Contingent claims; payment; bond of distributee
Sec. 7. Contingent claims which cannot be allowed as absolute
debts shall, nevertheless, be filed in the court. If allowed as a
contingent claim, the allowance shall state the nature of the
contingency. If such claim shall become absolute before distribution
of the estate, it shall be paid in the same manner as absolute claims
of the same class. In all other cases the court may provide for the
payment of contingent claims in any one of the following methods.
(a) The creditor and personal representative may determine, by
agreement, arbitration or compromise, the value thereof, according
to its probable present worth, and upon approval thereof by the court,
it may be allowed and paid in the same manner as an absolute claim.
(b) The court may order the personal representative to make
distribution of the estate but to retain in his hands sufficient funds to
pay the claim if and when the same becomes absolute; but for this
purpose the estate shall not be kept open longer than two (2) years
after distribution of the remainder of the estate has been made; and
if such claim has not become absolute within that time, distribution
shall be made to the distributees of the funds so retained, after paying
any costs and expenses accruing during such period and such
distributees shall be liable to the creditor to the extent of the estate
received by them, if such contingent claim thereafter becomes
absolute. When distribution is so made to distributees, the court may
require such distributees to give bond for the satisfaction of their
liability to the contingent creditor.
(c) The court may order distribution of the estate as though such
contingent claim did not exist, but the distributees shall be liable to
the creditor to the extent of the estate received by them, if the
contingent claim thereafter becomes absolute; and the court may
require such distributees to give bond for the performance of their
liability to the contingent creditor.
(Formerly: Acts 1953, c.112, s.1407.)
Last modified: May 27, 2006