When Settling a Claim Makes More Sense Than Fighting It
Not every claim against an estate is clear-cut. Some are disputed. Some involve uncertain amounts. Others may not even be due yet. This statute gives the personal representative flexibility to negotiate and settle those claims rather than litigating each one to conclusion.
When a claim against the estate has been presented in any manner, the personal representative may, if it appears for the best interest of the estate, compromise the claim, whether due or not due, absolute or contingent, liquidated or unliquidated.
A.R.S. § 14-3813This authority covers a wide range of situations. A creditor might submit a bill for services that the estate disputes. A contractor might claim money owed for unfinished work. A former business partner might assert a debt that the deceased never acknowledged. In each case, the personal representative can evaluate the claim and negotiate a resolution.
The "Best Interest" Standard
The personal representative is not free to settle claims without any standard. The statute requires that the compromise appear to be in the best interest of the estate. That means weighing the cost of litigation, the strength of the claim, and the potential impact on what beneficiaries ultimately receive.
Sometimes paying a reduced amount to resolve a disputed claim preserves more value for the estate than spending months and legal fees fighting it. This statute ensures the personal representative has the legal authority to make that practical judgment call, keeping the estate administration moving forward efficiently.