Page:United States Statutes at Large Volume 76A.djvu/719

–623– -623§ 1863. Proof of notice of settlement of account The account may not be allowed by the court until it is first proved that notice has been given as required by this chapter, and the decree shall show that the proof was made to the satisfaction of the court, and is conclusive evidence of the fact. § 1864. Accounts of deceased executor or administrator If an executor or administrator dies, his accounts may be presented by his personal representative to, and settled by, the court in which the estate of which he was executor or administrator was being administered. Upon petition of the successor of the deceased executor or administrator, the court may compel the personal representative of the deceased executor or administrator to render an account of the administration of his testator or intestate, and the court shall settle the account as in other cases. Subchapter IV—Payment of Debts, Expenses, and Charges § 1881. Order of payment of debts, expenses, and charges (a) The debts of the decedent, the expenses of administration, and the charges against the estate shall be paid in the following order: (1) expenses of administration; (•2) funeral expenses; (3) expenses of the last sickness; (4) family allowance; (5) debts due to the United States; (6) mortgages and other liens, in the order of their priority, as far as they may be paid out of the proceeds of the encumbered property; (7) judgments rendered against the decedent in his lifetime, in the order of their date; (8) all other demands against the estate. (b) The preference given in subsection (a) of this section to a mortgage or lien extends only to the proceeds of the property subject to the mortgage or lien. If the proceeds of the property are insufficient to pay the mortgage or lien, the part remaining unsatisfied shall be classed with general demands against the estate. § 1882. Time for payment generally As soon as he has sufficient funds in his hands, the executor or administrator shall pay the funeral expenses, the expenses of the last sickness, and the family allowance. He may retain in his hands the necessary expenses of administration. He is not obliged to pay any other debt or any legacy until, as prescribed by this subchapter, the payment has been ordered by the court. § 1883. Order for payment of debts; dividends; discharge if estate exhausted (a) Upon the settlement of an account of the executor or administrator rendered pursuant to section 1853(a) of this title after the time to file or present claims has expired, the court shall order the payment of the debts, as the circumstances of the estate permit. (b) If there are not sufficient funds in the hands of the executor or administrator to pay all the debts, the court shall specify in the decree the sum to be paid to each creditor. A creditor of one class may not receive any payment until all those of the preceding class are fully paid. If the estate is insufficient to pay all the debts of a class, each creditor of that class shall be paid a dividend in proportion to his claim. (c) If the property of the estate is exhausted by the payment ordered, the account shall be considered as a final account, and the

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