Colorado § 15-12-807 - Payment of claims.

§ 15-12-807. Payment of claims.

(1) One year after the decedent's death, the personal representative shall proceed to pay the claims allowed against the estate in the order of priority prescribed, after making provision for family and exempt property 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 in this subsection (1) 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 he 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) of this section 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 his priority.

Source: L. 73: R&RE, p. 1594, § 1. C.R.S. 1963: § 153-3-807. L. 90: (1) amended, p. 906, § 4, effective July 1.

ANNOTATION

Annotator's note. Since § 15-12-807 is similar to repealed § 153-12-13, C.R.S. 1963, and § 152-12-11, CRS 53, relevant cases construing those provisions have been included in the annotations to this section.

Personal representative cannot defeat rights of creditor by failing timely to allow or disallow claims. In re Estate of Hall, 936 P.2d 592 (Colo. App. 1996), aff'd, 948 P.2d 539 (Colo. 1997).

Statutes must be read together. A claimant who has presented a claim pursuant to § 15-12-804(1) rather than commencing a civil proceeding under § 15-12-804(2) has opted for consideration of the claim on its merits by the personal representative. If, thereafter, a claim initially deemed allowed is purportedly disallowed or not paid by the personal representative, the claimant is entitled to petition the court for allowance and payment of the claim under this section or § 15-12-806, even though such petition is brought more than 60 days after the deadline for presenting a claim pursuant to § 15-12-803. In re Estate of Hall, 936 P.2d 592 (Colo. App. 1996), aff'd, 948 P.2d 539 (Colo. 1997).

An order directing payment of a claim forthwith does not have the effect of relieving the executor of performing his duties in accordance with law. Irwin v. Robinson, 143 Colo. 336, 355 P.2d 108 (1960).

When a surcharge is adjudged against a fiduciary, the amount is required to be paid into the estate forthwith. It becomes an asset of the estate and subject to the claims against the estate. The claim here was subjected to certain conditions because of its late filing. The executor, whose improper handling of this claim caused it to be classified as a late filed claim, should not benefit by these conditions by being reimbursed from these estate assets for expenses thereby prejudicing the right to payment on the claim. In re Estate of Blanpied v. Robinson, 163 Colo. 433, 431 P.2d 481 (1967).