Minnesota Session Laws - 1989, Regular Session

  

                         Laws of Minnesota 1989 

                        CHAPTER 163-H.F.No. 1151 
           An act relating to probate; changing procedure for 
          notice to certain creditors; changing certain time 
          limits; amending Minnesota Statutes 1988, sections 
          524.3-801; 524.3-802; 524.3-803; and 524.3-807.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1988, section 524.3-801, is 
amended to read: 
    524.3-801 [NOTICE TO CREDITORS.] 
    (a) Unless notice has already been given under this 
section, upon appointment of a general personal representative 
in informal proceedings or upon the filing of a petition for 
formal appointment of a general personal representative, notice 
thereof, in the form prescribed by court rule, shall be given 
under the direction of the court administrator by publication 
once a week for two successive weeks in a legal newspaper in the 
county wherein the proceedings are pending giving the name and 
address of the general personal representative and notifying 
creditors of the estate to present their claims within four 
months after the date of the court administrator's notice which 
is subsequently published or be forever barred, unless they are 
entitled to further service of notice under paragraph (b) or (c).
     (b)(1) Within three months after:  (i) the date of the 
first publication of the notice; or (ii) the effective date of 
this section, whichever is later, the personal representative 
may determine, in the personal representative's discretion, that 
it is or is not advisable to conduct a reasonably diligent 
search for creditors of the decedent who are either not known or 
not identified.  If the personal representative determines that 
a reasonably diligent search is advisable, the personal 
representative shall conduct the search. 
    (2) If the notice is first published after the effective 
date of this section, the personal representative shall, within 
three months after the date of the first publication of the 
notice, serve a copy of the notice upon each then known and 
identified creditor in the manner provided in paragraph (c).  If 
notice was first published under the applicable provisions of 
law under the direction of the court administrator before the 
effective date of this section and if a personal representative 
is empowered to act at any time after the effective date of this 
section, the personal representative shall, within three months 
after the effective date of this section, serve upon the then 
known and identified creditors in the manner provided in 
paragraph (c) a copy of the notice as published, together with a 
supplementary notice requiring each of the creditors to present 
any claim within one month after the date of the service of the 
notice or be forever barred. 
    (3) Under this section, a creditor is "known" if:  (i) the 
personal representative knows that the creditor has asserted a 
claim that arose during the decedent's life against either the 
decedent or the decedent's estate; or (ii) the creditor has 
asserted a claim that arose during the decedent's life and the 
fact is clearly disclosed in accessible financial records known 
and available to the personal representative.  Under this 
section, a creditor is "identified" if the personal 
representative's knowledge of the name and address of the 
creditor will permit service of notice to be made under 
paragraph (c).  
     (c) The personal representative shall serve a copy of any 
notice and any supplementary notice required by paragraph (b), 
clause (1) or (2), upon each creditor of the decedent who is 
then known to the personal representative and identified, except 
a creditor whose claim has either been presented to the personal 
representative or paid, either by delivery of a copy of the 
required notice to the creditor, or by mailing a copy of the 
notice to the creditor by certified, registered, or ordinary 
first class mail addressed to the creditor at the creditor's 
office or place of residence. 
    Sec. 2.  Minnesota Statutes 1988, section 524.3-802, is 
amended to read: 
    524.3-802 [STATUTES OF LIMITATIONS.] 
    Unless an estate is insolvent the personal representative, 
with the consent of all successors, may waive any defense of 
limitations available to the estate.  If the defense is not 
waived, no claim which was barred by any statute of limitations 
at the time of the decedent's death shall be allowed or paid.  
The running of any statute of limitations measured from some 
other event than death and advertisement for claims or notice 
given under section 1 against a decedent is suspended during the 
12 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 524.3-804 is equivalent to 
commencement of a proceeding on the claim.  
    Sec. 3.  Minnesota Statutes 1988, section 524.3-803, is 
amended to read: 
    524.3-803 [LIMITATIONS ON PRESENTATION OF CLAIMS.] 
    (a) All claims as defined in section 524.1-201 (4) against 
a decedent's estate which arose before 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, if not barred earlier by other 
statute of limitations, are barred against the estate, the 
personal representative, and the heirs and devisees of the 
decedent, unless presented as follows: 
    (1) in the case of a creditor who is only entitled, under 
the United States Constitution and under the Minnesota 
Constitution, to notice by publication under section 1, within 
four months after the date of the court administrator's notice 
to creditors which is subsequently published pursuant to section 
524.3-801 1; 
    (2) in the case of a creditor who was served with notice 
under section 1, paragraph (c), within the later to expire of 
four months after the date of the first publication of notice to 
creditors or one month after the service; 
    (3) within three years the later to expire of one year 
after the decedent's death, if or one year after the effective 
date of this section, whether or not notice to creditors has not 
been published or served under section 1, provided, however, 
that in the case of a decedent who died before the effective 
date of this section, no claim which was then barred by any 
provision of law may be deemed to have been revived by the 
amendment of this section. 
    (b) 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, are barred 
against the estate, the personal representative, and the heirs 
and devisees of the decedent, unless presented as follows: 
    (1) a claim based on a contract with the personal 
representative, within four months after performance by the 
personal representative is due; 
    (2) any other claim, within four months after it arises. 
    (c) Nothing in this section affects or prevents: 
    (1) any proceeding to enforce any mortgage, pledge, or 
other lien upon property of the estate; or 
    (2) any proceeding to establish liability of the decedent 
or the personal representative for which there is protection by 
liability insurance, to the limits of the insurance protection 
only.; 
    (3) the presentment and payment at any time within one year 
after the decedent's death of any claim arising before the death 
of the decedent that is referred to in section 524.3-715, clause 
(18), although the same may be otherwise barred under this 
section; or 
    (4) the presentment and payment at any time before a 
petition is filed in compliance with sections 524.3-1001 or 
524.3-1002 or a closing statement is filed under section 
524.3-1003, of: 
    (i) any claim arising after the death of the decedent that 
is referred to in section 524.3-715 (18) although the same may 
be otherwise barred hereunder; 
    (ii) any other claim, including claims subject to clause 
(3), which would otherwise be barred hereunder, upon allowance 
by the court upon petition of the personal representative or the 
claimant for cause shown on notice and hearing as the court may 
direct. 
    Sec. 4.  Minnesota Statutes 1988, section 524.3-807, is 
amended to read: 
    524.3-807 [PAYMENT OF CLAIMS.] 
    (a) Upon the expiration of four months from the date of the 
first publication of the notice to creditors the earliest of the 
time limitations provided in section 3 for the presentation of 
claims, the personal representative shall proceed to pay the 
claims allowed against the estate in the order of priority 
prescribed, after making provision for family maintenance and 
statutory allowances, for claims already presented which have 
not yet been allowed or whose allowance has been appealed, and 
for unbarred claims which 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.  
    (b) 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 
    (1) the payment was made before the expiration of the time 
limit stated in subsection (a) 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 
    (2) 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 claimant's priority.  
     Sec. 5.  [EFFECTIVE DATE.] 
     This act is effective 30 days after final enactment. 
    Presented to the governor May 16, 1989 
    Signed by the governor May 17, 1989, 6:18 p.m.