SEC. 266. If the account mentioned in the preceding section be for a final settlement, and the estate be ready for distribution, the notice of the settlement must state those facts, and must be served, published, or waived in the same manner as provided in section of this code, relating to sales of property; and on confirmation of the final account, distribution and partition of the estate to all entitled thereto may be immediately had without further notice or proceedings. If, from any cause, the hearing of the account or the partition and distribution be postponed, the order postponing the same to a day certain is notice to all persons interested therein. SEC. 267. On the day appointed, or any subsequent day to which the hearing may be postponed by the court, any person interested in the estate may appear and file his exceptions in writing to the account, and contest the same. Notice for ment. final settle Distribution and partition. Interested account. party may file exceptions to All matters may be contested by SEC. 268. All matters, including allowed claims not passed upon on the settlement of any former account, or on rendering an exhibit, or on making a decree of sale, heirs. may be contested by the heirs, for cause shown. The hearing and allegations of the respective parties may be postponed from time to time, when necessary, and the court may appoint one or more referees to examine the accounts and make report thereon, subject to confirma- of hearing. tion, and may allow a reasonable compensation to the referees, to be paid out of the estate of the decedent. Postponement Effect of set SEC. 269. The settlement of the account and the allowance thereof by the court, or upon appeal, is conclusive against all persons in any way interested in the estate saving, however, to all persons laboring under any legal disability their right to move, for cause, to reopen and examine the account, or to proceed by action tlement. against the executor or administrator, either individually or upon his bond, at any time before final distribution, and in any action brought by any such person the allowance and settlement of the account is prima facie evidence of its correctness. Notice of settlement. Sale of per sonal, in lieu of real prop Investment of moneys of estate. SEC. 270. The account must not be allowed by the court until it is first proved that notice has been given as required by this chapter, and the decree must show that such proof was made to the satisfaction of the court, and is conclusive evidence of the fact. SEC. 271. Whenever it appears to the court, on any hearing of an application for the sale of real property, that it would be for the interest of the estate that personal property of the estate, or some part of such property, should be first sold, the court may decree the sale of such personal property, or any part of it, and the sale thereof shall be conducted in the same manner as if the application had been made for the sale of such personal property in the first instance. SEC. 272. Pending the settlement of any estate, on the petition of any party interested therein, the probate court may order any moneys in the hands of the executors or administrators to be invested for the benefit of the estate in securities of the United States or of this territory. Such order can only be made after publication of notice of the petition in some newspaper to be designated by the judge. ARTICLE III.-The Payment of Debts of the Estate. SEC. 273. The debts of the estate must be paid in the following order: First. Funeral expenses. Second. Expenses of last sickness. Third. The wages of each miner, mechanic, salesman, clerk, servant, or laborer, for services rendered which debts within forty days next preceding the death of the employer, not exceeding one hundred dollars. Order i n to be paid. Fourth. Debts due the county, territory, or United States. Fifth. All other demands against the estate, except that where a lien exists by mortgage, pledge, attachment, or judgment, such lien shall have preference to the ex tent of such demand on any specific property to which such lien may attach. Payment of SEC. 274. The preference given in the preceding section to a mortgage only extends to the proceeds of the property mortgaged. If the proceeds of such property mortgage. are insufficient to pay the mortgage, the part remaining unsatisfied must be classed with other demands against the estate. If estate insufficient, claims paid SEC. 275. If the estate is insufficient to pay all the debts of any one class, each creditor must be paid a dividend in proportion to his claim; and no creditor of pro rata. any one class shall receive such payment until all those of the preceding class are fully paid. SEC. 276. The executor or administrator, as soon as he has sufficient funds in his hands, must pay the funeral expenses, and the expenses of the last sickness, and the allowance made to the family of the decedent. He retain in his hands the necessary expenses of administration, but he is not obliged to pay any other debt, or any legacy, until, as prescribed in this article, the payment has been ordered by the court. may SEC. 277. Upon the settlement of the accounts of the executor or administrator, at the end of the year, as required in this chapter, the court must make an order for the payment of the debts, as the circumstances of the estate require. If there are not sufficient funds in the hands of the executor or administrator, the court must specify in the decree the sum to be paid to each creditor. If the whole property of the estate be exhausted by such payment or distribution, such account must be considered as a final account, and the executor or administrator is entitled to his discharge on producing and filing the necessary vouchers and proofs, showing that such payments have been made, and that he has fully complied with the decree of the court. SEC. 278. If there is any claim not due, or any contingent or disputed claim against the estate, the amount thereof, or such part of the same as the holder would be Payment of expenses of funeral and last sickness. Order for payand discharge ment of debts of executor or administra tor. As to claims entitled to if the claim were due, established, or absolute, must be paid into the court, and there remain, to be paid over to the party when he becomes entitled thereto; or, if he fails to establish his claim, to be paid over or distributed as the circumstances of the estate require. If not due or any creditor whose claim has been allowed, but is not contingent yet due, appears and assents to a deduction therefrom of the legal interest for the time the claim has yet to run, he is entitled to be paid accordingly. The payments provided for in this section are not to be made when the estate is insolvent, unless a pro rata distribution is disputed, or claims. ordered. SEC. 279. When a decree is made by the probate court for the payment of creditors, the executor or administrator is personally liable to each creditor for his allowed claim, or the dividend thereon, and execution may be issued on such decree, as upon a judgment in the district court, in favor of each creditor, and the same proceeding may be had under such execution as if it had been issued from the district court. The executor or administrator is liable therefor, on his bond, to each creditor. SEC. 280. When the accounts of the administrator or executor have been settled and an order made for the payment of debts and distribution of the estate, no creditor whose claim was not included in the order for payment has any right to call upon the creditors who have been paid, or upon the heirs, devisees, or legatees, to contribute to the payment of his claim; but if the executor or administrator has failed to give the notice to the creditors, as prescribed in section 141, such creditor may recover on the bond of the executor or administrator the amount of his claim, or such part thereof as he would have been entitled to had it been allowed. This section shall not apply to any creditor whose claim was not due ten months before the day of settlement, or whose claim was contingent and did not become absolute ten months before such date. Payment SEC. 281. If the whole of the debts have been paid by the first distribution, the court must direct the payment of legacies and the distribution of the estate among the heirs, legatees, or other persons entitled, as provided in the next chapter; but if there be debts remaining un- legacies. paid, or if, for other reasons, the estate be not in a proper condition to be closed, the court must give such extension of time as may be reasonable for a final settlement of the estate. SEC. 282. At the time designated in the last section, or sooner, if within that time all the property of the estate has been sold, or there are sufficient funds in his hands for the payment of all the debts due by the estate, and the estate be in a proper condition to be closed, the executor or administrator must render a final account and pray a settlement of his administration. SEC. 283. If he neglects to render his account, the same proceedings may be had as provided in this chapter in regard to the first account to be rendered by him, and all the provisions of this chapter relative to the last mentioned account, and the notice and settlement thereof, apply to his account presented for final settlement. CHAPTER XI. ARTICLE I.-Partial Distribution Prior to Final SEC. 284. At any time after the lapse of four months from the issuing of letters testamentary or of administration, any heir, devisee, or legatee, may present his petition to the court for the legacy or share of the estate to which he is entitled, to be given to him upon his giving bonds, with security, for the payment of his proportion of the debts of the estate. SEC. 285. Notice of the application must be given to the executor or administrator, personally, and to all persons interested in the estate, in the same manner that notice is required to be given of the settlement of the account of an executor or administrator. when of final account to be made. Proceedings on neglect to account. render final Payment of giving bond. legacies upon Notice of aplegacies. plication for |