Tennessee law sets out priority of payments from the estate in T.C.A. § 30-2-317 as follows:

1. Costs of administration, including, but not limited to, premiums on the fiduciary bonds and reasonable compensation to the personal representative and the personal representative’s counsel.
2. Reasonable funeral expenses.
3. Taxes and assessments imposed by the federal or any state government or subdivision of the federal or any state government, including claims by the bureau of TennCare pursuant to § 71-5-116 and including city and county governments.
4. All other demands that may be filed as aforementioned within four (4) months after the date of notice to creditors.

Any funds left over will be paid to the will beneficiaries or to the intestate heirs.