When Uncertain Claims Become Certain
Estate administration 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, a lawsuit that has not been resolved, or an obligation that depends on something that may or may not happen. This statute addresses all three situations.
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)If the uncertainty resolves before the estate finishes distributing assets, the claim is simply paid like any other allowed claim in its priority class. The complication arises when the estate needs to close but the claim remains uncertain.
Options When Claims Remain Unresolved
Arizona law does not force the estate to stay open indefinitely waiting for every contingent claim to ripen. Instead, it provides practical alternatives. If the claimant agrees, they can accept the present value of the claim, 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)Alternatively, the personal representative or the court can set up arrangements to protect the creditor's interest while allowing the estate to move forward. These arrangements might include creating a trust to hold funds, placing a mortgage on distributed property, or requiring a distributee to post a bond. Each approach balances the creditor's right to eventual payment against the family's need to settle the estate within a reasonable time.