Insolvent Probate Estate Claim-Payment Priority in North Dakota

At a glance

Requirements one by one

Seven claim classes

Under § 30.1-19-05(1), administration costs lead, followed by reasonable funeral expenses and federally preferred debts and taxes. Reasonable and necessary medical and hospital expenses of the decedent's last illness, including attendants' compensation, are fourth. Child support due and unpaid before death is fifth; debts and taxes preferred by other North Dakota law are sixth; all other claims are seventh.

Allowances outside the claim ladder

Under § 30.1-07-01, exempt property and assets needed to make up its deficiency have priority over claims, but deficiency assets yield to earlier homestead and family allowance payments. The family allowance outranks claims except the homestead allowance under § 30.1-07-02. The representative provides for homestead, family, and support allowances before paying allowed claims under § 30.1-19-07(1).

Secured claims

Under § 30.1-19-09, a creditor surrendering security uses the full allowed amount for payment. Otherwise, the security's fair or determined value is deducted under the statute's two valuation routes.

What trips people up

Section 30.1-19-05(2) bars same-class preference, including for a currently due claim over an unmatured one. Section 30.1-19-07(2) permits early payment of a just unbarred claim but can impose personal liability when the stated early-payment or fault conditions injure another allowed claimant.

Common questions

Does child support rank with ordinary debts? Section 30.1-19-05(1)(e) places only obligations due and unpaid before death in class five.

Are funeral and last-illness costs together? Section 30.1-19-05(1)(b),(d) separates them into classes two and four.

Statutes and sources

• N.D. Cent. Code §§ 30.1-19-05, -07, -09 and 30.1-07-01–02. Verbatim official text, section URLs, and access dates appear in the source fields above.