What Happens When an Estate Is Insolvent in Maine?
Enter the estate's assets and the claims in each class of Maine's payment order to see which claims are paid in full, which are paid in part, and which go unpaid, along with when the executor is personally liable.
Frequently Asked Questions
An estate is insolvent when the claims against it exceed the assets available to pay them. Maine then pays the claims in 9 classes, in the order its statute sets, and the classes at the end of the order are the ones left unpaid when the money runs out18-C MRS § 3-805Verified Sep 23, 2026View source.
1. Costs and expenses of administration18-C MRS § 3-805(1)(A)Verified Sep 23, 2026View source. 2. Reasonable funeral expenses18-C MRS § 3-805(1)(B)Verified Sep 23, 2026View source. 3. Homestead allowance18-C MRS § 3-805(1)(B-1)Verified Sep 23, 2026View source. 4. Family allowance18-C MRS § 3-805(1)(B-2)Verified Sep 23, 2026View source. 5. Exempt property18-C MRS § 3-805(1)(B-3)Verified Sep 23, 2026View source. 6. Debts and taxes with preference under federal law18-C MRS § 3-805(1)(C)Verified Sep 23, 2026View source. 7. Medicaid benefits recoverable under 22 MRSA § 14(2-I), and reasonable and necessary medical and hospital expenses of the last illness, including compensation of persons attending the decedent18-C MRS § 3-805(1)(D)Verified Sep 23, 2026View source. 8. Debts and taxes with preference under other laws of Maine18-C MRS § 3-805(1)(E)Verified Sep 23, 2026View source. 9. All other claims18-C MRS § 3-805(1)(F)Verified Sep 23, 2026View source.
In proportion to their amounts: each claim in the class receives the same share of what it is owed18-C MRS § 3-805(2)Verified Sep 23, 2026View source.
A personal representative is not personally liable for the decedent's debts18-C M.R.S. § 3-808(1)-(3); § 3-104Verified Sep 23, 2026View source. A personal representative who pays a later class before an earlier class is paid in full is personally liable18-C M.R.S. § 3-807(2)(B)Verified Sep 23, 2026View source. A personal representative who distributes property to heirs while claims are unpaid is personally liable18-C M.R.S. § 3-807(2)(A); § 3-104; § 3-1004; § 3-909; § 3-1003(1)(B)Verified Sep 23, 2026View source.
A person named in the will files a written renunciation with the court (18-C M.R.S. § 3-203(3)). A notary is not required.
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