Medical Bills Without a Will: Who Pays? State Law Guide

When someone dies intestate (without a will), state law governs debt payment priority.

Payment Hierarchy (Typical)

1. Estate assets pay valid debts (medical, funeral, credit cards) before heir distribution.
2. Secured creditors (mortgage, car loan) have claim on collateral.
3. Administrative expenses (court, attorney, executor fees).
4. Funeral/medical expenses often have statutory priority (varies by state).
5. Unsecured creditors (credit cards, personal loans) paid pro-rata if funds remain.
6. Heirs/beneficiaries receive residue only after all debts settled.

Key Points

• Heirs are not personally liable for decedent's debts unless they co-signed or are in a filial responsibility state (rarely enforced).
• Medicaid estate recovery may claim assets for long-term care costs.
• If estate is insolvent, creditors write off unpaid balances; hospital absorbs loss.

Consult a probate attorney in the decedent's state of residence for definitive guidance.