(a) The charges and claims against the estate which have been presented and allowed, or presented and disallowed but subsequently established by judgment, within the first three months after the date of the notice of appointment of the executor or administrator, shall be paid in the order set forth below. Those presented and allowed or established in like manner with each succeeding period of three months thereafter during the continuance of the administration shall be paid in the same manner.
(1) Funeral charges.
(2) Taxes of whatever nature.
(3) Expenses of last sickness.
(4) Debts preferred by the law.
(5) Debts which at the death of the deceased were a lien upon his property or any right or interest therein according to the priority of their several liens.
(6) Debts due employees of decedent for wages earned within the ninety days immediately preceding the death of the decedent.
(7) All other claims against the estate.
(b) The preference given by item (5) in subsection (a) of this section shall extend only to the proceeds of the property upon which the lien exists and as to such proceeds such debts are to be preferred to any of the classes mentioned in such subsection other than the taxes upon such property.
(c) The executor or administrator may retain in his hands in preference to any claim or charge against the estate, the amount of his own compensation and the necessary expenses of administration.