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.
Structure Indiana Code
Chapter 14. Claims Against the Estate
29-1-14-0.1. Application of Certain Amendments to Chapter
29-1-14-1. Limitations; Filing; Claims Barred or Not; Liens; Tort Claims
29-1-14-2. Actions; Definite Statement; Personal Representative Actions; Deductions From Claims
29-1-14-3. Future Claims; Payment; Bonds
29-1-14-4. Actions; Joint Contracts and Judgment
29-1-14-5. Joint Contracts and Judgments Deemed Joint and Several
29-1-14-6. Secured Claims, Allowance, and Payment
29-1-14-7. Contingent Claims; Payment; Bond of Distributee
29-1-14-8. Contingent Claims; Liability of Distributees; Contribution
29-1-14-9. Classification of Claims; Preferences
29-1-14-10. Allowance; Disallowance; Expenses of Administration
29-1-14-11. Inquiry Into Correctness; Liability on Bond
29-1-14-12. Trial; Pleading; Dismissal
29-1-14-13. Trial of Claims; Judgment; Set-Off or Counterclaim
29-1-14-14. Petitions; Defend Claims; Objections to Payment
29-1-14-15. Execution; Final Process; Payment; Mortgages, Pledges, or Liens; Enforcement
29-1-14-16. Liens and Mortgages, Enforcement; Sale of Real Estate; Exception
29-1-14-17. Personal Representative Claims
29-1-14-18. Compromise of Claims
29-1-14-19. Payment of Claims; Bond or Security of Creditor; Report of Insolvency
29-1-14-20. Mortgage; Pledge; Lien; Payment; Renewal; Extension