CHAPTER 14. CLAIMS AGAINST THE ESTATE
IC 29-1-14
Chapter 14. Claims Against the Estate
IC 29-1-14-1
Limitations; filing; claims barred or not; liens; tort claims
Sec. 1. (a) Except as provided in IC 29-1-7-7, all claims against a
decedent's estate, other than expenses of administration and claims
of the United States, the state, or a subdivision of the state, whether
due or to become due, absolute or contingent, liquidated or
unliquidated, founded on contract or otherwise, shall be forever
barred against the estate, the personal representative, the heirs,
devisees, and legatees of the decedent, unless filed with the court in
which such estate is being administered within:
(1) three (3) months after the date of the first published notice
to creditors; or
(2) three (3) months after the court has revoked probate of a
will, in accordance with IC 29-1-7-21, if the claimant was
named as a beneficiary in that revoked will;
whichever is later.
(b) No claim shall be allowed which was barred by any statute of
limitations at the time of decedent's death.
(c) No claim shall be barred by the statute of limitations which
was not barred at the time of the decedent's death, if the claim shall
be filed within:
(1) three (3) months after the date of the first published notice
to creditors; or
(2) three (3) months after the court has revoked probate of a
will, in accordance with IC 29-1-7-21, if the claimant was
named as a beneficiary in that revoked will;
whichever is later.
(d) All claims barrable under subsection (a) shall be barred if not
filed within nine (9) months after the death of the decedent.
(e) Nothing in this section shall affect or prevent any action or
proceeding to enforce any mortgage, pledge, or other lien upon
property of the estate.
(f) Nothing in this section shall affect or prevent the enforcement
of a claim for injury to person or damage to property arising out of
negligence against the estate of a deceased tort feasor within the
period of the statute of limitations provided for the tort action. A tort
claim against the estate of the tort feasor may be opened or reopened
and suit filed against the special representative of the estate within
the period of the statute of limitations of the tort. Any recovery
against the tort feasor's estate shall not affect any interest in the
assets of the estate unless the suit was filed within the time allowed
for filing claims against the estate. The rules of pleading and
procedure in such cases shall be the same as apply in ordinary civil
actions.
(Formerly: Acts 1953, c.112, s.1401; Acts 1961, c.287, s.1; Acts
1975, P.L.288, SEC.20.) As amended by Acts 1980, P.L.179, SEC.1;
P.L.154-1990, SEC.9; P.L.252-2001, SEC.16.
IC 29-1-14-2
Actions; definite statement; personal representative actions;
deductions from claims
Sec. 2. No action shall be brought by complaint and summons
against the personal representative of an estate for the recovery of
any claim against the decedent or the decedent's estate, except in the
enforcement of claims for injury to person or damage to property
arising out of negligence as provided in section 1 of this chapter, but
the holder thereof, whether such claim be due or not, shall file a
succinct definite statement thereof in the office of the clerk of the
court in which the letters were issued. The clerk shall send by United
States mail or by personal service an exact copy of such statement to
the personal representative of the estate. Any claims of the personal
representative against the decedent shall be made out and filed in the
office of the clerk of the court in which the letters were issued. If any
claim against the decedent is founded upon any written instrument,
alleged to have been executed by the decedent, the original or a
complete copy thereof, shall be filed with the statement, unless it is
lost or destroyed, in which case its loss or destruction must be stated
in the claim. The statement shall set forth all credits and deductions
to which the estate is entitled and shall be accompanied by the
affidavit of the claimant or the claimant's agent or attorney, that the
claim, after deducting all credits, set-offs, and deductions to which
the estate is entitled, is justly due and wholly unpaid, or if not yet
due, when it will or may become due, and no claim shall be received
unless accompanied by such affidavit. If the claim is secured by a
lien on any real or personal property, such lien shall be particularly
set forth in such statement, and a reference given to where the lien,
if of record, will be found. If the claim is contingent, the nature of
the contingency shall also be stated. No statement of claim need be
filed as provided in this section as to those claims which are paid by
the personal representative within three (3) months after the date of
the first published notice to creditors or the period allowed under
IC 29-1-7-7. However, in instances where a cause of action was
properly filed and commenced against a decedent prior to the
decedent's death, the same shall be continued against the personal
representative or successors in interest of the deceased, who shall be
substituted as the party or parties defendant in such action, and in
such instance it shall not be necessary for the claimant to file a claim
as herein provided. In any action thus continued the recovery, if any,
shall be limited as otherwise provided by law.
(Formerly: Acts 1953, c.112, s.1402; Acts 1959, c.179, s.1; Acts
1961, c.287, s.2; Acts 1965, c.144, s.1; Acts 1975, P.L.288, SEC.21.)
As amended by P.L.118-1997, SEC.20; P.L.252-2001, SEC.17.
IC 29-1-14-3
Future claims; payment; bonds
Sec. 3. Upon proof of a claim which will become due at some
future time, the court shall allow it at the present value thereof, and
payment may be made as in the case of an absolute claim which has
been allowed: Provided, if the obligation upon which such claim was
founded was entered into before January 1, 1954, payment may be
made as above, if the creditors agree thereto. If payment is not made
as above provided, the court may order the personal representative
to retain in his hands sufficient funds to satisfy the claim upon
maturity; or if the distributees shall give a bond to be approved by
the court for the payment of the creditor's claim in accordance with
the terms thereof, the court may order such bond to be given in
satisfaction of such claim and the estate may be closed.
(Formerly: Acts 1953, c.112, s.1403.) As amended by Acts 1982,
P.L.171, SEC.36.
IC 29-1-14-4
Actions; joint contracts and judgment
Sec. 4. No action shall be brought by complaint and summons
against any personal representative and any other person or persons,
or his or their legal representatives, upon any contract executed
jointly, or jointly and severally, by the deceased and such other
person or persons, or upon any joint judgment founded thereon; but
the holder of said contract or judgment shall enforce the collection
thereof against the estate of the decedent only by filing his claim as
provided in section 2 of this chapter.
(Formerly: Acts 1953, c.112, s.1404.) As amended by Acts 1982,
P.L.171, SEC.37.
IC 29-1-14-5
Joint contracts and judgments deemed joint and several
Sec. 5. Every contract executed jointly by the decedent with any
other person or persons, and every joint judgment founded on such
contract, shall be deemed to be joint and several for the purpose
contemplated in section 4 of this chapter; and the amount due
thereon shall be allowed against the estate of the decedent as if the
contract were joint and several.
(Formerly: Acts 1953, c.112, s.1405.) As amended by Acts 1982,
P.L.171, SEC.38.
IC 29-1-14-6
Secured claims, allowance, and payment
Sec. 6. The allowance and payment of secured claims shall be
made in accordance with the "Uniform Act Governing Secured
Creditors Dividends in Liquidation Proceedings," IC 30-2-7.
(Formerly: Acts 1953, c.112, s.1406.) As amended by Acts 1982,
P.L.171, SEC.39.
IC 29-1-14-7
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.)
IC 29-1-14-8
Contingent claims; liability of distributees; contribution
Sec. 8. If a contingent claim shall have been filed and allowed
against an estate, and all the assets of the estate including the fund,
if any, set apart for the payment thereof, shall have been distributed,
and the claim shall thereafter become absolute, the creditor shall
have the right to recover thereon in the court having probate
jurisdiction against those distributees whose distributive shares have
been increased by reason of the fact that the amount of said claim as
finally determined was not paid out prior to final distribution,
provided an action therefor shall be commenced within three (3)
months after the claim becomes absolute. Such distributees shall be
jointly and severally liable, but no distributee shall be liable for an
amount exceeding the amount of the estate or fund so distributed to
him. If more than one (1) distributee is liable to the creditor, the
distributee shall make all distributees who can be reached by process
parties to the action. By its judgment the court shall determine the
amount of the liability of each of the defendants as between
themselves, but if any be insolvent or unable to pay his proportion,
or beyond the reach of process, the others, to the extent of their
respective liabilities, shall nevertheless be liable to the creditor for
the whole amount of the debt. If any person liable for the debt fails
to pay the person's just proportion to the creditor, the person shall be
liable to indemnify all who, by reason of such failure on the person's
part, have paid more than their just proportion of the debt, the
indemnity to be recovered in the same action or in separate actions.
(Formerly: Acts 1953, c.112, s.1408; Acts 1975, P.L.288, SEC.22.)
As amended by P.L.252-2001, SEC.18; P.L.1-2002, SEC.124.
IC 29-1-14-9
Classification of claims; preferences
Sec. 9. (a) All claims shall be classified in one (1) of the
following classes. 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. However, in any estate in
which the decedent was a recipient of public assistance under
IC 12-1-1 through IC 12-1-12 (before its repeal) or any of the
following, the amount of funeral expenses having priority over
any claim for the recovery of public assistance shall not exceed
the limitations provided for under IC 12-14-6, IC 12-14-17, and
IC 12-14-21:
TANF assistance.
TANF burials.
TANF IMPACT/J.O.B.S.
Temporary Assistance to Other Needy Families (TAONF)
assistance.
ARCH.
Blind relief.
Child care.
Child welfare adoption assistance.
Child welfare adoption opportunities.
Child welfare assistance.
Child welfare child care improvement.
Child welfare child abuse.
Child welfare child abuse and neglect prevention.
Child welfare children's victim advocacy program.
Child welfare foster care assistance.
Child welfare independent living.
Child welfare medical assistance to wards.
Child welfare program review action group (PRAG).
Child welfare special needs adoption.
Food Stamp administration.
Health care for indigent (HCI).
ICES.
IMPACT (food stamps).
Title IV-D (ICETS).
Title IV-D child support administration.
Title IV-D child support enforcement (parent locator).
Medicaid assistance.
Medical services for inmates and patients (590).
Room and board assistance (RBA).
Refugee social service.
Refugee resettlement.
Repatriated citizens.
SSI burials and disabled examinations.
Title XIX certification.
(3) Allowances made under IC 29-1-4-1.
(4) All debts and taxes having preference under the laws of the
United States.
(5) Reasonable and necessary medical expenses of the last
sickness of the decedent, including compensation of persons
attending him.
(6) All debts and taxes having preference under the laws of this
state; but no personal representative shall be required to pay any
taxes on any property of the decedent unless such taxes are due
and payable before possession thereof is delivered by the
personal representative pursuant to the provisions of IC 29-1.
(7) All other claims allowed.
(b) No preference shall be given in the payment of any claim over
any other claim of the same class, nor shall a claim due and payable
be entitled to a preference over claims not due.
(Formerly: Acts 1953, c.112, s.1409; Acts 1955, c.258, s.5; Acts
1965, c.371, s.1; Acts 1975, P.L.288, SEC.23.) As amended by Acts
1976, P.L.125, SEC.6; Acts 1979, P.L.268, SEC.5; P.L.2-1992,
SEC.788; P.L.161-2007, SEC.39.
IC 29-1-14-10
Allowance; disallowance; expenses of administration
Sec. 10. (a) On or before three (3) months and fifteen (15) days
after the date of the first published notice to creditors, the personal
representative shall allow or disallow each claim filed within three
(3) months after the date of the first published notice to creditors by
making appropriate notations on the margin of the claim and
allowance docket showing the action taken as to the claim. If a
personal representative determines that the personal representative
should not allow a claim in full, the claim shall be noted
"disallowed". The clerk of the court shall give written notice to a
creditor if a claim has been disallowed in full or in part. All claims
that are disallowed, or are neither allowed nor disallowed within
three (3) months and fifteen (15) days, shall be set for trial in the
probate court upon the petition of either party to the claim. The
personal representative shall make an appropriate notation of any
compromise or adjustment on the margin of the claim and allowance
docket. If the personal representative, after allowing a claim and
before paying it, determines that the claim should not have been
allowed, the personal representative shall change the notation on the
claim and allowance docket from "allowed" to "disallowed" and give
written notice to the creditor. If a claim has been paid in full or in
part, the creditor shall:
(1) release the claim to the extent that the claim has been paid;
and
(2) give written notice to the clerk of the court of the release.
(b) Claims for expenses of administration may be allowed upon
application of the claimant or of the personal representative, or may
be allowed at any accounting, regardless of whether or not they have
been paid by the personal representative.
(Formerly: Acts 1953, c.112, s.1410; Acts 1975, P.L.288, SEC.24.)
As amended by P.L.154-1990, SEC.10; P.L.252-2001, SEC.19.
IC 29-1-14-11
Inquiry into correctness; liability on bond
Sec. 11. Before allowing or paying claims against the estate he
represents, it shall be the duty of every personal representative to
inquire into the correctness of all claims against the estate and make
all available defenses thereto, and if he fails so to do, he shall be
liable on his bond, at the suit of any person interested in the estate,
for all damages sustained by the estate in consequence of such
neglect.
(Formerly: Acts 1953, c.112, s.1411.)
IC 29-1-14-12
Trial; pleading; dismissal
Sec. 12. (a) When any claim is transferred for trial, it shall not be
necessary for the personal representative to plead any matter by way
of answer, except a set-off or counter-claim, to which the plaintiff
shall reply. If the personal representative pleads any other matter by
way of defense, the claimant shall reply thereto; the sufficiency of
the statement of the claim, or any subsequent pleading, may be tested
by appropriate pleadings, and if objection be made that the assignor
of a claim not assigned by endorsement is not a party to the action,
leave shall be given the claimant to amend by making him a party to
answer to his interest in the claim and to sue out process against the
assignor to answer in that behalf. And if it shall be shown to the
court that any person is bound with the decedent in any contract
which is the foundation of the claim, the court shall direct that the
claim be amended by making such person a defendant in the action,
and process shall be issued against and served upon him, and
thereafter the action shall be prosecuted against him as a codefendant
with such personal representative and judgment shall be rendered
accordingly.
(b) If any claimant fails to attend and prosecute his claim at the
time the same shall be set down for trial, the court shall dismiss the
claim; and any subsequent prosecution of the claim against the estate
shall be at the costs of the claimant, unless good cause for such
failure to prosecute be shown.
(Formerly: Acts 1953, c.112, s.1412.) As amended by Acts 1978,
P.L.132, SEC.7.
IC 29-1-14-13
Trial of claims; judgment; set-off or counterclaim
Sec. 13. The trial of a claim under this chapter shall be conducted
as in ordinary civil cases, and if the finding is for the claimant the
court shall allow the claim in full or in part, and costs, to be paid out
of the assets of the estate under section 19 of this chapter. If the
claim sued on is secured by a lien upon property of the deceased, the
date and extent shall be ascertained and fixed by the finding and
judgment. If the finding is in favor of the personal representative
upon a set-off or counter-claim, judgment shall be rendered thereon
as in ordinary cases. If a set-off or counter-claim is pleaded, and the
claim is afterward dismissed, the personal representative may
nevertheless proceed to trial and judgment on the set-off or
counter-claim.
(Formerly: Acts 1953, c.112, s.1413.) As amended by P.L.118-1997,
SEC.21.
IC 29-1-14-14
Petitions; defend claims; objections to payment
Sec. 14. (a) In all cases when a claim is filed against the estate,
and before it is paid, any person interested in the estate, upon written
petition to the court, shall be allowed, at his expense, to defend such
claim, and until such claim is adjudicated the personal representative
shall not pay the same.
(b) In all cases when a claim against the estate is paid by the
personal representative, without payment thereof having been
ordered by the court, whether or not such claim has been filed, any
person interested in the estate may raise whatever objections he may
have to the payment of such claim by filing his objections to the next
account of the personal representative, as provided in IC 29-1-16-7.
(Formerly: Acts 1953, c.112, s.1414.) As amended by Acts 1982,
P.L.171, SEC.40.
IC 29-1-14-15
Execution; final process; payment; mortgages, pledges, or liens;
enforcement
Sec. 15. No execution or other final process shall be issued on any
allowance or judgment rendered upon a claim against a decedent's
estate for the collection thereof out of the assets of the estate, but all
such claims shall be paid by the personal representative in full or pro
rata, in due course of administration; provided, however, the
provisions of this section shall not be construed to prevent the
enforcement of mortgages, pledges or other liens upon real or
personal property in an appropriate proceeding.
(Formerly: Acts 1953, c.112, s.1415.)
IC 29-1-14-16
Liens and mortgages, enforcement; sale of real estate; exception
Sec. 16. Unless an earlier date is authorized by the judge of the
court having jurisdiction of the decedent's estate no proceedings shall
be instituted before the end of three (3) months from the death of the
decedent to enforce the lien of any judgment rendered against the
decedent in his lifetime upon real estate or to enforce any decree
specifically directing the sale of such real estate to discharge any lien
or liability created or suffered by the decedent, nor shall any suit be
brought before that time against the heirs or devisees of the deceased
to foreclose any mortgage or other lien thereon; and in case of suit to
foreclose any mortgage or other lien thereon, the personal
representative shall be made a party defendant thereto; and if the
personal representative shall be diligently prosecuting his
proceedings to sell the real estate of the deceased for the purpose of
making assets to discharge such liens, further proceedings for the
sale thereof by the holders of liens thereon shall be stayed, upon the
application of the personal representative. This section does not
apply to cases where, before the end of the three (3) months, the real
estate shall have been sold by the personal representative subject to
liens thereon, nor to mortgages and judgments in favor of the state.
(Formerly: Acts 1953, c.112, s.1416; Acts 1975, P.L.288, SEC.25.)
As amended by P.L.252-2001, SEC.20.
IC 29-1-14-17
Personal representative claims
Sec. 17. (a) Whenever a claim in favor of a personal
representative against the estate the personal representative
represents that accrued before the death of the decedent is filed
against an estate, with the affidavit of the claimant attached, the
claim shall not be acted upon by the personal representative unless
all interested persons who would be affected by the allowance of the
claim consent in writing to it. If all interested persons do not consent
to the payment of that claim, the judge shall appoint a special
personal representative who shall examine the nature of the claim. If
the special personal representative determines that the claim is just,
the special personal representative shall allow the claim. If the
special personal representative believes it is in the best interests of
the estate to oppose the claim, the special personal representative
may:
(1) employ counsel to represent the special personal
representative;
(2) disallow the claim; and
(3) ask the court to set the claim for trial.
The special personal representative and the special personal
representative's counsel shall be paid out of the estate fees for
services that the court determines reasonable and appropriate.
(b) Claims of personal representatives shall not be deemed civil
actions or proceedings for the purpose of determining court costs,
unless the court arranges for active opposition provided in this
section.
(Formerly: Acts 1953, c.112, s.1417.) As amended by Acts 1978,
P.L.132, SEC.8; P.L.118-1997, SEC.22.
IC 29-1-14-18
Compromise of claims
Sec. 18. The personal representative may, if it appears for the best
interests of the estate, compromise any claim against the estate,
whether due or not due, absolute or contingent, liquidated or
unliquidated, but if such claim is not filed such compromise must be
consummated within three (3) months after the date of the first
published notice to creditors. In the absence of prior authorization or
subsequent approval by the court, no compromise shall bind the
estate.
(Formerly: Acts 1953, c.112, s.1418; Acts 1975, P.L.288, SEC.26.)
As amended by P.L.252-2001, SEC.21.
IC 29-1-14-19
Payment of claims; bond or security of creditor; report of
insolvency
Sec. 19. (a) The personal representative at any time shall pay the
claims as the court shall order if the claims are filed within three (3)
months after the date of the first published notice to creditors or the
period allowed under IC 29-1-7-7, if applicable, and the court may
require bond or security to be given by the creditor to refund such
part of such payment as may be necessary to make payment in
accordance with this title.
(b) Prior to the expiration of three (3) months after the date of the
first published notice to creditors or the period allowed under
IC 29-1-7-7, the personal representative, if the estate clearly is
solvent, may pay any claims that the personal representative believes
are just and correct, whether or not the claims have been filed. The
personal representative may require bond or security to be given by
the creditor to refund any part of the payment as the court may
subsequently order. The personal representative, following all such
payments, shall include them in the personal representative's next
account and they shall be considered proper payments under this title
if they are approved by the court as a part of the account.
(c) Upon the expiration of three (3) months after the date of the
first published notice to creditors or the period allowed under
IC 29-1-7-7 and the final adjudication of all claims filed against the
estate, the personal representative shall proceed to pay the claims
that have been allowed against the estate in accordance with this title
that the personal representative has not paid.
(d) If it appears at any time that the estate is or may be insolvent,
that there are insufficient funds on hand, or that there is other good
or sufficient cause, the personal representative may report that fact
to the court and apply for any necessary order.
(Formerly: Acts 1953, c.112, s.1419; Acts 1975, P.L.288, SEC.27.)
As amended by P.L.154-1990, SEC.11; P.L.118-1997, SEC.23;
P.L.252-2001, SEC.22.
IC 29-1-14-20
Mortgage; pledge; lien; payment; renewal; extension
Sec. 20. When any assets of the estate are encumbered by
mortgage, pledge or other lien, the personal representative may pay
such encumbrance or any part thereof, renew or extend any
obligation secured by the encumbrance or may convey or transfer
such assets to the creditor in satisfaction of his lien, in whole or in
part, whether or not the holder of the encumbrance has filed a claim,
if it appears to be for the best interest of the estate. As to any such
conveyance or transfer the personal representative must obtain prior
authorization of the court and as to any such payment, renewal or
extension the personal representative must obtain prior authorization
or subsequent approval of the court. The making of such payment
shall not increase the share of the distributee entitled to such
encumbered assets unless otherwise provided by will.
(Formerly: Acts 1953, c.112, s.1420.)
IC 29-1-14-21
Adverse claims; notice; trial
Sec. 21. When any person claims any interest in any property in
the possession of the personal representative adverse to the estate,
the person may file, prior to the expiration of three (3) months after
the date of the first published notice to creditors, a petition with the
court having jurisdiction of the estate setting out the facts concerning
such interest, and thereupon the court shall cause such notice to be
given to such parties as it deems proper, and the case shall be set for
trial and tried as in ordinary civil actions.
(Formerly: Acts 1953, c.112, s.1421; Acts 1975, P.L.288, SEC.28.)
As amended by P.L.252-2001, SEC.23.