From the proceeds of the deceased's estate, the executor must pay, in the following order:

This priority of payment is also followed when a person dies leaving more debts than assets.

Before the assets of the deceased's estate can be distributed to beneficiaries, the funeral expenses may need to be paid. The person who organises the funeral (usually the executor) is responsible for paying the invoice. Some banks are able to pay funeral costs directly from the deceased's bank account once they have received the tax invoice. If this is not possible, an executor may need to pay the funeral costs upfront but will be entitled to be repaid before other creditors are paid. A testator may state in their will how the funeral expenses are to be paid.

Creditors of an estate must wait until the assets of the estate are available to the executor or administrator and reasonable funeral and testamentary expenses are paid before they may receive payment.

The will usually states which part of the estate must be used to pay the debts, including the funeral expenses. Usually the residuary estate (those assets not specifically left to a particular person) is used for this purpose. If the residuary estate is insufficient to pay the debts, other specific gifts in the will may be used to bear these costs proportionately. There is a particular order for payment of debts in these circumstances.