Also known as: orders of priority · priority order
Written by attorneys — see sources below.
A prescribed ranking according to which claims against an estate, interests in property, or other obligations are satisfied or positions are filled in a specified sequence.
After the time for presenting claims against Oscar Ortiz's estate expired, the personal representative identified allowed claims from several creditors plus unpaid administration costs. The representative first set aside funds for the family allowance and then paid the remaining claims according to the statutory ranking. A creditor whose allowed claim went unpaid petitioned the court for an order directing payment once estate funds became available.
Olivia Owens's surviving spouse exercised the right of election and received the base elective-share amount from the augmented estate. Because that amount fell short of the statutory floor, the spouse became entitled to a supplemental amount. The personal representative paid the supplemental sum from the net probate estate and from recipients of nonprobate transfers according to the prescribed ranking.
The personal representative must begin paying allowed claims once the earlier of the time limitations for presentation of claims has expired. Before paying, the representative must first set aside funds for homestead, family, and support allowances, for claims already presented but not yet allowed or under appeal, and for unbarred claims that may still be presented along with administration costs.
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The supplemental amount is paid from the decedent's net probate estate and from recipients of nonprobate transfers to others according to the order of priority set forth in the applicable statutory provisions.
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The surplus stands in place of the foreclosed real estate and is applied first to junior liens and other interests terminated by the foreclosure in the order of their priority before any remainder reaches the holder of the equity of redemption.
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