6.2-611 - (Effective October 1, 2010) Liability of surviving party for debts and other liabilities of decedent's estate. - Virginia Statutes

§ 6.2-611. (Effective October 1, 2010) Liability of surviving party for debtsand other liabilities of decedent's estate.

A. If the assets of a deceased party's estate, other than the assets in amultiple-party account, are not sufficient to pay the debts, taxes, andexpenses of estate administration, including statutory allowances to thesurviving spouse, minor children, and dependent children, no transfer ofaccount funds, to which the deceased party was beneficially entitledimmediately before his death, shall be effective, by virtue of a party'ssurvivorship of the decedent, against the estate of such deceased party tothe extent such funds are needed to pay such liabilities of the estate.

B. A surviving party, P.O.D. payee, or beneficiary who receives payment froma multiple-party account after the death of a deceased party shall be liableto account to his personal representative for amounts the decedent ownedbeneficially immediately before his death to the extent necessary todischarge the claims and charges described in subsection A that remain unpaidafter application of the decedent's estate. No proceeding to assert thisliability shall be commenced (i) unless the personal representative hasreceived a written demand by a surviving spouse, a creditor, or one actingfor a minor or dependent child of the decedent and (ii) later than two yearsfollowing the death of the decedent. Sums recovered by the personalrepresentative shall be administered as part of the decedent's estate.

C. This section shall not affect the right of a financial institution to makepayment on multiple-party accounts according to the terms thereof, or make itliable to the estate of a deceased party unless, before payment, theinstitution has been served with process in a proceeding by the personalrepresentative.

(1979, c. 407, § 6.1-125.8; 2010, c. 794.)