Who Qualifies and How It Works
The family allowance goes to the surviving spouse, minor children, and other dependents. It can be paid as a lump sum or in installments. The personal representative sets the amount. The limit is $12,000 as a lump sum or $1,000 per month for one year.
If the surviving spouse is living, they receive the allowance for the family. If there is no surviving spouse, the children or their caretakers receive it.
Priority Over Creditors
The family allowance comes before all claims except handling expenses and the homestead allowance. Creditors cannot collect until this allowance is paid. However, the allowance counts against what the family would otherwise inherit. The will or governing instrument can change this rule.
If the estate lacks enough assets to pay all claims, the family allowance cannot last past one year.