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 adecedent's estate, other than expenses of administration and claimsof the United States, the state, or a subdivision of the state, whetherdue or to become due, absolute or contingent, liquidated orunliquidated, founded on contract or otherwise, shall be foreverbarred against the estate, the personal representative, the heirs,devisees, and legatees of the decedent, unless filed with the court inwhich such estate is being administered within:
(1) three (3) months after the date of the first published noticeto creditors; or
(2) three (3) months after the court has revoked probate of awill, in accordance with IC 29-1-7-21, if the claimant wasnamed as a beneficiary in that revoked will;
whichever is later.
(b) No claim shall be allowed which was barred by any statute oflimitations at the time of decedent's death.
(c) No claim shall be barred by the statute of limitations whichwas not barred at the time of the decedent's death, if the claim shallbe filed within:
(1) three (3) months after the date of the first published noticeto creditors; or
(2) three (3) months after the court has revoked probate of awill, in accordance with IC 29-1-7-21, if the claimant wasnamed as a beneficiary in that revoked will;
whichever is later.
(d) All claims barrable under subsection (a) shall be barred if notfiled within nine (9) months after the death of the decedent.
(e) Nothing in this section shall affect or prevent any action orproceeding to enforce any mortgage, pledge, or other lien uponproperty of the estate.
(f) Nothing in this section shall affect or prevent the enforcementof a claim for injury to person or damage to property arising out ofnegligence against the estate of a deceased tort feasor within theperiod of the statute of limitations provided for the tort action. A tortclaim against the estate of the tort feasor may be opened or reopenedand suit filed against the special representative of the estate withinthe period of the statute of limitations of the tort. Any recoveryagainst the tort feasor's estate shall not affect any interest in theassets of the estate unless the suit was filed within the time allowedfor filing claims against the estate. The rules of pleading andprocedure in such cases shall be the same as apply in ordinary civilactions.
(Formerly: Acts 1953, c.112, s.1401; Acts 1961, c.287, s.1; Acts1975, 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 summonsagainst the personal representative of an estate for the recovery ofany claim against the decedent or the decedent's estate, except in theenforcement of claims for injury to person or damage to propertyarising out of negligence as provided in section 1 of this chapter, butthe holder thereof, whether such claim be due or not, shall file asuccinct definite statement thereof in the office of the clerk of thecourt in which the letters were issued. The clerk shall send by UnitedStates mail or by personal service an exact copy of such statement tothe personal representative of the estate. Any claims of the personalrepresentative against the decedent shall be made out and filed in theoffice of the clerk of the court in which the letters were issued. If anyclaim against the decedent is founded upon any written instrument,alleged to have been executed by the decedent, the original or acomplete copy thereof, shall be filed with the statement, unless it islost or destroyed, in which case its loss or destruction must be statedin the claim. The statement shall set forth all credits and deductionsto which the estate is entitled and shall be accompanied by theaffidavit of the claimant or the claimant's agent or attorney, that theclaim, after deducting all credits, set-offs, and deductions to whichthe estate is entitled, is justly due and wholly unpaid, or if not yetdue, when it will or may become due, and no claim shall be receivedunless accompanied by such affidavit. If the claim is secured by alien on any real or personal property, such lien shall be particularlyset 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 ofthe contingency shall also be stated. No statement of claim need befiled as provided in this section as to those claims which are paid bythe personal representative within three (3) months after the date ofthe first published notice to creditors or the period allowed underIC 29-1-7-7. However, in instances where a cause of action wasproperly filed and commenced against a decedent prior to thedecedent's death, the same shall be continued against the personalrepresentative or successors in interest of the deceased, who shall besubstituted as the party or parties defendant in such action, and insuch instance it shall not be necessary for the claimant to file a claimas 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; Acts1961, 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 somefuture time, the court shall allow it at the present value thereof, andpayment may be made as in the case of an absolute claim which has
been allowed: Provided, if the obligation upon which such claim wasfounded was entered into before January 1, 1954, payment may bemade as above, if the creditors agree thereto. If payment is not madeas above provided, the court may order the personal representativeto retain in his hands sufficient funds to satisfy the claim uponmaturity; or if the distributees shall give a bond to be approved bythe court for the payment of the creditor's claim in accordance withthe terms thereof, the court may order such bond to be given insatisfaction 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 summonsagainst any personal representative and any other person or persons,or his or their legal representatives, upon any contract executedjointly, or jointly and severally, by the deceased and such otherperson or persons, or upon any joint judgment founded thereon; butthe holder of said contract or judgment shall enforce the collectionthereof against the estate of the decedent only by filing his claim asprovided 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 anyother person or persons, and every joint judgment founded on suchcontract, shall be deemed to be joint and several for the purposecontemplated in section 4 of this chapter; and the amount duethereon shall be allowed against the estate of the decedent as if thecontract 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 bemade in accordance with the "Uniform Act Governing SecuredCreditors 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 absolutedebts shall, nevertheless, be filed in the court. If allowed as acontingent claim, the allowance shall state the nature of thecontingency. If such claim shall become absolute before distribution
of the estate, it shall be paid in the same manner as absolute claimsof the same class. In all other cases the court may provide for thepayment of contingent claims in any one of the following methods.
(a) The creditor and personal representative may determine, byagreement, arbitration or compromise, the value thereof, accordingto 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 makedistribution of the estate but to retain in his hands sufficient funds topay the claim if and when the same becomes absolute; but for thispurpose the estate shall not be kept open longer than two (2) yearsafter distribution of the remainder of the estate has been made; andif such claim has not become absolute within that time, distributionshall be made to the distributees of the funds so retained, after payingany costs and expenses accruing during such period and suchdistributees shall be liable to the creditor to the extent of the estatereceived by them, if such contingent claim thereafter becomesabsolute. When distribution is so made to distributees, the court mayrequire such distributees to give bond for the satisfaction of theirliability to the contingent creditor.
(c) The court may order distribution of the estate as though suchcontingent claim did not exist, but the distributees shall be liable tothe creditor to the extent of the estate received by them, if thecontingent claim thereafter becomes absolute; and the court mayrequire such distributees to give bond for the performance of theirliability 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 allowedagainst 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 shallhave the right to recover thereon in the court having probatejurisdiction against those distributees whose distributive shares havebeen increased by reason of the fact that the amount of said claim asfinally 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 bejointly and severally liable, but no distributee shall be liable for anamount exceeding the amount of the estate or fund so distributed tohim. If more than one (1) distributee is liable to the creditor, thedistributee shall make all distributees who can be reached by processparties to the action. By its judgment the court shall determine theamount of the liability of each of the defendants as betweenthemselves, but if any be insolvent or unable to pay his proportion,or beyond the reach of process, the others, to the extent of theirrespective liabilities, shall nevertheless be liable to the creditor forthe 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 beliable to indemnify all who, by reason of such failure on the person'spart, have paid more than their just proportion of the debt, theindemnity 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 thefollowing classes. If the applicable assets of the estate areinsufficient to pay all claims in full, the personal representative shallmake payment in the following order:
(1) Costs and expenses of administration.
(2) Reasonable funeral expenses. However, in any estate inwhich the decedent was a recipient of public assistance underIC 12-1-1 through IC 12-1-12 (before its repeal) or any of thefollowing, the amount of funeral expenses having priority overany claim for the recovery of public assistance shall not exceedthe limitations provided for under IC 12-14-6, IC 12-14-17, andIC 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 theUnited States.
(5) Reasonable and necessary medical expenses of the lastsickness of the decedent, including compensation of personsattending him.
(6) All debts and taxes having preference under the laws of thisstate; but no personal representative shall be required to pay anytaxes on any property of the decedent unless such taxes are dueand payable before possession thereof is delivered by thepersonal 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 overany other claim of the same class, nor shall a claim due and payablebe entitled to a preference over claims not due.
(Formerly: Acts 1953, c.112, s.1409; Acts 1955, c.258, s.5; Acts1965, c.371, s.1; Acts 1975, P.L.288, SEC.23.) As amended by Acts1976, 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) daysafter the date of the first published notice to creditors, the personalrepresentative shall allow or disallow each claim filed within three(3) months after the date of the first published notice to creditors bymaking appropriate notations on the margin of the claim andallowance docket showing the action taken as to the claim. If apersonal representative determines that the personal representativeshould not allow a claim in full, the claim shall be noted"disallowed". The clerk of the court shall give written notice to acreditor if a claim has been disallowed in full or in part. All claimsthat are disallowed, or are neither allowed nor disallowed withinthree (3) months and fifteen (15) days, shall be set for trial in theprobate court upon the petition of either party to the claim. Thepersonal representative shall make an appropriate notation of anycompromise or adjustment on the margin of the claim and allowancedocket. If the personal representative, after allowing a claim andbefore paying it, determines that the claim should not have beenallowed, the personal representative shall change the notation on theclaim and allowance docket from "allowed" to "disallowed" and givewritten notice to the creditor. If a claim has been paid in full or inpart, 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 uponapplication of the claimant or of the personal representative, or maybe allowed at any accounting, regardless of whether or not they havebeen 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 herepresents, it shall be the duty of every personal representative toinquire into the correctness of all claims against the estate and makeall available defenses thereto, and if he fails so to do, he shall beliable on his bond, at the suit of any person interested in the estate,for all damages sustained by the estate in consequence of suchneglect.
(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 benecessary for the personal representative to plead any matter by wayof answer, except a set-off or counter-claim, to which the plaintiffshall reply. If the personal representative pleads any other matter byway of defense, the claimant shall reply thereto; the sufficiency ofthe statement of the claim, or any subsequent pleading, may be testedby appropriate pleadings, and if objection be made that the assignorof 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 toanswer to his interest in the claim and to sue out process against theassignor to answer in that behalf. And if it shall be shown to thecourt that any person is bound with the decedent in any contractwhich is the foundation of the claim, the court shall direct that theclaim be amended by making such person a defendant in the action,and process shall be issued against and served upon him, andthereafter the action shall be prosecuted against him as a codefendantwith such personal representative and judgment shall be renderedaccordingly.
(b) If any claimant fails to attend and prosecute his claim at thetime the same shall be set down for trial, the court shall dismiss theclaim; and any subsequent prosecution of the claim against the estateshall be at the costs of the claimant, unless good cause for suchfailure 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 conductedas in ordinary civil cases, and if the finding is for the claimant thecourt shall allow the claim in full or in part, and costs, to be paid outof the assets of the estate under section 19 of this chapter. If theclaim sued on is secured by a lien upon property of the deceased, thedate and extent shall be ascertained and fixed by the finding andjudgment. If the finding is in favor of the personal representativeupon a set-off or counter-claim, judgment shall be rendered thereonas in ordinary cases. If a set-off or counter-claim is pleaded, and theclaim is afterward dismissed, the personal representative maynevertheless proceed to trial and judgment on the set-off orcounter-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 writtenpetition to the court, shall be allowed, at his expense, to defend suchclaim, and until such claim is adjudicated the personal representativeshall not pay the same.
(b) In all cases when a claim against the estate is paid by thepersonal representative, without payment thereof having beenordered by the court, whether or not such claim has been filed, anyperson interested in the estate may raise whatever objections he mayhave to the payment of such claim by filing his objections to the nextaccount 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 anyallowance or judgment rendered upon a claim against a decedent'sestate for the collection thereof out of the assets of the estate, but allsuch claims shall be paid by the personal representative in full or prorata, in due course of administration; provided, however, theprovisions of this section shall not be construed to prevent theenforcement of mortgages, pledges or other liens upon real orpersonal 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 thecourt having jurisdiction of the decedent's estate no proceedings shallbe instituted before the end of three (3) months from the death of thedecedent to enforce the lien of any judgment rendered against the
decedent in his lifetime upon real estate or to enforce any decreespecifically directing the sale of such real estate to discharge any lienor liability created or suffered by the decedent, nor shall any suit bebrought before that time against the heirs or devisees of the deceasedto foreclose any mortgage or other lien thereon; and in case of suit toforeclose any mortgage or other lien thereon, the personalrepresentative shall be made a party defendant thereto; and if thepersonal representative shall be diligently prosecuting hisproceedings to sell the real estate of the deceased for the purpose ofmaking assets to discharge such liens, further proceedings for thesale thereof by the holders of liens thereon shall be stayed, upon theapplication of the personal representative. This section does notapply to cases where, before the end of the three (3) months, the realestate shall have been sold by the personal representative subject toliens 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 personalrepresentative against the estate the personal representativerepresents that accrued before the death of the decedent is filedagainst an estate, with the affidavit of the claimant attached, theclaim shall not be acted upon by the personal representative unlessall interested persons who would be affected by the allowance of theclaim consent in writing to it. If all interested persons do not consentto the payment of that claim, the judge shall appoint a specialpersonal representative who shall examine the nature of the claim. Ifthe special personal representative determines that the claim is just,the special personal representative shall allow the claim. If thespecial personal representative believes it is in the best interests ofthe estate to oppose the claim, the special personal representativemay:
(1) employ counsel to represent the special personalrepresentative;
(2) disallow the claim; and
(3) ask the court to set the claim for trial.
The special personal representative and the special personalrepresentative's counsel shall be paid out of the estate fees forservices that the court determines reasonable and appropriate.
(b) Claims of personal representatives shall not be deemed civilactions or proceedings for the purpose of determining court costs,unless the court arranges for active opposition provided in thissection.
(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 bestinterests of the estate, compromise any claim against the estate,whether due or not due, absolute or contingent, liquidated orunliquidated, but if such claim is not filed such compromise must beconsummated within three (3) months after the date of the firstpublished notice to creditors. In the absence of prior authorization orsubsequent approval by the court, no compromise shall bind theestate.
(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 ofinsolvency
Sec. 19. (a) The personal representative at any time shall pay theclaims 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 theperiod allowed under IC 29-1-7-7, if applicable, and the court mayrequire bond or security to be given by the creditor to refund suchpart of such payment as may be necessary to make payment inaccordance with this title.
(b) Prior to the expiration of three (3) months after the date of thefirst published notice to creditors or the period allowed underIC 29-1-7-7, the personal representative, if the estate clearly issolvent, may pay any claims that the personal representative believesare just and correct, whether or not the claims have been filed. Thepersonal representative may require bond or security to be given bythe creditor to refund any part of the payment as the court maysubsequently order. The personal representative, following all suchpayments, shall include them in the personal representative's nextaccount and they shall be considered proper payments under this titleif they are approved by the court as a part of the account.
(c) Upon the expiration of three (3) months after the date of thefirst published notice to creditors or the period allowed underIC 29-1-7-7 and the final adjudication of all claims filed against theestate, the personal representative shall proceed to pay the claimsthat have been allowed against the estate in accordance with this titlethat 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 goodor sufficient cause, the personal representative may report that factto 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 bymortgage, pledge or other lien, the personal representative may pay
such encumbrance or any part thereof, renew or extend anyobligation secured by the encumbrance or may convey or transfersuch assets to the creditor in satisfaction of his lien, in whole or inpart, 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 suchconveyance or transfer the personal representative must obtain priorauthorization of the court and as to any such payment, renewal orextension the personal representative must obtain prior authorizationor subsequent approval of the court. The making of such paymentshall not increase the share of the distributee entitled to suchencumbered 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 inthe possession of the personal representative adverse to the estate,the person may file, prior to the expiration of three (3) months afterthe date of the first published notice to creditors, a petition with thecourt having jurisdiction of the estate setting out the facts concerningsuch interest, and thereupon the court shall cause such notice to begiven to such parties as it deems proper, and the case shall be set fortrial 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.