Louisiana Civil Code

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CHAPTER 13 - PAYMENT OF THE DEBTS OF AN ESTATE

 

SECTION 1 - GENERAL DISPOSITIONS INTRODUCTION

Art. 1415. Estate debts are debts of the decedent and administration expenses. Debts of the decedent are obligations of the decedent or those that arise as a result of his death, such as the cost of his funeral and burial. Administration expenses are obligations incurred in the collection, preservation, management, and distribution of the estate of the decedent. [Acts 1997, No. 1421, §1, eff. July 1, 1999]

 

SECTION 2 - RIGHTS OF CREDITORS

Art. 1416. A. Universal successors are liable to creditors for the payment of the estate debts in proportion to the part which each has in the succession, but each is liable only to the extent of the value of the property received by him, valued as of the time of receipt.

B. A creditor has no action for payment of an estate debt against a universal successor who has not received property of the estate. [Acts 1997, No. 1421, §1, eff. July 1, 1999; Acts 2001, No. 824, §1]

Art. 1417. [Reserved]

Art. 1418. Successors who are creditors of the estate are paid in the same order of preference as other creditors. [Acts 1997, No. 1421, §1, eff. July 1, 1999]

Art. 1419. When there is an administration and a creditor asserts and establishes his claim after payment has been made to other creditors or distribution of the estate in whole or in part has been made to successors pursuant to a court order, the claim of the creditor must be satisfied in the following order: first, from the assets remaining under administration in the estate; next, from the successors to whom distribution has been made; and then from unsecured creditors who received payments, in proportion to the amounts received by them, but in this event the creditor may not recover more than his share. [Acts 1997, No. 1421, §1, eff. July 1, 1999]

 

SECTION 3 - RESPONSIBILITY OF SUCCESSORS AMONG THEMSELVES

Art. 1420. The provisions of this Section pertaining to responsibility of the successors among themselves for estate debts do not prevent that responsibility from being otherwise regulated by the testament or by agreement of the successors. Nevertheless, the rights of creditors of the estate cannot be impaired by the testament or by agreement among the successors. [Acts 1997, No. 1421, §1, eff. July 1, 1999]

Art. 1421. Unless otherwise provided by the testament, by agreement of the successors, or by law, estate debts are charged against the property of the estate and its fruits and products in accordance with the following articles. [Acts 1997, No. 1421, §1, eff. July 1, 1999]

Art. 1422. Estate debts that are attributable to identifiable property or to the production of its fruits or products are charged to that property and its fruits and products. Also, when the decedent has encumbered property to secure a debt, the debt is presumptively charged to that property and its fruits and products. The presumption may be rebutted, by a preponderance of the evidence that the secured debt is not attributable to the encumbered property. [Acts 1997, No. 1421, §1, eff. July 1, 1999]

Art. 1423. Debts of the decedent are charged ratably to property that is the object of general or universal legacies and to property that devolves by intestacy, valued as of the date of death. When such property does not suffice, the debts remaining are charged in the following order:

(1) Ratably to the fruits and products of property that is the object of general or universal legacies and of property that devolves by intestacy; and

(2) Ratably to the fruits and products of property that is the object of particular legacies, and then ratably to such property. [Acts 1997, No. 1421, §1, eff. July 1, 1999]

Art. 1424. Administration expenses are charged ratably to the fruits and products of property that is the object of the general or universal legacies and property that devolves by intestacy. When the fruits and products do not suffice to discharge the administration expenses, the remaining expenses are charged first to the property itself, next to the fruits and products of property that is the object of particular legacies, and then to the property itself. [Acts 1997, No. 1421, §1, eff. July 1, 1999]

Art. 1425. A successor who has not received property of the estate or its fruits and products, is not liable for contribution or reimbursement. A successor who has received property of the estate, or any of its fruits or products is not liable for contribution or reimbursement for an amount greater than the value of the property or fruits or products, received by him, valued as of the time of receipt. [Acts 1997, No. 1421, §1, eff. July 1, 1999]

Art. 1426. In the absence of an express testamentary provision or applicable provision of law, receipts and expenditures are allocated in accordance with what is reasonable and equitable in view of the interests of the successors who are entitled to the fruits and products as well as the interests of the successors who are entitled to ownership of the property, and in view of the manner in which persons of ordinary prudence, discretion, and intelligence would act in the management of their own affairs.

The compensation of the succession representative and professional fees incurred after death, such as legal, accounting and appraisal fees, shall be allocated between debts of the decedent and administration expenses in accordance with the provisions of this Article. [Acts 1997, No. 1421, §1, eff. July 1, 1999]

Art. 1427. Notwithstanding the provisions of this Chapter, for tax purposes the succession representative, or the successors if there is no representative, may report receipts and deduct expenditures as authorized by the tax law. [Acts 1997, No. 1421, §1, eff. July 1, 1999]

Art. 1428. This Chapter does not supersede the provisions of this Code governing the rights and obligations of a usufructuary with respect to payment of estate debts. [Acts 1997, No. 1421, §1, eff. July 1, 1999]

Art. 1429. This Chapter does not supersede the provisions of the Trust Code governing the rights and obligations of an income interest in trust with respect to payment of estate debts. [Acts 1997, No. 1421, §1, eff. July 1, 1999]

Arts. 1430-1466. [Reserved]