                                 CODE OF VIRGINIA

WHEN COURT TO ORDER PAYMENT OF DEBTS (§ 64.2-553)

A. Upon confirmation of a report of the accounts of any personal representative
and of the debts and demands against the decedent&#8217;s estate pursuant to
Chapter 12 (&#xA7; 64.2-1200 et seq.), the court shall order that so much of the
estate in the possession of the personal representative as is proper be applied
to the payment of such debts and demands. The court, in its discretion, may
order that a portion of the estate be reserved to pay all or a proportion of a
claim of a surety for the decedent or any other contingent claim against the
estate, or to pay all or a proportion of any other claim not finally passed
upon, provided that creditors of the same class shall be paid in the same
proportion.

B. For any claim allowed subsequent to any dividend where the court ordered that
a portion of the estate be reserved to pay such a claim, the court shall order
that the claim be paid from the estate in the possession of the personal
representative, regardless of the existence of any debt or demand of superior
dignity for which no reservation has been ordered. The claim shall be paid in
the same proportion as creditors of the same class, provided, however, that
whether there be enough reserved to pay the claim pursuant to this subsection
shall not affect any dividend already paid.

C. If there are assets remaining in the possession of the personal
representative after claims are paid pursuant to subsections A and B, or if
further assets come into the possession of the personal representative, such
surplus shall be divided among all the decedent&#8217;s creditors who have
proved debts and demands against the decedent&#8217;s estate in the order and
proportion in which they may be entitled.

HISTORY: Code 1950, §§ 64-164, 64-165, 64-166; 1968, c. 656, §§ 64.1-174,
64.1-175, 64.1-176; 2012, c. 614.