30-2487 Payment of claims; order. - Nebraska Statutes

30-2487. Payment ofclaims; order.(a) If the applicable assets ofthe estate are insufficient to pay all claims in full, the personal representativeshall make payment in the following order:(1) Costs and expenses of administration;(2) Reasonable funeral expenses;(3) Debts and taxes with preference under federal law;(4) Reasonable and necessary medical and hospital expensesof the last illness of the decedent, including compensation of persons attendingthe decedent and claims filed by the Department of Health and Human Servicespursuant to section 68-919;(5) Debts and taxes with preference under other laws of thisstate;(6) All other claims.(b) No preference shall be given in the payment of any claimover any other claim of the same class, and a claim due and payable shallnot be entitled to a preference over claims not due.(c) For purposesof this section and section 30-2485, costs and expenses of administrationincludes expenses incurred in taking possession or control of estate assetsand the management, protection, and preservation of the estate assets, expensesrelated to the sale of estate assets, and expenses in the day-to-day operationand continuation of business interests for the benefit of the estate. SourceLaws 1974, LB 354, § 165, UPC § 3-805; Laws 1975, LB 481, § 17; Laws 1994, LB 1224, § 40; Laws 1996, LB 1044, § 90; Laws 2006, LB 1248, § 53; Laws 2007, LB296, § 49; Laws 2009, LB35, § 21.