Sec. 45a-359. (Formerly Sec. 45-230h). Unmatured, contingent or unliquidated claims.
Sec. 45a-359. (Formerly Sec. 45-230h). Unmatured, contingent or unliquidated claims. (a) If, at the death of any person, there shall be an unmatured, contingent
or unliquidated claim or an outstanding bond, note, recognizance or undertaking upon
which he was principal, surety, or indemnitor and on which at the time of his death the
liability was unmatured, contingent or unliquidated, then the Court of Probate shall, on
the petition of either (1) a claimant who has duly presented his claim or (2) the fiduciary
to whom an unmatured, contingent or unliquidated claim has been duly presented, after
notice to such persons as the court shall direct, conduct a hearing to determine whether
a reserve from the assets of the estate should be established to secure the payment of
the unmatured, contingent or unliquidated claim. Following such hearing the Court of
Probate shall issue an order that (A) no reserve be established or (B) the fiduciary establish a reserve from the assets of the estate in such amount as the court may deem reasonable to secure the payment of the unmatured, contingent or unliquidated claim when
the amount thereof shall become due and payable; provided in no event shall the amount
of such reserve exceed the difference between the amount of any such unmatured, contingent or unliquidated claim and the value of any security or collateral to which the creditor
may resort for payment of such claim. In fixing the amount to be reserved for the payment
of any such claim the Court of Probate shall determine the value of any security or
collateral to which the creditor may resort for payment of such claim. The order of the
Court of Probate concerning the establishment of a reserve shall discharge the fiduciary
from all personal liability with respect to such unmatured, contingent or unliquidated
claim, with the exception of the fiduciary's obligation to maintain any reserve so established.
(b) Any such reserve shall be retained by the fiduciary for such period or periods
as the Court of Probate shall direct for the purpose of being applied to the payment of
such claim when matured, fixed and liquidated; except that the Court of Probate shall
retain jurisdiction over the reserve and may from time to time issue orders regarding
the continuation and management of the reserve, including the power to direct the disposition of income and principal. The fiduciary, in managing the reserve, shall be entitled
to reasonable compensation and reimbursement for all expenses, including reasonable
attorney's fees, which shall be paid out of the reserve. Such portion of the reserve as is
not needed to pay the claim when matured, fixed and liquidated shall be distributed
according to law by the fiduciary as directed by the Court of Probate.
(P.A. 87-384, S. 7.)
History: Sec. 45-230h transferred to Sec. 45a-359 in 1991.