Farmville Oil & Fertilizer Co. v. Bourne

*339 Adams, J. Tbe order in which the debts of a decedent must be paid is prescribed by section 93 of the Consolidated Statutes. Recognizing priority of classes, this statute provides for the administration of assets for the benefit of all the creditors according to definite and established rules. Trust Co. v. Lentz, 196 N. C., 398; Bowen v. Daugherty, 168 N. C., 242; Atkinson v. Ricks, 140 N. C., 418. It is founded on the theory that the question of priority among claims shall be determined upon the facts as they exist at the death of the debtor. Tarboro v. Pender, 153 N. C., 421. The first class in section 93 is composed of debts which by law have a specific lien on property to an amount not exceeding the value of such property, and the third class, of taxes assessed on the estate of the deceased before his death. It is admitted that the taxes for the year 1930 had been assessed against the land described in the deed of trust previously to the death of W. L. Reason and had not been paid; they were, therefore, in the third class. So the immediate question is whether the deed of trust executed for the benefit of the plaintiff secured a debt which by law had a specific lien on property, as provided in the first class. We are of opinion that the question should be answered in the affirmative. Where after the lessee of turpentine boxes had died his personal representative sold the turpentine in the boxes and on the trees, it was held that the proceeds of the sale should be applied in payment of .the lessor’s lien. C. S., 2363; Pate v. Oliver, 104 N. C., 458. The statute created the lien; but antecedent to the lien was the contract of the parties. In like manner the deed of trust expressed the terms of the contract and upon its execution and registration conveyed the legal title to the trustee for the benefit of the plaintiff, who upon default had the legal right to subject the land to the payment of its claim. The secured notes executed by the deceased represented a debt to which pursuant to the deed of trust, the law attached a specific lien on the property. In the order of payment this debt, being in the first class, has priority over the payment of taxes provided for eo- nomine in the third subdivision of the statute. The appellant cites C. S., 7980, which provides that whenever any real estate shall be sold by any person under a power of sale conferred upon him by a . . . deed of trust, the person making such sale must pay out of the proceeds of sale all taxes then assessed upon such real estate and such sums as shall be necessary to redeem the land, if it has been sold for taxes and such redemption is practicable; but we are convinced that the General Assembly did not intend to abolish the method definitely prescribed for administering the estate of a person deceased or to modify the statutory direction as to the order in which the decedent’s debts should be paid. Neither Smith v. Miller, 158 N. C., 98, nor Callahan v. Flack, ante, 106, is in conflict with this position. *340 The parties have requested that we determine the question of priority between the claims above stated, but as to any other contentions we make no adjudication beyond the holding that the complaint states a cause of action and that the trial court made no error in overruling the demurrer. Judgment Affirmed.