What Happens When an Estate Is Insolvent in New York?
Enter the estate's assets and the claims in each class of New York'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 York then pays the claims in 6 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.Y. SCPA § 1811Verified Sep 23, 2026View source.
1. Administration expensesN.Y. SCPA § 1811(1)Verified Sep 23, 2026View source. 2. Reasonable funeral expensesN.Y. SCPA § 1811(1)Verified Sep 23, 2026View source. 3. Debts with preference under federal or state lawN.Y. SCPA § 1811(2)(a)Verified Sep 23, 2026View source. 4. Taxes assessed on property before deathN.Y. SCPA § 1811(2)(b)Verified Sep 23, 2026View source. 5. Judgments docketed and decrees entered against decedent, according to their priorityN.Y. SCPA § 1811(2)(c)Verified Sep 23, 2026View source. 6. Recognizances, bonds, sealed instruments, notes, bills, unliquidated demands and accountsN.Y. SCPA § 1811(2)(d)Verified Sep 23, 2026View source.
New York's statute sets the rule class by class rather than one rule for every classN.Y. SCPA § 1811(2)(c), (3)Verified Sep 23, 2026View source.
A executor is not personally liable for the decedent's debtsEPTL § 11-4.1; EPTL § 11-4.6(a)Verified Sep 22, 2026View source. New York's statutes state no rule on the executor's personal liability for 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 (SCPA § 1417(1), (4)). The writing is signed and acknowledged before a notary. Renunciation of Executor for New York
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