# Title 30.1 — Uniform Probate Code

## Chapter 30.1-19 — Creditors' Claims

### § 30.1-19-01. (3-801) Notice to creditors.

Unless notice has already been given under this section, a personal representative upon
appointment may publish a notice to creditors whose identities are not reasonably
ascertainable. The notice must be published once a week for three successive weeks in a
newspaper of general circulation in the county. If the personal representative elects to publish a
notice to creditors then, in addition to publishing the notice to creditors, the personal
representative shall mail a copy of the notice to those creditors whose identities are known to
the personal representative or are reasonably ascertainable and who have not already filed a
claim. The notice must announce the personal representative's appointment and address and
notify creditors of the estate to present their claims within three months after the date of the first
publication or mailing of the notice or be forever barred. For the purpose of this section, a
reasonably ascertainable creditor includes a creditor who regularly submits billings to the
decedent or the decedent's estate and to whose billings the personal representative has had
access.
### § 30.1-19-02. (3-802) Statutes of limitations.

Unless an estate is insolvent, the personal representative, with the consent of all
successors whose interests would be affected, may waive any defense of limitations available to
the estate. If the defense is not waived, no claim that was barred by any statute of limitations at
the time of the decedent's death may be allowed or paid. The running of any statute of
limitations measured from some other event than death and advertisement and mailing of notice
for claims against a decedent is suspended during the three months following the decedent's
death but resumes thereafter as to claims not barred pursuant to the sections which follow. For
purposes of any statute of limitations, the proper presentation of a claim under section
### § 30.1-19-03. (3-803) Limitations on presentation of claims.

1. All claims against a decedent's estate which arose before the death of the decedent,
including claims of the state or any political subdivision, whether due or to become
due, absolute or contingent, liquidated or unliquidated, founded on contract, tort, or
other legal basis, if not barred earlier by other statute of limitations, are barred against
the estate, the personal representative, the heirs and devisees of the decedent, and
nonprobate transferees unless presented as follows:
a. Within three months after the date of the first publication and mailing of notice to
creditors if notice is given in compliance with section 30.1-19-01; provided, claims
barred by the nonclaim statute at the decedent's domicile before the first
publication for claims in this state are also barred in this state.
b. Within three years after the decedent's death, if notice to creditors has not been
published and mailed.
2. All claims against a decedent's estate which arise at or after the death of the decedent,
including claims of the state and any subdivision thereof, whether due or to become
due, absolute or contingent, liquidated or unliquidated, founded on contract, tort, or
other legal basis, are barred against the estate, the personal representative, and the
heirs and devisees of the decedent, unless presented as follows:
a. A claim based on a contract with the personal representative, within four months
after performance by the personal representative is due.
b. Any other claim, within three months after it arises.
3. Nothing in this section affects or prevents:
a. Any proceeding to enforce any mortgage, pledge, or other lien upon property of
the estate.

b. To the limits of the insurance protection only, any proceeding to establish liability
of the decedent or the personal representative for which the decedent or personal
representative is protected by liability insurance.
### § 30.1-19-04. (3-804) Manner of presentation of claims.

Claims against a decedent's estate may be presented as follows:
1. The claimant may deliver or mail to the personal representative and any attorney of
record for the estate a written statement of the claim indicating its basis, the name and
address of the claimant, and the amount claimed, or may file a written statement of the
claim, in the form prescribed by rule, with the clerk of the court. The claim is deemed
presented on the first to occur, either receipt of the written statement of claim by the
personal representative, or the filing of the claim with the court. If a claim is not yet
due, the claimant shall state the date when it will become due. If the claim is
contingent or unliquidated, the claimant shall state the nature of the uncertainty. If the
claim is secured, the claimant shall describe the security. Failure to describe correctly
the security, the nature of any uncertainty, and the due date of a claim not yet due
does not invalidate the presentation.
2. The claimant may commence a proceeding against the personal representative in any
court where the personal representative may be subjected to jurisdiction, to obtain
payment of the claimant's claim against the estate, but the commencement of the
proceeding must occur within the time limited for presenting the claim. A presentation
of claim is not required in regard to matters claimed in proceedings against the
decedent which were pending at the time of death.
3. If a claim is presented under subsection 1, a proceeding on the claim may not be
commenced more than sixty days after the personal representative has mailed a
notice of disallowance, but, in the case of a claim which is not presently due or which
is contingent or unliquidated, the personal representative may consent to an extension
of the sixty-day period, or to avoid injustice, the court, on petition, may order an
extension of the sixty-day period, but in no event may the extension run beyond the
applicable statute of limitations.
### § 30.1-19-05. (3-805) Classification of claims.

1. If the applicable assets of the estate are insufficient to pay all claims in full, the
personal representative shall make payment in the following order:
a. Costs and expenses of administration.
b. Reasonable funeral expenses.
c. Debts and taxes with preference under federal law.
d. Reasonable and necessary medical and hospital expenses of the last illness of
the decedent, including compensation of persons attending the decedent.
e. The decedent's child support obligations that were due and unpaid before death.
f. Debts and taxes with preference under other laws of this state.
g. All other claims.
2. No preference shall be given in the payment of any claim over any other claim of the
same class, and a claim due and payable shall not be entitled to a preference over
claims not due.
### § 30.1-19-06. (3-806) Allowance of claims.

1. As to claims presented in the manner described in section 30.1-19-04 within the time
limit prescribed in section 30.1-19-03, the personal representative may mail a notice to
any claimant stating that the claim has been disallowed. If, after allowing or disallowing
a claim, the personal representative changes the personal representative's decision
concerning the claim, the personal representative shall notify the claimant. The
personal representative may not change a disallowance of a claim after the time for
the claimant to file a petition for allowance or to commence a proceeding on the claim
has run and the claim has been barred. Every claim which is disallowed, in whole or in

part, by the personal representative is barred so far as not allowed unless the claimant
files a petition for allowance in the court or commences a proceeding against the
personal representative not later than sixty days after the mailing of the notice of
disallowance or partial allowance if the notice warns the claimant of the impending bar.
Failure of the personal representative to mail notice to a claimant of action on the
claimant's claim for sixty days after the time for original presentation of the claim has
expired has the effect of a notice of allowance.
2. After allowing a claim, the personal representative may before payment change the
allowance to a disallowance in whole or in part, but not after allowance by a court
order or judgment or an order directing payment of the claim. The personal
representative shall notify the claimant of the change to disallowance, and the
disallowed claim is then subject to bar as provided under subsection 1. After
disallowing a claim, the personal representative may change a disallowance to an
allowance in whole or in part until it is barred under subsection 1 and after it is barred,
it may be allowed and paid only if the estate is solvent and all successors whose
interests would be affected consent.
3. Upon the petition of the personal representative or of a claimant in a proceeding for
the purpose, the court may allow, in whole or in part, any claim or claims presented to
the personal representative or filed with the clerk of the court in due time and not
barred by subsection 1. Notice in this proceeding must be given to the claimant, the
personal representative, and those other persons interested in the estate as the court
may direct, by order entered at the time the proceeding is commenced.
4. A judgment in a proceeding in another court against a personal representative to
enforce a claim against a decedent's estate is an allowance of the claim.
5. Unless otherwise provided in any judgment in another court entered against the
personal representative, allowed claims bear interest at the legal rate for the period
commencing sixty days after the time for original presentation of the claim has expired
unless based on a contract making a provision for interest, in which case allowed
claims bear interest in accordance with that provision.
### § 30.1-19-07. (3-807) Payment of claims.

1. Upon the expiration of three months from the date of the first publication and mailing of
the notice to creditors, the personal representative shall proceed to pay the claims
allowed against the estate in the order of priority prescribed, after making provision for
homestead, family, and support allowances, for claims already presented which have
not yet been allowed or whose allowance has been appealed, and for unbarred claims
that may yet be presented, including costs and expenses of administration. By petition
to the court in a proceeding for the purpose, or by appropriate motion if the
administration is supervised, a claimant whose claim has been allowed but not paid as
provided herein may secure an order directing the personal representative to pay the
claim to the extent that funds of the estate are available for the payment.
2. The personal representative at any time may pay any just claim which has not been
barred, with or without formal presentation, but the personal representative is
personally liable to any other claimant whose claim is allowed and who is injured by
such payment if:
a. The payment was made before the expiration of the time limit stated in
subsection 1 and the personal representative failed to require the payee to give
adequate security for the refund of any of the payment necessary to pay other
claimants; or
b. The payment was made, due to the negligence or willful fault of the personal
representative, in such manner as to deprive the injured claimant of the injured
claimant's priority.
### § 30.1-19-08. (3-808) Individual liability of personal representative.

1. Unless otherwise provided in the contract, a personal representative is not individually
liable on a contract properly entered into in the personal representative's fiduciary

capacity in the course of administration of the estate unless the personal
representative fails to reveal the personal representative's representative capacity and
identify the estate in the contract.
2. A personal representative is individually liable for obligations arising from ownership or
control of the estate or for torts committed in the course of administration of the estate
only if the personal representative is personally at fault.
3. Claims based on contracts entered into by a personal representative in the personal
representative's fiduciary capacity, on obligations arising from ownership or control of
the estate or on torts committed in the course of estate administration, may be
asserted against the estate by proceeding against the personal representative in the
personal representative's fiduciary capacity, whether or not the personal representative
is individually liable therefor.
4. Issues of liability as between the estate and the personal representative individually
may be determined in a proceeding for accounting, surcharge or indemnification, or
other appropriate proceeding.
### § 30.1-19-09. (3-809) Secured claims.

Payment of a secured claim is upon the basis of the amount allowed if the creditor
surrenders the security. Otherwise, payment is upon the basis of one of the following:
1. If the creditor exhausts the security before receiving payment, unless precluded by
other law, upon the amount of the claim allowed less the fair value of the security.
2. If the creditor does not have the right to exhaust the security or has not done so, upon
the amount of the claim allowed less the value of the security determined by
converting it into money according to the terms of the agreement pursuant to which the
security was delivered to the creditor, or by the creditor and personal representative by
agreement, arbitration, compromise, or litigation.
### § 30.1-19-10. (3-810) Claims not due and contingent or unliquidated claims.

1. 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.
2. In other cases the personal representative or, on petition of the personal
representative or the claimant in a special proceeding for the purpose, the court may
provide for payment as follows:
a. If the claimant consents, the claimant may be paid the present or agreed value of
the claim, taking any uncertainty into account; or
b. 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.
### § 30.1-19-11. (3-811) Counterclaims.

In allowing a claim the personal representative may deduct any counterclaim which the
estate has against the claimant. In determining a claim against an estate, a court shall reduce
the amount allowed by the amount of any counterclaims and, if the counterclaims exceed the
claim, render a judgment against the claimant in the amount of the excess. A counterclaim,
liquidated or unliquidated, may arise from a transaction other than that upon which the claim is
based. A counterclaim may give rise to relief exceeding in amount or different in kind from that
sought in the claim.
### § 30.1-19-12. (3-812) Execution and levies prohibited.

No execution may issue upon nor may any levy be made against any property of the estate
under any judgment against a decedent or a personal representative, but this section shall not
be construed to prevent the enforcement of mortgages, pledges, or liens upon real or personal
property in an appropriate proceeding.

### § 30.1-19-13. (3-813) Compromise of claims.

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.
### § 30.1-19-14. (3-814) Encumbered assets.

If any assets of the estate are encumbered by mortgage, pledge, lien, or other security
interest, the personal representative may pay the encumbrance or any part thereof, renew or
extend any obligation secured by the encumbrance, or convey or transfer the assets to the
creditor in satisfaction of the creditor's lien, in whole or in part, whether or not the holder of the
encumbrance has presented a claim, if it appears to be for the best interest of the estate.
Payment of an encumbrance does not increase the share of the distributee entitled to the
encumbered assets unless the distributee is entitled to exoneration.
### § 30.1-19-15. (3-815) Administration in more than one state - Duty of personal

representative.
1. All assets of estates being administered in this state are subject to all claims,
allowances, and charges existing or established against the personal representative
wherever appointed.
2. If the estate, either in this state or as a whole, is insufficient to cover all family
exemptions and allowances determined by the law of the decedent's domicile, prior
charges, and claims, after satisfaction of the exemptions, allowances, and charges,
each claimant whose claim has been allowed either in this state or elsewhere in
administrations of which the personal representative is aware, is entitled to receive
payment of an equal proportion of the claimant's claim. If a preference or security in
regard to a claim is allowed in another jurisdiction but not in this state, the creditor so
benefited is to receive dividends from local assets only upon the balance of the
creditor's claim after deducting the amount of the benefit.
3. In case the family exemptions and allowances, prior charges, and claims of the entire
estate exceed the total value of the portions of the estate being administered
separately, and this state is not the state of the decedent's last domicile, the claims
allowed in this state shall be paid their proportion if local assets are adequate for the
purpose, and the balance of local assets shall be transferred to the domiciliary
personal representative. If local assets are not sufficient to pay all claims allowed in
this state the amount to which they are entitled, local assets shall be marshalled so
that each claim allowed in this state is paid its proportion as far as possible, after
taking into account all dividends on claims allowed in this state from assets in other
jurisdictions.
### § 30.1-19-16. (3-816) Final distribution to domiciliary representative.

The estate of a nonresident decedent being administered by a personal representative
appointed in this state shall, if there is a personal representative of the decedent's domicile
willing to receive it, be distributed to the domiciliary personal representative for the benefit of the
successors of the decedent unless:
1. By virtue of the decedent's will, if any, and applicable choice of law rules, the
successors are identified pursuant to the local law of this state without reference to the
local law of the decedent's domicile;
2. The personal representative of this state, after reasonable inquiry, is unaware of the
existence or identity of a domiciliary personal representative; or
3. The court orders otherwise in a proceeding for a closing order under section
In other cases, distribution of the estate of a decedent shall be made in the manner provided
elsewhere in this title.
