Colo. Rev. Stat. § 15-14-429

Current through 11/5/2024 election
Section 15-14-429 - Presentation and allowance of claims
(1) A conservator may pay, or secure by encumbering assets of the estate, claims against the estate or against the protected person arising before or during the conservatorship upon their presentation and allowance in accordance with the priorities stated in subsection (4) of this section. A claimant may present a claim by:
(a) Delivering or mailing to the court-appointed conservator a written statement of the claim, indicating its basis, the name and address of the claimant, and the amount claimed; or
(b) Filing a written statement of the claim with the clerk of the court, in the form approved by the supreme court, and delivering or mailing a copy of the statement to the conservator.
(2) A claim is deemed presented on receipt of the written statement of claim by the conservator or the filing of the claim with the court, whichever first occurs. A presented claim is deemed allowed if it is not disallowed by written statement sent or delivered by the conservator to the claimant within sixty-three days after its presentation. The conservator before payment may change an allowance or deemed allowance to a disallowance in whole or in part, but not after allowance under a court order or judgment or an order directing payment of the claim. The presentation of a claim tolls the running of any statute of limitations relating to the claim until thirty-five days after its disallowance. If a claim is not yet due, the claim shall state the date when it will become due. If a claim is contingent or unliquidated, the claim shall state the nature of the uncertainty or the anticipated due date of the claim.
(3) A claimant whose claim has not been paid may petition the court for determination of the claim at any time before it is barred by a statute of limitations and, upon due proof, procure an order for its allowance, payment, or security by encumbering assets of the estate. If a proceeding is pending against a protected person at the time of appointment of a conservator or is initiated against the protected person thereafter, the moving party shall give to the conservator notice of any proceeding that could result in creating a claim against the estate.
(4) If it appears that the estate is likely to be exhausted before all existing claims are paid:
(a) The conservator may, without a court order, distribute the estate in money or in kind in payment of claims in the following order:
(I) Costs and expenses of administration;
(II) Claims of the federal or state government having priority under other law;
(III) Claims incurred by the conservator for support, care, education, health, and welfare provided to the protected person or individuals who are in fact dependent on the protected person;
(IV) Claims arising before the conservatorship; and
(V) All other claims.
(b)
(I) At any time during the administration, if the payment of claims as set forth in paragraph (a) of this subsection (4) would substantially deplete the conservatorship estate and leave the conservatorship estate with insufficient funds to pay for the protected person's basic living and health-care expenses, the conservator may file a motion with the court seeking permission to withhold payment of allowed claims, both those existing and incurred after the date of the motion, and pay only the expenses, claims, and amounts requested by the conservator regardless of the priority of the claim, as set forth in said paragraph (a).
(II) If the conservator files a motion as described in subparagraph (I) of this paragraph (b), the factors to be considered by the court include, but are not limited to:
(A) The current and future projected care costs of the protected person;
(B) The current and projected assets of the protected person, including the assets of the conservatorship estate;
(C) The life expectancy of the protected person;
(D) The current and projected income of the protected person and the conservatorship estate;
(E) The protected person's eligibility for benefits to cover living and health-care expenses; and
(F) Whether there are individuals who are in fact dependent on the protected person.
(III) Notice of a motion filed under this section shall be provided to all interested persons and to all creditors whose claims are affected.
(IV) If any order is entered restricting payments on any creditor's claims, the conservator shall provide information in the annual report regarding whether the order restricting payment of the creditor's claims should be modified.
(c) to (e) (Deleted by amendment, L. 2013.)
(5) Unless the court orders otherwise, allowed claims within the same class shall be paid pro rata. Preference may not be given in the payment of a claim over any other claim of the same class, and a claim due and payable may not be preferred over a claim not due.
(6) If assets of the conservatorship are adequate to meet all existing claims, the court, acting in the best interest of the protected person, may order the conservator to grant a security interest in the conservatorship estate for the payment of any or all claims at a future date.
(7) Nothing in this section affects or prevents:
(a) Any proceeding to enforce any mortgage, pledge, or other lien upon property of the estate; or
(b) To the limits of the insurance protection only, any proceeding to establish liability of the protected person for which he or she is protected by liability insurance.
(8) Unless otherwise provided in any judgment in another court entered against the protected person or the protected person's estate, an allowed claim bears interest at the legal rate for the period commencing sixty-three days after the time the claim was originally filed with the court or delivered to the conservator, unless based on a contract making a provision for interest, in which case, such claim bears interest in accordance with that contract's provisions.
(9) Each written statement of a claim shall include:
(a) A request or demand for payment from the protected person or the conservatorship estate; and
(b) Sufficient information to allow the conservator to investigate and respond to the claim, including its basis, the name and address of the claimant, and the amount claimed.

C.R.S. § 15-14-429

Amended by 2013 Ch. 190, § 9, eff. 8/7/2013.
L. 2000: Entire part R&RE, p. 1829, § 1, effective 1/1/2001 (see § 15-17-103 ). L. 2006: (1) and (2) amended and (9) added, p. 376, § 5, effective July 1. L. 2012: (2) and (8) amended, (SB 12-175), ch. 208, p. 840, § 53, effective July 1. L. 2013: (4) and (5) amended, (SB 13-077), ch. 190, p. 772, § 9, effective August 7.

This section is similar to former § 15-14-428 as it existed prior to 2001.