Oregon Revised Statutes

Or. Rev. Stat. § 115.125 (2026)

Order of payment of expenses and claims

✓ current as of May 2026
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      115.125 Order of payment of expenses and claims. (1) If the applicable assets of the estate are insufficient to pay all expenses and claims in full, the personal representative shall make payment in the following order:

      (a) Support of spouse and children, subject to the limitations imposed by ORS 114.065.

      (b) Expenses of administration of the estate, and subject to preferences established under federal law, expenses of administration of any protective proceeding in which the decedent was the protected person authorized by the court in the protective proceeding.

      (c) Expenses of a plain and decent funeral.

      (d) Debts and taxes with preference under federal law.

      (e) Reasonable and necessary medical and hospital expenses of the last illness of the decedent, including compensation of persons attending the decedent to which the persons are otherwise entitled by law.

      (f) Taxes with preference under the laws of this state that are due and payable while possession of the estate of the decedent is retained by the personal representative.

      (g) Debts owed employees of the decedent for labor performed within 90 days immediately preceding the date of death of the decedent.

      (h) Child support arrearages.

      (i) The claim of the Department of Veterans’ Affairs under ORS 406.100, including a claim the waiver of which was retracted by the Director of Veterans’ Affairs under ORS 406.110.

      (j) The claim of the Department of Human Services or the Oregon Health Authority for the amount of the state’s monthly contribution to the federal government to defray the costs of outpatient prescription drug coverage provided to a person who is eligible for Medicare Part D prescription drug coverage and who receives benefits under the state medical assistance program or Title XIX of the Social Security Act.

      (k) The claim of the Department of Human Services or the Oregon Health Authority for the net amount of assistance properly or improperly paid to or for the decedent, in the following order:

      (A) Public assistance, as defined in ORS 411.010, and medical assistance, as defined in ORS 414.025, funded entirely by moneys from the General Fund; and

      (B) Public assistance, as defined in ORS 411.010, and medical assistance, as defined in ORS 414.025, funded by a combination of state and federal funds.

      (L) The claim of the Department of Human Services or the Oregon Health Authority for the care and maintenance of the decedent at a state institution, as provided in ORS 179.610 to 179.770.

      (m) The claim of the Department of Corrections for care and maintenance of any decedent who was at a state institution to the extent provided in ORS 179.610 to 179.770.

      (n) All other claims against the estate.

      (2) If the applicable assets of the 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. [1969 c.591 §152; 1969 c.597 §279; 1973 c.402 §32; 1979 c.684 §17; 2001 c.316 §1; 2001 c.487 §13; 2001 c.900 §19a; 2005 c.754 §3; 2007 c.26 §1; 2009 c.595 §81; 2011 c.720 §60; 2013 c.190 §1; 2013 c.688 §19; 2016 c.42 §23; 2017 c.169 §30]

 

      115.130 [Repealed by 1969 c.591 §305]

Notes of Decisions
Cited in 8 cases, 1986–2020 · leading case: Thomas v. State ex rel. Senior & Disabled Servs. Div., 878 P.2d 1081 (Or. 1994).
Thomas v. State ex rel. Senior & Disabled Servs. Div., 878 P.2d 1081 (Or. 1994). · cites it 6× “005(2), the personal representative * * * shall proceed to pay the claims allowed against the estate in the priority prescribed by ORS 115.125.” The personal representative has no duty to pay the state’s claim before the time provided in ORS 115.”
Thomas v. Senior & Disabled Serv. Div., 878 P.2d 1081 (Or. 1994). · cites it 6× “005(2), the personal representative * * * shall proceed to pay the claims allowed against the estate in the priority prescribed by ORS 115.125." The personal representative has no duty to pay the state's claim before the time provided in ORS 115.”
Widing v. Est. of Widing, 944 P.2d 969 (Or. Ct. App. 1997). “See ORS 115.125 (expenses of administration are to be paid before claims against the estate are paid).”
Credit Assocs., Inc. v. Blevins (Bankr. D. Or. 2020). · cites it 2× “63 ORS 115.125(1)(a), (e) (2017). 64 ORS 115.”
Heiller v. Nelson, 872 P.2d 26 (Or. Ct. App. 1994). · cites it 5× “” Claims presented to the personal representative are subject to the pro rata distribution plan of ORS 115.125. However, secured claims that are not presented can be satisfied pursuant to ORS 115.”
Jones v. Hunt, 206 P.3d 1202 (Or. Ct. App. 2009). · cites it 2× “The court allowed both Howard’s and Jones’s claims in full, with distribution apportioned pursuant to ORS 115.125(2). 1 The personal representative filed a petition for an order discharging the personal representative and closing the estate, and gave notice of the petition to…”
Givan v. State (In re Est. of Nelson), 410 P.3d 311 (Or. Ct. App. 2017). “ORS 115.125(1)(b). Nothing further occurred in the small estate proceeding.”
Est. of Elrod v. State ex rel. Adult & Fam. Servs. Div., 714 P.2d 1116 (Or. Ct. App. 1986). “See ORS 115.125. We agree. Reversed and remanded.”
— Or. Rev. Stat. § 115.125(1) — 2 cases
Thomas v. State ex rel. Senior & Disabled Servs. Div., 878 P.2d 1081 (Or. 1994). “005(2), the personal representative * * * shall proceed to pay the claims allowed against the estate in the priority prescribed by ORS 115.125.” The personal representative has no duty to pay the state’s claim before the time provided in ORS 115.”
Thomas v. Senior & Disabled Serv. Div., 878 P.2d 1081 (Or. 1994). “005(2), the personal representative * * * shall proceed to pay the claims allowed against the estate in the priority prescribed by ORS 115.125." The personal representative has no duty to pay the state's claim before the time provided in ORS 115.”
— Or. Rev. Stat. § 115.125(1)(a) — 1 case
Credit Assocs., Inc. v. Blevins (Bankr. D. Or. 2020). “63 ORS 115.125(1)(a), (e) (2017). 64 ORS 115.”
— Or. Rev. Stat. § 115.125(1)(b) — 1 case
Givan v. State (In re Est. of Nelson), 410 P.3d 311 (Or. Ct. App. 2017). “ORS 115.125(1)(b). Nothing further occurred in the small estate proceeding.”
— Or. Rev. Stat. § 115.125(1)(h) — 1 case
Thomas v. Senior & Disabled Serv. Div., 878 P.2d 1081 (Or. 1994). “005(2), the personal representative * * * shall proceed to pay the claims allowed against the estate in the priority prescribed by ORS 115.125." The personal representative has no duty to pay the state's claim before the time provided in ORS 115.”
— Or. Rev. Stat. § 115.125(1)(n) — 1 case
Credit Assocs., Inc. v. Blevins (Bankr. D. Or. 2020). “63 ORS 115.125(1)(a), (e) (2017). 64 ORS 115.”
— Or. Rev. Stat. § 115.125(2) — 2 cases
Jones v. Hunt, 206 P.3d 1202 (Or. Ct. App. 2009). “The court allowed both Howard’s and Jones’s claims in full, with distribution apportioned pursuant to ORS 115.125(2). 1 The personal representative filed a petition for an order discharging the personal representative and closing the estate, and gave notice of the petition to…”
Heiller v. Nelson, 872 P.2d 26 (Or. Ct. App. 1994). “” Claims presented to the personal representative are subject to the pro rata distribution plan of ORS 115.125. However, secured claims that are not presented can be satisfied pursuant to ORS 115.”
— Or. Rev. Stat. § 115.125(l)(h) — 1 case
Thomas v. State ex rel. Senior & Disabled Servs. Div., 878 P.2d 1081 (Or. 1994). “005(2), the personal representative * * * shall proceed to pay the claims allowed against the estate in the priority prescribed by ORS 115.125.” The personal representative has no duty to pay the state’s claim before the time provided in ORS 115.”
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