What debts must be paid from the estate first?

What the Law Says

The Probate and Administration Act sets out the statutory order in which debts and liabilities must be paid from a deceased person’s estate before any distribution to beneficiaries.

Under Singapore law, all debts and liabilities of the deceased must be settled from the estate before assets can be distributed to beneficiaries. The law prescribes a strict order of priority to ensure fairness and legal compliance.

This order protects essential costs like funeral and estate administration first, then honours creditors’ rights according to the nature of their claims — secured creditors before unsecured ones — and finally leaves legacies (gifts under the will) to be paid only after all debts are cleared.

Statutory Text

All debts and liabilities of the deceased shall be paid in the following order of priority: (a) funeral expenses; (b) administration expenses; (c) secured debts; (d) unsecured debts, including taxes and rates; (e) legacies.

— Probate and Administration Act, s. 57 — Order of payment of debts

What to Do

Sources