What Happens When an Estate Is Insolvent in Minnesota?
Enter the estate's assets and the claims in each class of Minnesota'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. Minnesota then pays the claims in 7 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 outMinn. Stat. § 524.3-805Verified Sep 23, 2026View source.
1. Costs and expenses of administrationMinn. Stat. § 524.3-805(a)(1)Verified Sep 23, 2026View source. 2. Reasonable funeral expensesMinn. Stat. § 524.3-805(a)(2)Verified Sep 23, 2026View source. 3. Debts and taxes with preference under federal lawMinn. Stat. § 524.3-805(a)(3)Verified Sep 23, 2026View source. 4. Reasonable and necessary medical, hospital, or nursing home expenses of the last illness, including compensation of persons attending the decedent and claims filed under Minn. Stat. § 256B.15Minn. Stat. § 524.3-805(a)(4)Verified Sep 23, 2026View source. 5. Reasonable and necessary medical, hospital, and nursing home expenses for the care of the decedent during the year immediately preceding deathMinn. Stat. § 524.3-805(a)(5)Verified Sep 23, 2026View source. 6. Debts with preference under other Minnesota laws, and state taxesMinn. Stat. § 524.3-805(a)(6)Verified Sep 23, 2026View source. 7. All other claimsMinn. Stat. § 524.3-805(a)(7)Verified Sep 23, 2026View source.
Minnesota's statute sets the rule class by class rather than one rule for every classMinn. Stat. § 524.3-805(b)Verified Sep 23, 2026View source.
A personal representative is not personally liable for the decedent's debtsMinn. Stat. § 524.3-808(a)-(d); § 524.3-104Verified Sep 23, 2026View source. A personal representative who pays a later class before an earlier class is paid in full is personally liableMinn. Stat. § 524.3-807(a), (b)(2)Verified Sep 23, 2026View source. A personal representative who distributes property to heirs while claims are unpaid is personally liableMinn. Stat. § 524.3-807(b)(1); § 524.3-909; § 524.3-1004; § 524.3-1006Verified Sep 23, 2026View source.
A person named in the will files a written renunciation with the court (Minn. Stat. § 524.3-203(c)). A notary is not required.
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