700.3805 Priority of claim payments; insufficient assets.
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700.3805 Priority of claim payments; insufficient assets.
Sec. 3805.
(1)If the applicable estate property is insufficient to pay all claims and allowances in full, the personal representative shall make payment in the following order of priority:
(a)Costs and expenses of administration.
(b)Reasonable funeral and burial expenses.
(c)Homestead allowance.
(d)Family allowance.
(e)Exempt property.
(f)Debts and taxes with priority under federal law, including, but not limited to, medical assistance payments that are subject to adjustment or recovery from an estate under section 1917 of the social security act, 42 USC 1396p.
(g)Reasonable and necessary medical and hospital expenses of the decedent's last illness, including a compensation of persons attending the decedent.
(h)Debts and taxes with priority under other laws of this state.
(i)All other claims.
(2)A preference shall not be given in the payment of a claim over another claim of the same class, and a claim due and payable is not entitled to a preference over a claim not due.
(3)If there are insufficient assets to pay all claims in full or to satisfy homestead allowance, family allowance, and exempt property, the personal representative shall certify the amount and nature of the deficiency to the trustee of a trust described in section 7605(1) for payment by the trustee in accordance with section 7606. If the personal representative is aware of other nonprobate transfers that may be liable for claims and allowances, then, unless the will provides otherwise, the personal representative shall proceed to collect the deficiency in a manner reasonable under the circumstances so that each nonprobate transfer, including those made under a trust described in section 7605(1), bears a proportionate share or equitable share of the total burden.
History: 1998, Act 386 , Eff. Apr. 1, 2000 ;-- Am. 2000, Act 177 , Imd. Eff. June 20, 2000 ;-- Am. 2007, Act 73 , Imd. Eff. Sept. 30, 2007 ;-- Am. 2009, Act 46 , Eff. Apr. 1, 2010
Popular Name: EPIC