Disclaimer: This article is for educational purposes and does not constitute legal advice. Always consult a licensed attorney in Oregon for guidance.
Detailed Answer
When you serve as an executor (known in Oregon as a personal representative), you must confirm that the estate holds or can liquidate sufficient assets before settling any creditor claim. Oregon law requires orderly payment of creditor claims in priority order. Under ORS 115.005, creditors fall into classes that must be paid in sequence: funeral expenses, last illness costs, administration expenses, family allowances, taxes, and general claims. You cannot pay lower-priority claims if higher-priority obligations remain unpaid.
To confirm availability, prepare an accurate inventory of estate assets, including bank accounts, real property, and personal property. You must file this inventory with the court under ORS 116.053. Compare the total liquid assets to the sum of approved claims in each priority class. If funds are insufficient, you may need to sell assets or seek court guidance to determine which claims the estate can satisfy. Paying a creditor without sufficient estate funds may expose you to personal liability.
Before approving a claim, verify the creditor’s proof of claim form, due under ORS 115.027, and confirm the claim’s validity. Only then should you schedule payment from the estate’s available assets.
Key Statutes
- ORS 115.005 (Priority of claims)
- ORS 116.053 (Duty to inventory and appraisal)
- ORS 115.027 (Proof of claims)
Helpful Hints
- Review the estate’s bank statements and appraisals before paying creditors.
- Keep detailed records of all payments and inventory updates.
- Consider consulting an Oregon probate attorney if complex assets or disputes arise.
- File a complete inventory with the probate court under ORS 116.053.
- Follow the priority order under ORS 115.005 to avoid personal liability.