64.1-184 - When sale within year valid against creditors; proceeds paid to special commissioner; bond to obtain proceeds. - Virginia Statutes

§ 64.1-184. When sale within year valid against creditors; proceeds paid tospecial commissioner; bond to obtain proceeds.

Any alienation of such estate made within one year after the death of thetestator or intestate shall be valid against creditors of such testator orintestate, if such estate is sold and conveyed under and pursuant to decreesof a court of competent jurisdiction in a proper suit for partition, sale oflands of persons under disability, or other judicial sale, and the netproceeds of sale are paid to a special commissioner appointed by the courtfor the purpose.

The net proceeds of sale shall be the purchase price for such estateincluding money, deferred purchase money obligations, and other securities,remaining after the payment of the expenses of sale ordinarily paid by thevendor in sales of such estates and the discharge of such indebtedness andencumbrances for which, by law, such estate is primarily liable.

The net proceeds so paid shall be held by the special commissioner appointedby the court for the purpose, in lieu and in place of such estate subject tothe claims of creditors of the testator or intestate in the same manner andto like extent in every respect as such estate would have been if not sold,for a period ending no sooner than one year after the death of the testatoror intestate. Upon expiration of the one-year period, or at any time withinthe one-year period upon the posting of a bond with such surety as may beprescribed by the court to secure any claims against the property orproceeds, if no claim has been made or asserted against the net proceeds,they shall be distributed by the special commissioner to those entitledthereto in proportion to the interest of each in such estate. A purchaser ofany land so sold in conformity with the provisions of this section shall notbe required to see to the application of the purchase money.

The special commissioner who receives and holds such net proceeds orrefunding bond shall give such bond as may be required by the courtappointing him.

(Code 1950, § 64-173.1; 1968, c. 656; 1996, c. 65.)