§ 28A-19-6. Order of payment of claims.
§ 28A‑19‑6. Orderof payment of claims.
(a) After payment ofcosts and expenses of administration, the claims against the estate of adecedent must be paid in the following order:
First class. Claims which bylaw have a specific lien on property to an amount not exceeding the value ofsuch property.
Second class. Funeral expensesto the extent of three thousand five hundred dollars ($3,500). This limitationshall not include burial place or gravestone. The preferential limitationherein granted shall be construed to be only a limit with respect to preferenceof payment and shall not be construed to be a limitation on reasonable funeralexpenses which may be incurred; nor shall the preferential limitation ofpayment in the amount of three thousand five hundred dollars ($3,500) bediminished by any Veterans Administration, social security or other federalgovernmental benefits awarded to the estate of the decedent or to his or herbeneficiaries.
Third class. Costs associatedwith gravestones and reasonable costs for the purchase of a suitable burialplace as provided in G.S. 28A‑19‑9 to the extent of one thousandfive hundred dollars ($1,500). The preferential limitation herein granted shallbe construed to be only a limit with respect to preference of payment and shallnot be construed to be a limitation on reasonable gravestone or burial placeexpenses which may be incurred; nor shall the preferential limitation ofpayment in the amount of one thousand five hundred dollars ($1,500) bediminished by any Veterans Administration, social security or other federalgovernmental benefits awarded to the estate of the decedent or to his or herbeneficiaries.
Fourth class. All dues, taxes,and other claims with preference under the laws of the United States.
Fifth class. All dues, taxes,and other claims with preference under the laws of the State of North Carolinaand its subdivisions.
Sixth class. Judgments of anycourt of competent jurisdiction within the State, docketed and in force, to theextent to which they are a lien on the property of the decedent at his death.
Seventh class. Wages due toany employee employed by the decedent, which claim for wages shall not extendto a period of more than 12 months next preceding the death; or if suchemployee was employed for the year current at the decease, then from the timeof such employment; for medical services within the 12 months preceding thedecease; for drugs and all other medical supplies necessary for the treatmentof such decedent during the last illness of such decedent, said period of lastillness not to exceed 12 months.
Eighth class. A claim forequitable distribution.
Ninth class. All other claims.
(b) Notwithstandingsubsection (a) of this section, if payment of the commissions of the personalrepresentative under G.S. 28A‑23‑3(g) would cause the estate to beunable to pay all claims against the estate of a decedent, then the commissionsshall be limited to the amount allowed under G.S. 28A‑23‑3(a). (1868‑9, c. 113, s.24; Code, s. 1416; Rev., s. 87; C.S., s. 93; 1941, c. 271; 1955, c. 641, s. 1;1967, c. 1066; 1973, c. 1329, s. 3; 1981, c. 383, ss. 1, 2; 1987, c. 286; 1995,c. 262, s. 8; 2005‑180, s. 1; 2005‑388, s. 2; 2009‑288, s.1.)