor is any individual, company, or government agency owed money by the decedent at the time of death. Common examples include:

• Credit card companies
• Medical providers and hospitals
• Mortgage lenders
• Car loan and personal loan lenders
• The State of Florida (Medicaid estate recovery)
• The IRS or Florida Department of Revenue

These debts don’t disappear when someone dies. Instead, they must be addressed through the estate’s probate administration. Creditors play a central role in probate because they get paid before beneficiaries receive their inheritance.

Why Probate Creditors Are a Major Concern for Florida Families

The moment families hear about “creditor claims,” anxiety spikes. Common concerns include:

• “Will I be sued personally?”
• “Will the family home be taken?”
• “What if there isn’t enough money to cover everything?”

Without proper guidance, beneficiaries sometimes make mistakes, such as paying a bill out-of-pocket that should have been handled through the estate. Others may ignore a creditor claim and face legal consequences later.

Understanding how probate creditors work helps families avoid unnecessary stress, financial mistakes, and prolonged court battles.

Who Needs to Worry About Probate Creditors (and Who Doesn’t)

Not every family member is at risk of being pursued for debts. Here’s the breakdown:

At risk:

• Co-signers on loans (e.g., a child who co-signed a parent’s credit card).
• Joint account holders (not just authorized users).
• Surviving spouses on a mortgage note.

Not at risk:

• Heirs or beneficiaries who had no legal connection to the debt.
• Family members receiving exempt property such as homestead or life insurance.

In Florida, the estate pays creditors — not the heirs. This distinction is critical for protecting families from unnecessary liability.

When Probate Creditor Issues Arise in Florida Estates

Creditor concerns come into play as soon as probate begins. Specific scenarios where this becomes especially important include:

• Large medical bills following a long hospital stay.
• Credit card debt that exceeds available liquid assets.
• Mortgages on real property when children want to keep the family home.
• Medicaid estate recovery, where the state seeks repayment for benefits.
• Insolvent estates, where debts are greater than assets.

Every estate is different. Some may face few creditor issues, while others involve complex disputes that require litigation.

How the Florida Probate Creditor Process Works

Florida has clear statutes that govern how creditor claims must be handled:

1. Notice to Creditors Published – The personal representative publishes a Notice to Creditors in a local newspaper. (§ 733.2121, Fla. Stat.)
2. Direct Notice Sent – Known creditors must also receive direct notice.
3. 90-Day Window for Claims – Creditors have three months from the date of publication to file claims (§ 733.702, Fla. Stat.).
4. Statute of Repose – Regardless of notice, no claims can be brought more than 2 years after death (§ 733.710, Fla. Stat.).
5. Payment Priority – Debts are paid in statutory order (§ 733.707, Fla. Stat.):
   • Class 1 — Costs, expenses of administration, and compensation of personal representatives and their attorneys, including attorneys’ fees awarded under § 733.106(3).
   • Class 2 — Reasonable funeral, interment, and grave marker expenses, whether paid by a guardian, the personal representative, or any other person, not to exceed an aggregate of $6,000.
   • Class 3 — Debts and taxes with preference under federal law; claims pursuant to §§ 409.9101 and 414.28; and claims in favor of the state for unpaid court costs, fees, or fines.
   • Class 4 — Reasonable and necessary medical and hospital expenses of the last 60 days of the decedent’s last illness, including compensation of persons attending the decedent.
   • Class 5 — Family allowance.
   • Class 6 — Arrearage from court-ordered child support.
   • Class 7 — Debts acquired after death by continuation of the decedent’s business under § 733.612(22), but only to the extent of the business assets.
   • Class 8 — All other claims, including those based on judgments or decrees against the decedent during life, and any excess over the sums allowed in Class 2 (funeral) and Class 4 (last illness).

This process ensures fairness — but it also means beneficiaries must wait until debts are resolved before receiving distributions.

Examples of Probate Creditor Issues in Florida

• Hospital Bill Over $100,000: Estate assets were liquidated to pay medical providers, leaving heirs with less inheritance.
• Disputed Credit Card Balance: A claim was challenged as untimely and rejected, saving beneficiaries thousands.
• Family Home with Mortgage: Surviving children inherited the home but had to refinance the mortgage into their own names.
• Medicaid Claim Against Estate: Handling Medicaid recovery can be difficult because these claims are strongly protected under Florida law. However, a competent probate attorney understands how to apply the statutes and available defenses to address Medicaid’s claim effectively, sometimes reducing the impact on estate assets and preserving more for heirs.

Key Probate Creditor Terms Every Family Should Know

• Estate – All property, assets, and debts of the deceased.
• Personal Representative (PR) – Court-appointed executor handling the estate.
• Notice to Creditors – Legal notice that starts the creditor claim period.
• Exempt Property – Assets creditors cannot touch (e.g., homestead, certain personal property).
• Insolvent Estate – Estate where debts exceed assets.
• Statute of Limitations – Deadline for creditors to file claims.
• Payable on Death (POD) – Accounts that bypass probate and creditors.
• Medicaid Estate Recovery – State claim for benefits provided during lifetime.

Common Myths About Probate Creditors in Florida

• Myth: Heirs inherit debts.
  • Fact: Debts are estate liabilities, not passed to heirs (unless co-signer).
• Myth: Creditors can seize all assets.
  • Fact: Homestead and many non-probate assets are exempt.
• Myth: Ignoring creditors makes them go away.
  • Fact: Claims must be formally handled or disputed in court.
• Myth: Funeral costs are always covered.
  • Fact: They are capped at $6,000 priority in probate.

Options for Handling Probate Creditor Claims in Florida

Challenging Creditor Claims

When creditors file invalid, excessive, or late claims, the PR (through counsel) can object.

Negotiating Probate Debts

Settlements may reduce the total amount paid, especially with unsecured creditors.

Protecting Beneficiaries and Exempt Property

Florida law shields homestead, retirement accounts, and POD accounts from most creditors.

Key Factors Florida Families Should Consider

When Florida Probate Creditors Matter Most

Probate creditors matter when the estate has unpaid bills that must be resolved before heirs inherit. Common scenarios include:

• Large medical or hospital expenses
• Credit card balances or loans
• Mortgages tied to family property
• Medicaid estate recovery

Not all assets are subject to creditor claims. Life insurance, POD accounts, and certain retirement plans often pass outside probate.

Florida Deadlines and Rules for Creditor Claims

Florida law gives creditors limited time to act:

• 3 months from publication of the Notice to Creditors (§ 733.702, Fla. Stat.)
• 2 years absolute bar under the statute of repose (§ 733.710, Fla. Stat.)

The personal representative must publish notice and notify known creditors directly. Claims are then paid in strict statutory order under § 733.707.

Essential Rules Families Cannot Avoid

Some parts of Florida probate creditor law are strict and cannot be avoided:

• Notice is required – Creditors must be formally notified, or their claims remain alive.
• Payment order is mandatory – All valid claims must be paid or resolved in the probate proceeding before heirs inherit.
• Deadlines matter – Missed objections make claims valid, and late payments can create liability.
• No shortcuts – Paying bills out of pocket can cause confusion and expose families personally.

These rules are why professional guidance is critical when handling Florida probate creditors.

How Lorenzo Law Strategically Handles Creditor Claims

At Lorenzo Law, we focus on protecting heirs while meeting Florida’s legal requirements. We:

• Review whether claims are valid or enforceable
• Protect exempt assets like homestead property
• Negotiate or challenge claims when possible

Our goal is to reduce unnecessary payments and help families close probate with confidence.

Risks and Benefits of Addressing Probate Creditors Correctly in Florida

Risks of mishandling creditors:

• Paying personally when you don’t have to.
• Missing objection deadlines.
• Losing exempt property protections.

Benefits of proper handling:

• Protect heirs from harassment.
• Save estate assets through disputes/negotiations.
• Close probate faster and cleaner.

Costs and Timeframes in Handling Florida Probate Creditors

• Attorney’s fees: Paid from estate as administration expense.
• Court costs: Filing and publication fees.
• Timeframe:
  • 3-month creditor claim period.
  • Probate often lasts 6–12 months, longer if disputes arise.
• Who pays: The estate, not heirs (unless personally liable as co-signers).

Best Path for Florida Families Facing Creditor Concerns in Florida

The best way to handle Florida probate creditors is to work with an experienced Florida probate attorney who can:

• Review and analyze all creditor claims in probate Florida to determine validity.
• File timely objections to invalid or late creditor claims during the probate creditor period.
• Protect exempt property such as homestead from Florida estate debts.
• Advise heirs so they do not mistakenly pay probate debts out of pocket.
• Ensure the notice to creditors Florida requirement is properly handled.
• Negotiate with creditors to reduce or settle claims and preserve estate assets.
• Guide families step by step on who pays debts after death in Florida and which assets creditors cannot reach.

Alternative Paths If Estate Is Insolvent

• Negotiate creditor claims for partial settlement.
• Close probate without distribution if Florida estate debts exceed assets.
• Work with a Florida probate attorney to challenge late creditor claims in probate Florida.
• Use exemptions, such as homestead protection, to shield assets from Florida probate creditors

Step-by-Step Process for Handling Probate Creditors in Florida

1. File for probate and appoint personal representative.
2. Publish and send Notice to Creditors.
3. Collect creditor claims (90-day window).
4. Review and object to invalid claims.
5. Pay valid claims in statutory order.
6. Distribute remaining assets to heirs.
7. Close probate with final accounting.

Checklist of Documents for Florida Probate Creditor Handling

• Death certificate.
• Letters of Administration.
• Creditor claim forms.
• Proof of publication.
• Estate inventory.
• Homestead petition.
• Receipts and accountings.

Protect Your Family From Florida Probate Creditors

At Lorenzo Law, we understand how stressful creditor claims can feel. You don’t have to face this alone. Our team helps Florida families navigate creditor disputes, protect exempt property, and preserve inheritance whenever possible.

📞 Call us today for a consultation with a Florida probate attorney.

Credentials & Compliance

• Licensed Florida Probate Attorney.
• Years of experience handling probate creditor disputes statewide.
• Years to handling Florida Probate Litigation matters.

Legal Disclaimer

This article is informational only and not legal advice. Consult an attorney for advice regarding your specific situation.

FAQs About Probate Creditors in Florida

Q1: Who pays debts after someone dies in Florida?
The estate, not the heirs, pays valid debts.

Q2: Can creditors take the family home?
Florida homestead is generally exempt from most creditor claims.

Q3: What happens if the estate is insolvent?
Creditors are paid in statutory order. Beneficiaries may receive nothing.

Q4: Do heirs inherit medical bills?
No — unless they signed as guarantors or co-signers.

Q5: What if creditors miss the 3-month deadline?
Their claims are barred, except for very narrow exceptions.

Q6: Are life insurance and retirement accounts safe from creditors?
Yes, if they have designated beneficiaries.

Q7: Can creditors contact me directly after my loved one dies?
Yes, creditors may reach out, but to be enforceable, they must file a formal claim in the probate court, not harass heirs directly.

Q8: How long does creditor resolution take in Florida probate?
At least 3 months, often 6–12 months total probate duration.

Q9: What is a Notice to Creditors in Florida probate?
It is a legal notice published by the personal representative that gives Florida probate creditors 3 months to file claims in the estate.

Q10: Can a Florida probate attorney dispute creditor claims?
Yes. An attorney can object to late, invalid, or excessive creditor claims, protecting the estate and heirs from unnecessary payments.

Q11: Are funeral expenses considered probate debts?
Yes, but Florida law limits priority funeral and burial expenses to $6,000 under § 733.707. Anything above that is treated as a lower-class claim.

Q12: What happens if a personal representative pays heirs before creditors?
That violates Florida probate law. Creditors must be paid or resolved in the probate proceeding first. A personal representative can be held personally liable if the statutory order is ignored.

Q13: Can credit card companies collect after death in Florida?
Yes, but only by filing a timely creditor claim in probate. If no claim is filed within the statutory deadlines, the debt cannot be collected.

Q14: Does Florida Medicaid always get paid back after death?
Medicaid has strong collection rights, but homestead and some exempt property are protected. A Florida probate lawyer can help apply exemptions and sometimes reduce claims.

Q15: Do small estates in Florida have to deal with creditors?
Yes. Even in summary administration, known creditors must be addressed before the court approves distribution. Creditors cannot be ignored just because the estate is small.

Protecting Your Family From Florida Probate Creditors

Dealing with Florida probate creditors is often one of the most stressful parts of estate administration. From credit card balances to medical bills, every valid claim must be paid or resolved in the probate proceeding before heirs can inherit.

Strict deadlines, the probate creditor period, and the notice to creditors Florida requirement all add to the complexity.

The good news is that families do not have to navigate these issues alone. A knowledgeable Florida probate attorney can guide you through creditor claims in probate Florida, protect exempt property such as homestead, and make sure Florida estate debts are handled according to the law.

If you are facing questions about who pays debts after death in Florida, or if you need help protecting your inheritance, our team is ready to assist. Contact Lorenzo Law today for clear answers and experienced support.

Florida Probate Attorney Serving Families Statewide

As a Florida probate attorney, I handle creditor claims and estate administration in counties across the state, including Miami-Dade, Broward, Palm Beach, Orange, Hillsborough, Pinellas, and Duval.

I also serve clients in cities such as Miami, Fort Lauderdale, West Palm Beach, Orlando, Tampa, Jacksonville, and Naples. No matter where you live in Florida, I can guide your family through the Florida probate process and protect your rights.

Contact a Florida Probate Attorney Today

If you are dealing with Florida probate creditors, facing questions about creditor claims in probate Florida, or need guidance on Florida estate debts, I can help. As a dedicated Florida probate attorney,

I take cases across the state to protect families, preserve inheritances, and make sure every claim is handled according to law. Whether it’s the probate creditor period, the notice to creditors Florida, or advice on who pays debts after death in Florida, I provide the support you need.

Contact me today to discuss your case and get the trusted legal guidance your family deserves.