75-7-512 - Allowance of claims.
75-7-512. Allowance of claims.
(1) As to claims presented in the manner described in Section 75-7-510 and within thetime limit prescribed in Section 75-7-509, the trustee may mail a notice to any claimant statingthat the claim has been allowed or disallowed. If, after allowing or disallowing a claim, thetrustee changes the decision concerning the claim, the trustee shall notify the claimant. Thetrustee may not change a disallowance of a claim after the time for the claimant to file a petitionfor allowance or to commence a proceeding on the claim has expired and the claim has beenbarred. If the notice of disallowance warns the claimant of the impending bar, a claim which isdisallowed in whole or in part by the trustee is barred so far as not allowed, unless the claimantseeks a court-ordered allowance by filing a petition for allowance in the court or by commencinga proceeding against the trustee not later than 60 days after the mailing of the notice ofdisallowance or partial allowance. If the trustee fails to mail notice to a claimant of action on theclaim within 60 days after the time for original presentation of the claim has expired, this failurehas the effect of a notice of allowance.
(2) Upon the petition of the trustee or a claimant in a proceeding for this purpose, thecourt may order any claim presented to the trustee or trustee's attorney in a timely manner and notbarred by Subsection (1) to be allowed in whole or in part. Notice of this proceeding shall begiven to the claimant, the trustee, and those other persons interested in the trust estate as the courtmay direct by order at the time the proceeding is commenced.
(3) A judgment in a proceeding in another court against the trustee to enforce a claimagainst a deceased settlor's estate is a court-ordered allowance of the claim.
(4) Unless otherwise provided in any judgment in another court entered against a trustee,allowed claims bear interest at the legal rate for the period commencing six months after thedeceased settlor's date of death unless based on a contract making a provision for interest, inwhich case they bear interest in accordance with that provision.
Renumbered and Amended by Chapter 89, 2004 General Session