(1) Claims allowed against the trust estate under ORS 130.350 to 130.450 must be paid by the trustee in the following order of priority:
(a) Expenses of administering the trust estate.
(b) Expenses of a plain and decent funeral and disposition of the remains of the settlor.
(c) Debts and taxes with preference under federal law.
(d) Reasonable and necessary medical and hospital expenses of the last illness of the settlor, including compensation of persons attending the settlor.
(e) Taxes with preference under the laws of this state that are due and payable while possession of the trust estate of the settlor is retained by the trustee.
(f) Debts owed employees of the settlor for labor performed within 90 days immediately preceding the date of death of the settlor.
(g) Child support arrearages.
(h) A claim of the Department of Human Services for the net amount of public assistance, as defined in ORS 411.010, paid to or for the settlor, and the claim of the department for care and maintenance of any settlor who was at a state institution to the extent provided in ORS 179.610 to 179.770.
(i) All other claims against the trust estate.
(2) If the assets of the trust 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. [Formerly 128.290]
Section: Previous 130.390 130.395 130.400 130.405 130.410 130.415 130.420 130.425 130.430 130.435 130.440 130.445 130.450 130.500 130.505 NextLast modified: August 7, 2008