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30.1-22 Compromise of Controversies

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CHAPTER 30.1-22COMPROMISE OF CONTROVERSIES30.1-22-01. (3-1101) Effect of approval of agreements involving trusts, inalienableinterests, or interest of third persons. A compromise of any controversy as to admission to<br>probate of any instrument offered for formal probate as the will of a decedent, the construction,<br>validity, or effect of any governing instrument, the rights or interests in the estate of the decedent,<br>of any successor, or the administration of the estate, if approved in a formal proceeding in the<br>court for that purpose, is binding on all the parties thereto, including those unborn, unascertained,<br>or who could not be located. An approved compromise is binding even though it may affect a<br>trust or an inalienable interest. A compromise does not impair the rights of creditors or of taxing<br>authorities who are not parties to it.30.1-22-02. (3-1102) Procedure for securing court approval of compromise. Theprocedure for securing court approval of a compromise is as follows:1.The terms of the compromise shall be set forth in an agreement in writing which<br>shall be executed by all competent persons and parents or guardians acting for any<br>minor children having beneficial interests or having claims which will or may be<br>affected by the compromise. Execution is not required by any person whose identity<br>cannot be ascertained or whose whereabouts is unknown and cannot reasonably be<br>ascertained.2.Any interested person, including the personal representative, if any, or a trustee,<br>then may submit the agreement to the court for its approval and for execution by the<br>personal representative, the trustee of every affected testamentary trust, and other<br>fiduciaries and representatives.3.After notice to all interested persons or their representatives, including the personal<br>representative of any estate and all affected trustees, the court, if it finds that the<br>contest or controversy is in good faith and that the effect of the agreement upon the<br>interests of persons represented by fiduciaries or other representatives is just and<br>reasonable, shall make an order approving the agreement and directing all<br>fiduciaries under its supervision to execute the agreement.Minor childrenrepresented only by their parents or guardians may be bound only if their parents or<br>guardians join with other competent persons in execution of the compromise. Upon<br>the making of the order and the execution of the agreement, all further disposition of<br>the estate is in accordance with the terms of the agreement.Page No. 1Document Outlinechapter 30.1-22 compromise of controversies