ORS Chapter 116
Chapter 116 — Accounting,Distribution and Closing
2009 EDITION
ACCOUNTING,DISTRIBUTION AND CLOSING
PROBATELAW
ALLOCATIONOF INCOME
116.007 Allocationof income
PARTIALDISTRIBUTION
116.013 Petitionand order for partial distribution
116.023 Bondor other security
116.033 Dischargeof personal representative
116.043 Petitionand order for refund by distributee
ACCOUNTINGAND DISTRIBUTION
116.063 Liabilityof personal representative
116.073 Nonliabilityof personal representative
116.083 Accountingby personal representative; rules
116.093 Noticefor filing objections to final account and petition for distribution
116.103 Objectionsto final account and petition
116.113 Judgmentof final distribution
116.123 Effectof approval of final account
116.133 Distribution;order in which assets appropriated; abatement
116.143 Intereston pecuniary devises
116.153 Rightof offset and retainer
116.163 Distributionto foreign personal representative
116.173 Compensationof personal representative
116.183 Expensesof personal representative; determination of attorney fees
116.193 Orderof escheat
116.203 Dispositionof unclaimed assets
116.213 Dischargeof personal representative
116.223 Recordingof personal representative’s deed in other counties
116.233 Reopeningestate of decedent
116.243 Reportsby court clerks, county clerks or court administrators to Department of StateLands
116.253 Recoveryof escheated property
116.263 Paymentof debt and delivery of property to foreign personal representative withoutlocal administration
APPORTIONMENTOF ESTATE TAXES
116.303 Definitionsfor ORS 116.303 to 116.383
116.313 Apportionmentamong interested persons; valuations; testamentary apportionment
116.323 Apportionmentproceedings; equitable apportionment; penalties and interest; courtdetermination
116.333 Withholdingof tax; recovery from distributee; bond of distributee
116.343 Allowancesfor exemptions, deductions and credits
116.353 Incomeinterests; life or temporary interests; charging corpus
116.363 Proceedingsfor recovery of tax; liability of personal representative; apportionment ofamount not recovered
116.373 Foreignpersonal representatives and estates
116.383 Construction
ALLOCATIONOF INCOME
116.003 [1969 c.591 §168;1973 c.506 §36; repealed by 1975 c.717 §14 (116.007 enacted in lieu of116.003)]
116.005 [Repealed by1969 c.591 §305]
116.007Allocation of income.(1) Unless the will otherwise provides and subject to subsection (2) of thissection, all expenses incurred in connection with the settlement of a decedent’sestate, including debts, funeral expenses, estate taxes, interest and penaltiesconcerning taxes, family allowances, fees of attorneys and personalrepresentatives and court costs, shall be charged against the principal of theestate.
(2)Unless the will otherwise provides, income from the assets of a decedent’sestate after the death of the testator and before distribution, includingincome from property used to discharge liabilities, shall be determined inaccordance with the rules applicable to a trustee under ORS chapter 129 andthis section and distributed as follows:
(a)To specific legatees and devisees, the income from the property bequeathed ordevised to them respectively, less taxes, ordinary repairs, and other expensesof management and operation of the property, and an appropriate portion ofinterest accrued since the death of the testator and of taxes imposed onincome, excluding taxes on capital gains, that accrue during the period of administration.
(b)To all other legatees and devisees, except legatees of pecuniary bequests thatare not in trust and that do not qualify for the marital deduction provided forin section 2056 of the Internal Revenue Code (26 U.S.C. 2056), the balance ofthe income, less the balance of taxes, ordinary repairs, and other expenses ofmanagement and operation of all property from which the estate is entitled toincome, interest accrued since the death of the testator, and taxes imposed onincome, excluding taxes on capital gains, that accrue during the period ofadministration, in proportion to their respective interests in theundistributed assets of the estate computed at times of distribution on thebasis of inventory value.
(3)Income received by a trustee under subsection (2) of this section shall betreated as income of the trust. [1975 c.717 §15 (enacted in lieu of 116.003);2003 c.279 §33; 2005 c.22 §94; 2007 c.71 §29]
116.010 [Repealed by1969 c.591 §305]
PARTIALDISTRIBUTION
116.013Petition and order for partial distribution. Upon petition by the personalrepresentative or other interested person, and after such notice and hearing asthe court may prescribe, the court may order the personal representative todistribute, prior to final settlement and distribution, property of the estateto the person or persons who would be entitled to the property under the willor under intestate succession on final distribution, if the court finds that:
(1)After the distribution sufficient assets will remain to pay support of spouseand children, expenses of administration, unpaid claims and all known unpaidcreditors of the decedent or of the estate; and
(2)The distribution may be made without loss to creditors or injury to the estateor to any interested person. [1969 c.591 §169; 1987 c.646 §1]
116.015 [Repealed by1969 c.591 §305]
116.020 [Amended by1957 c.352 §1; repealed by 1969 c.591 §305]
116.023Bond or other security. The court may require a bond or other security ofany distributee for the protection of creditors and other interested personswho might suffer loss or injury because of the distribution of property underORS 116.013. [1969 c.591 §170]
116.025 [Repealed by1969 c.591 §305]
116.033Discharge of personal representative. The distribution of property inaccordance with the order of the court under ORS 116.013 is a full discharge ofthe personal representative in respect to all property embraced in the order,except as otherwise provided in ORS chapters 111, 112, 113, 114, 115, 116 and117. [1969 c.591 §171]
116.043Petition and order for refund by distributee. If, after the distribution ofproperty under ORS 116.013, it appears that all or any part of the propertydistributed is required for the payment of claims and expenses of administration,including determined and undetermined state and federal tax liability, thepersonal representative shall petition the court to order the return of theproperty. Notice of the hearing on the petition shall be given as provided inORS 111.215. Upon the hearing the court may order the distributee to return theproperty distributed or any part thereof, or to pay its value as of the time ofdistribution, and may specify the time within which the return or payment mustbe made. If the property is not returned or the payment is not made within thetime ordered, the person failing to return the property or pay the value may beadjudged in contempt of court and judgment may be entered against the personand the sureties of the person, if any. [1969 c.591 §172]
ACCOUNTINGAND DISTRIBUTION
116.063Liability of personal representative. A personal representative may be liablefor and is chargeable in the accounts of the personal representative with:
(1)All of the estate of the decedent that comes into the possession of thepersonal representative at any time, including the income therefrom.
(2)All property not a part of the estate if:
(a)The personal representative has commingled the property with the assets of theestate; or
(b)The property was received under a duty imposed on the personal representativeby law in the capacity of personal representative.
(3)Any loss to the estate arising from:
(a)Neglect or unreasonable delay in collecting the assets of the estate.
(b)Neglect in paying over money or delivering property of the estate.
(c)Failure to pay taxes as required by law or to close the estate within areasonable time.
(d)Embezzlement or commingling of the assets of the estate with other property.
(e)Unauthorized self-dealing.
(f)Wrongful acts or omissions of copersonal representatives that the personalrepresentative could have prevented by the exercise of ordinary care.
(g)Any other negligent or willful act or nonfeasance in the administration of theestate by which loss to the estate arises. [1969 c.591 §173]
116.073Nonliability of personal representative. A personal representative is not liablefor or chargeable in the accounts of the personal representative with:
(1)Debts due the decedent or other assets of the estate that remain uncollectedwithout the fault of the personal representative.
(2)Loss by the decrease in value or destruction of property of the estate if theloss is caused without the fault of the personal representative. [1969 c.591 §174]
116.083Accounting by personal representative; rules. (1) A personal representativeshall make and file in the estate proceeding an account of the personalrepresentative’s administration:
(a)Unless the court orders otherwise, annually within 60 days after the anniversarydate of the personal representative’s appointment.
(b)Within 30 days after the date of the personal representative’s removal orresignation or the revocation of the personal representative’s letters.
(c)When the estate is ready for final settlement and distribution.
(d)At such other times as the court may order.
(2)Each account must include the following information:
(a)The period of time covered by the account.
(b)The total value of the property with which the personal representative is chargeableaccording to the inventory, or, if there was a prior account, the amount of thebalance of the prior account.
(c)All money and property received during the period covered by the account.
(d)All disbursements made during the period covered by the account. Vouchers fordisbursements must accompany the account, unless otherwise provided by order orrule of the court, or unless the personal representative is a trust companythat has complied with ORS 709.030, but that personal representative shall:
(A)Maintain the vouchers for a period of not less than one year following the dateon which the order approving the final account is entered;
(B)Permit interested persons to inspect the vouchers and receive copies thereof attheir own expense at the place of business of the personal representativeduring the personal representative’s normal business hours at any time prior tothe end of the one-year period following the date on which the order approvingthe final account is entered; and
(C)Include in each annual account and in the final account a statement that thevouchers are not filed with the account but are maintained by the personalrepresentative and may be inspected and copied as provided in subparagraph (B)of this paragraph.
(e)The money and property of the estate on hand.
(f)Such other information as the personal representative considers necessary toshow the condition of the affairs of the estate or as the court may require.
(g)A declaration under penalty of perjury in the form required by ORCP 1 E.
(3)When the estate is ready for final settlement and distribution, the accountmust also include:
(a)A statement that all Oregon income, inheritance and personal property taxes, ifany, have been paid, or if not so paid, that payment of those taxes has beensecured by bond, deposit or otherwise, and that all required tax returns havebeen filed.
(b)A petition for a judgment authorizing the personal representative to distributethe estate to the persons and in the portions specified therein.
(4)If the distributees consent thereto in writing and all creditors of the estatehave been paid in full other than creditors owed administrative expenses thatrequire court approval, the personal representative, in lieu of the finalaccount otherwise required by this section, may file a statement that includesthe following:
(a)The period of time covered by the statement.
(b)A statement that all creditors have been paid in full other than creditors owedadministrative expenses that require court approval.
(c)The statement and petition referred to in subsection (3) of this section.
(d)A declaration under penalty of perjury in the form required by ORCP 1 E.
(5)Notice of time for filing objections to the statement described in subsection(4) of this section is not required.
(6)The Chief Justice of the Supreme Court may by rule specify the form andcontents of accounts that must be filed by a personal representative. [1969c.591 §175; 1973 c.506 §37; 1985 c.304 §1; 1995 c.453 §2; 1997 c.631 §405; 1999c.592 §2; 2003 c.576 §375; 2005 c.22 §95; 2005 c.123 §1; 2007 c.284 §2]
116.093Notice for filing objections to final account and petition for distribution. (1) Upon filingthe final account and petition for a judgment of distribution, the personalrepresentative shall fix a time for filing objections thereto in a noticethereof. Not less than 20 days before the time fixed in the notice, thepersonal representative shall cause a copy of the notice to be mailed to:
(a)Each heir at the last-known address of the heir, if the decedent diedintestate.
(b)Each devisee at the last-known address of the devisee, if the decedent diedtestate.
(c)Each creditor who has not received payment in full and whose claim has nototherwise been barred.
(d)Any other person known to the personal representative to have or to claim aninterest in the estate being distributed.
(2)The notice need not be mailed to the personal representative.
(3)Proof of the mailing to those persons entitled to notice shall be filed in theestate proceeding at or before approval of the final account.
(4)If the Department of Human Services has presented a claim under ORS chapter 411or ORS 416.310 to 416.340 or 417.010 to 417.080, or the Oregon Health Authorityhas presented a claim under ORS chapter 414 or ORS 416.310 to 416.340 or416.510 to 416.990, or the Department of Corrections has presented a claimunder ORS 179.620 (3), and the claim has not been settled or paid in full, thepersonal representative shall mail to the appropriate department a copy of thefinal account at the same time, and shall make proof of the mailing in the samemanner, as the notice provided for in this section. [1969 c.591 §176; 1969c.597 §280; 1989 c.348 §14; 2001 c.487 §14; 2001 c.900 §20a; 2003 c.576 §376;2005 c.381 §21; 2007 c.284 §13; 2009 c.595 §82]
116.103Objections to final account and petition. Any person entitled to noticeunder ORS 116.093 may, within the time fixed for the filing, file in the estateproceeding objections to the final account and petition for distribution,specifying the particulars of the objections. Upon the filing of objections thecourt shall fix the time for hearing thereon. [1969 c.591 §177]
116.105 [Repealed by1969 c.591 §305]
116.110 [Repealed by1969 c.591 §305]
116.113Judgment of final distribution. (1) If no objections to the finalaccount and petition for distribution are filed, or if objections are filed,upon the hearing, the court shall enter a general judgment of finaldistribution. In the judgment the court shall designate the persons in whomtitle to the estate available for distribution is vested and the portion of theestate or property to which each is entitled under the will, by agreementapproved by the court or pursuant to intestate succession. The judgment shallalso contain any findings of the court in respect to:
(a)Advancements.
(b)Election against will by the surviving spouse.
(c)Renunciation.
(d)Lapse.
(e)Adjudicated controversies.
(f)Partial distribution, which shall be confirmed or modified.