ORDER OF PAYMENT – FEES, EXPENSES, DEBTS OF THE DECEDENT

If the assets of an estate are insufficient to pay all claims in full, meaning the estate is insolvent, it is important for the personal representative to follow the order of payment provided by Maryland law. Certain fees and expenses have a higher priority and must be paid before expenses and debts with a lower priority.

The personal representative shall make payment in the following order:

1. Fees due to the register;
2. Costs and expenses of administration;
3. Funeral expenses;
4. Compensation of personal representatives, for legal services, and commissions of licensed real estate brokers;
5. Family allowance(s);
6. Taxes due by the decedent;
7. Reasonable medical, hospital, and nursing expenses of the last illness of the decedent;
8. Rent payable by the decedent for not more than three months in arrears;
9. Wages, salaries, or commission for services performed for the decedent within three months prior to death of the decedent;
10. Assistance paid under the Public Assistance to Adults Program, as provided in § 5-407(d) of the Human Services Article; and
11. All other claims.