ORS 115.125
Order of payment of expenses and claims

(1)

If the applicable assets of the estate are insufficient to pay all expenses and claims in full, the personal representative shall make payment in the following order:

(a)

Support of spouse and children, subject to the limitations imposed by ORS 114.065 (Limitations on support).

(b)

Expenses of administration of the estate, and subject to preferences established under federal law, expenses of administration of any protective proceeding in which the decedent was the protected person authorized by the court in the protective proceeding.

(c)

Expenses of a plain and decent funeral.

(d)

Debts and taxes with preference under federal law.

(e)

Reasonable and necessary medical and hospital expenses of the last illness of the decedent, including compensation of persons attending the decedent to which the persons are otherwise entitled by law.

(f)

Taxes with preference under the laws of this state that are due and payable while possession of the estate of the decedent is retained by the personal representative.

(g)

Debts owed employees of the decedent for labor performed within 90 days immediately preceding the date of death of the decedent.

(h)

Child support arrearages.

(i)

The claim of the Department of Veterans’ Affairs under ORS 406.100 (Claims against estate by department), including a claim the waiver of which was retracted by the Director of Veterans’ Affairs under ORS 406.110 (Waiver of claims).

(j)

The claim of the Department of Human Services or the Oregon Health Authority for the amount of the state’s monthly contribution to the federal government to defray the costs of outpatient prescription drug coverage provided to a person who is eligible for Medicare Part D prescription drug coverage and who receives benefits under the state medical assistance program or Title XIX of the Social Security Act.

(k)

The claim of the Department of Human Services or the Oregon Health Authority for the net amount of assistance properly or improperly paid to or for the decedent, in the following order:

(A)

Public assistance, as defined in ORS 411.010 (Definitions), and medical assistance, as defined in ORS 414.025 (Definitions for ORS chapters 411, 413 and 414), funded entirely by moneys from the General Fund; and

(B)

Public assistance, as defined in ORS 411.010 (Definitions), and medical assistance, as defined in ORS 414.025 (Definitions for ORS chapters 411, 413 and 414), funded by a combination of state and federal funds.

(L)

The claim of the Department of Human Services or the Oregon Health Authority for the care and maintenance of the decedent at a state institution, as provided in ORS 179.610 (Definitions for ORS 179.610 to 179.770) to 179.770 (Rules).

(m)

The claim of the Department of Corrections for care and maintenance of any decedent who was at a state institution to the extent provided in ORS 179.610 (Definitions for ORS 179.610 to 179.770) to 179.770 (Rules).

(n)

All other claims against the estate.

(2)

If the applicable assets of the estate are insufficient to pay in full all expenses or claims of any one class specified in subsection (1) of this section, each expense or claim of that class shall be paid only in proportion to the amount thereof. [1969 c.591 §152; 1969 c.597 §279; 1973 c.402 §32; 1979 c.684 §17; 2001 c.316 §1; 2001 c.487 §13; 2001 c.900 §19a; 2005 c.754 §3; 2007 c.26 §1; 2009 c.595 §81; 2011 c.720 §60; 2013 c.190 §1; 2013 c.688 §19; 2016 c.42 §23; 2017 c.169 §30]

Source: Section 115.125 — Order of payment of expenses and claims, https://www.­oregonlegislature.­gov/bills_laws/ors/ors115.­html.

Notes of Decisions

Secured creditor’s reliance on security interest in property is not claim against estate and therefore is not subject to pro rata distribution. Heiller v. Nelson, 127 Or App 189, 872 P2d 26 (1994)

Provision allowing agency claim for payment of “net amount of public assistance” does not preclude collection of interest on debt due. Thomas v. Senior and Disabled Services Division, 319 Or 520, 878 P2d 1081 (1994)

Law Review Citations

26 WLR 284 (1990)

Green check means up to date. Up to date

Current through early 2024

§ 115.125’s source at oregon​.gov