(a) If the applicable assets of the estate are insufficient to pay all claims in full, the personal representative shall make payment in the following order:
- (1) costs and expenses of administration;
- (2) reasonable funeral expenses;
- (3) debts and taxes with preference under federal law and past due child support payments, except payments required under AS 25.27.120 — 25.27.130;
- (4) reasonable and necessary medical and hospital expenses of the last illness of the decedent, including compensation of persons attending the decedent;
- (5) debts and taxes with preference under other laws of this state;
- (6) all other claims.
- (b) Preference may not be given in the payment of any claim over any other claim of the same class, and a claim due and payable is not entitled to a preference over claims not due.