What Happens When an Estate Is Insolvent in Oregon?
Enter the estate's assets and the claims in each class of Oregon's payment order to see which claims are paid in full, which are paid in part, and which go unpaid, along with when the executor is personally liable.
Frequently Asked Questions
An estate is insolvent when the claims against it exceed the assets available to pay them. Oregon then pays the claims in 14 classes, in the order its statute sets, and the classes at the end of the order are the ones left unpaid when the money runs outORS 115.125Verified Sep 23, 2026View source.
1. Support of spouse and children (subject to ORS 114.065 limits)ORS 115.125(1)(a)Verified Sep 23, 2026View source. 2. Administration expenses (including court-authorized expenses of a protective proceeding for the decedent)ORS 115.125(1)(b)Verified Sep 23, 2026View source. 3. Expenses of a plain and decent funeralORS 115.125(1)(c)Verified Sep 23, 2026View source. 4. Debts and taxes with preference under federal lawORS 115.125(1)(d)Verified Sep 23, 2026View source. 5. Reasonable and necessary medical and hospital expenses of the last illnessORS 115.125(1)(e)Verified Sep 23, 2026View source. 6. State-preference taxes due while the personal representative holds the estateORS 115.125(1)(f)Verified Sep 23, 2026View source. 7. Debts owed employees for labor performed within 90 days before deathORS 115.125(1)(g)Verified Sep 23, 2026View source. 8. Child support arrearagesORS 115.125(1)(h)Verified Sep 23, 2026View source. 9. Department of Veterans' Affairs claims under ORS 406.100ORS 115.125(1)(i)Verified Sep 23, 2026View source. 10. DHS or OHA claims for the state Medicare Part D prescription drug contributionORS 115.125(1)(j)Verified Sep 23, 2026View source. 11. DHS or OHA claims for public and medical assistance paid (General Fund-funded assistance first, then state-and-federal-funded)ORS 115.125(1)(k)Verified Sep 23, 2026View source. 12. DHS or OHA claims for care and maintenance at a state institutionORS 115.125(1)(L)Verified Sep 23, 2026View source. 13. Department of Corrections claims for care and maintenance at a state institutionORS 115.125(1)(m)Verified Sep 23, 2026View source. 14. All other claimsORS 115.125(1)(n)Verified Sep 23, 2026View source.
In proportion to their amounts: each claim in the class receives the same share of what it is owedORS 115.125(2)Verified Sep 23, 2026View source.
Oregon's statutes state no rule on the personal representative's personal liability for the decedent's debts, paying a later class before an earlier class is paid in full or distributing property to heirs while claims are unpaid.
Oregon law recognizes that a person named as personal representative may refuse the appointment (ORS 113.085(1)) but prescribes no particular document. A signed written renunciation filed with the court states the refusal on the record. Renunciation of Executor for Oregon
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