What Happens When an Estate Is Insolvent in Virginia?
Enter the estate's assets and the claims in each class of Virginia'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. Virginia then pays the claims in 10 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 outVa. Code § 64.2-528Verified Sep 23, 2026View source.
1. Costs and expenses of administrationVa. Code § 64.2-528(1)Verified Sep 23, 2026View source. 2. Allowances provided in Article 2 of Chapter 3 (Exempt Property and Allowances, § 64.2-309 et seq.)Va. Code § 64.2-528(2)Verified Sep 23, 2026View source. 3. Funeral expenses (not to exceed $5,000)Va. Code § 64.2-528(3)Verified Sep 23, 2026View source. 4. Debts and taxes with preference under federal lawVa. Code § 64.2-528(4)Verified Sep 23, 2026View source. 5. Medical and hospital expenses of the last illness, including compensation of attendants (not to exceed $4,000 for each hospital and nursing home and $550 for each person furnishing services or goods)Va. Code § 64.2-528(5)Verified Sep 23, 2026View source. 6. Debts and taxes due the CommonwealthVa. Code § 64.2-528(6)Verified Sep 23, 2026View source. 7. Debts due as trustee for persons under disabilities; as receiver or commissioner under decree of a Virginia court; as personal representative, guardian, conservator or committee qualified in Virginia; and for moneys collected for another and not paid overVa. Code § 64.2-528(7)Verified Sep 23, 2026View source. 8. Debts for child support arrearagesVa. Code § 64.2-528(8)Verified Sep 23, 2026View source. 9. Debts and taxes due localities and municipal corporations of the CommonwealthVa. Code § 64.2-528(9)Verified Sep 23, 2026View source. 10. All other claimsVa. Code § 64.2-528(10)Verified Sep 23, 2026View source.
In proportion to their amounts: each claim in the class receives the same share of what it is owedVa. Code § 64.2-529Verified Sep 23, 2026View source.
A executor is not personally liable for the decedent's debtsVa. Code § 11-2(3)Verified Sep 23, 2026View source. Virginia's statutes state no rule on the executor's personal liability for paying a later class before an earlier class is paid in full or distributing property to heirs while claims are unpaid.
A person named in the will files a written refusal with the court (Form CC-1608, Waiver of Qualification (MASTER 11/16); Va. Code § 64.2-500(A)). The writing is signed and acknowledged before a notary. Renunciation of Executor for Virginia
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