When Uncertain Claims Become Certain
Estate management does not always involve clear-cut debts with fixed amounts and due dates. Sometimes a claim is based on a contract that has not matured. Other claims depend on events that may or may not happen.
If a claim which will become due at a future time or a contingent or unliquidated claim becomes due or certain before the distribution of the estate, and if the claim has been allowed or established by a proceeding, it is paid in the same manner as presently due and absolute claims of the same class.
A.R.S. § 14-3810(A)Sometimes the uncertainty resolves before the estate finishes distributing assets. In that case, the claim is paid like any other allowed claim. The complication arises when the estate needs to close but the claim remains uncertain.
Options When Claims Remain Unresolved
The law does not force the estate to stay open indefinitely. If the claimant agrees, they can accept the present value of the claim. The amount is discounted for the uncertainty involved.
Arrangement for future payment, or possible payment, on the happening of the contingency or on liquidation may be made by creating a trust, giving a mortgage, obtaining a bond or security from a distributee, or otherwise.
A.R.S. § 14-3810(B)(2)The personal representative or the court can set up arrangements to protect the creditor's interest. For example, they might create a trust to hold funds or require a distributee to post a bond. Each approach balances the creditor's right to payment against the family's need to settle the estate.