What Happens When an Estate Is Insolvent in New Jersey?
Enter the estate's assets and the claims in each class of New Jersey'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. New Jersey 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 outN.J.S.A. 3B:22-2Verified Sep 23, 2026View source.
1. Reasonable funeral expensesN.J.S.A. 3B:22-2(a)Verified Sep 23, 2026View source. 2. Costs and expenses of administrationN.J.S.A. 3B:22-2(b)Verified Sep 23, 2026View source. 3. Debts for services of the Office of the Public Guardian for Elderly AdultsN.J.S.A. 3B:22-2(c)Verified Sep 23, 2026View source. 4. Debts and taxes with federal or state preferenceN.J.S.A. 3B:22-2(d)Verified Sep 23, 2026View source. 5. Last illness medical/hospital expensesN.J.S.A. 3B:22-2(e)Verified Sep 23, 2026View source. 6. Judgments (in order of entry)N.J.S.A. 3B:22-2(f)Verified Sep 23, 2026View source. 7. All other claimsN.J.S.A. 3B:22-2(g)Verified Sep 23, 2026View source.
New Jersey's statute sets the rule class by class rather than one rule for every classN.J.S.A. 3B:22-2Verified Sep 23, 2026View source.
New Jersey's statutes state no rule on the executor's personal liability for the decedent's debts, paying a later class before an earlier class is paid in full or distributing property to heirs while claims are unpaid.
A person named in the will files a written renunciation with the court (R. 4:96-2 (Renunciations)). The writing is signed and acknowledged before a notary. Renunciation of Executor for New Jersey
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