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Texas Probate Code - Section 320. Order Of Payment Of Claims And Allowances

Legal Research Home > Texas Laws > Probate Code > Texas Probate Code - Section 320. Order Of Payment Of Claims And Allowances

§ 320. ORDER OF PAYMENT OF CLAIMS AND ALLOWANCES.  (a) 
Priority of Payments.  Personal representatives, when they have 
funds in their hands belonging to the estate, shall pay in the 
following order:
	(1)  Funeral expenses and expenses of last sickness, in an 
amount not to exceed Fifteen Thousand Dollars.
	(2)  Allowances made to the surviving spouse and children, or 
to either.     
	(3)  Expenses of administration and the expenses incurred in 
the preservation, safekeeping, and management of the estate.
	(4)  Other claims against the estate in the order of their 
classification.   
	(b)  Sale of Mortgaged Property.  If a personal 
representative has the proceeds of a sale that has been made for the 
satisfaction of a mortgage, lien, or security interest, and the 
proceeds, or any part of the proceeds, are not required for the 
payment of any debts against the estate that have a preference over 
the mortgage, lien, or security interest, the personal 
representative shall pay the proceeds to any holder of a mortgage, 
lien, or security interest.  If there is more than one mortgage, 
lien, or security interest against the property, the personal 
representative shall pay the holders in the order of the holders' 
priority.  If the personal representative fails to pay proceeds 
under this subsection, a holder, on proof of the failure to pay, may 
obtain an order from the court directing the payment to be made.
	(c)  Claimant's Petition.  A claimant whose claim has not 
been paid may petition the court for determination of his claim at 
any time before it is barred by the applicable statute of 
limitations and upon due proof procure an order for its allowance 
and payment from the estate.
	(d)  Permissive Order of Payment.  After the sixth month 
after the date letters are granted and on application by the 
personal representative stating that the personal representative 
has no actual knowledge of any outstanding enforceable claims 
against the estate other than the claims already approved and 
classified by the court, the court may order the personal 
representative to pay any claim that is allowed and approved.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.  Amended by 
Acts 1975, 64th Leg., p. 1818, ch. 554, § 1, eff. Sept. 1, 1975;  
Acts 1977, 65th Leg., p. 352, ch. 173, § 1, eff. Aug. 29, 1977;  
Acts 1979, 66th Leg., p. 1876, ch. 758, § 1, eff. Aug. 27, 1979.  
Amended by Acts 1987, 70th Leg., ch. 461, § 2, eff. Sept. 1, 
1987;  Acts 1993, 73rd Leg., ch. 957, § 56, eff. Sept. 1, 1993;  
Acts 1995, 74th Leg., ch. 1054, § 21, eff. Jan. 1, 1996;  Acts 
1997, 75th Leg., ch. 540, § 4, eff. Sept. 1, 1997;  Acts 1997, 
75th Leg., ch. 1361, § 1, eff. Sept. 1, 1997.

Last modified: August 11, 2007