creditors claims

Question 1

creditor claims order

Answer 1

if assets in the estate are not sufficient to pay all debts and claims against the estate, credits claimsa re paid in the following order:
1. expenses of administration
2. family allowance, exempt property, homestead allowance
3. funeral expenses up to 4k
4.debts and taxes due in va
5. debts incurred in a fiduciary capacity
6. debts for child support arrearages
7. debts and taxes due localities and municipal corporation of virginia
8. all other claims
all creditors in one class must be paid beforea ny payments can be made to creditors in succeeding classes

Question 2

abatement

Answer 2

if assets owned at death are not sufficient to pay all of testators debts and also satisfy all of the gifts made in testators will, absent a contrary provision will, source of payment claims is as follows:
-personal prop passing by intestacy
-personal prop in residuary
-general legacies, which abate pro rata
-specific and demonstrative bequests of personal prop
-if the personal prop is exhausted the real property abates in the same order