55-64 - Disposition of surplus from trustee's sale after death of grantor. - Virginia Statutes

§ 55-64. Disposition of surplus from trustee's sale after death of grantor.

Whenever the grantor, or his successor in title, in any deed of trust bywhich any real property is conveyed in trust to secure debts or indemnifysureties dies prior to a trustee's sale held pursuant to the deed of trustand the deed of trust contains no definite provision for the distribution ofany surplus in the event of the death of the grantor or his successors intitle prior to the trustee's sale held pursuant to the deed of trust, orcontains a provision that such surplus shall be paid to the grantor or hisheirs or assigns or personal representative, then any surplus of the proceedsof the sale remaining in the hands of the trustee, after discharging theexpenses of executing the trust, all tax liens upon the property sold, andall debts and obligations secured by the deed of trust, shall be paid by thetrustee to the personal representative of the decedent.

Any funds so coming into the hands of the personal representative shallconstitute assets for the payment by him first, of all existing liens againstthe property foreclosed which are subsequent to the deed of trust under whichthe trustee sells in the order of their priority, and secondly, of any debtsand demands against the decedent's estate remaining unsatisfied after thepersonal estate has been exhausted. Any surplus of the funds so paid to thepersonal representative and remaining in his hands after the satisfaction ofall debts and demands against the estate shall be paid over by him, if thedecedent died intestate as to the real property embraced in the deed oftrust, to the heirs at law of the decedent, or their successors in title, andif the decedent died testate as to the real property embraced in the deed oftrust, then such surplus shall be paid to the persons entitled to the realproperty under the terms of the decedent's will, or to their successors intitle.

(1942, p. 94; Michie Code 1942, § 5167d; 1944, p. 389; 1990, c. 831.)