The Florida Senate

733.705  Payment of and objection to claims.--

(1)  The personal representative shall pay all claims within 1 year from the date of first publication of notice of administration, provided that the time shall be extended with respect to claims in litigation, unmatured claims, and contingent claims for the period necessary to dispose of such claims pursuant to subsections (4), (5), (6), and (7). The court may extend the time for payment of any claim upon a showing of good cause. No personal representative shall be compelled to pay the debts of the decedent until after the expiration of 5 months from the first publication of notice of administration. If any person brings an action against a personal representative within the 5 months on any claim to which the personal representative has filed no objection, the plaintiff shall not receive any costs or attorneys' fees if he or she prevails, nor shall the judgment change the class of the claim for payment under this code.

(2)  On or before the expiration of 4 months from the first publication of notice of administration or within 30 days from the timely filing of a claim, whichever occurs later, a personal representative or other interested person may file a written objection to a claim. An objection to a claim shall contain a statement that the claimant is limited to a period of 30 days from the date of service of the objection within which to bring an action on the claim as provided in subsection (4). The failure to include such a statement in the objection shall not affect the validity of the objection but may be considered as good cause for extending the time for filing an action or proceeding after the objection is filed. If an objection is filed, the person filing it shall serve a copy of the objection by registered or certified mail to the address of the claimant or the claimant's attorney as shown on the claim or by delivery to the claimant to whose claim the person objects or the claimant's attorney of record, if any, not later than 10 days after the objection has been filed, and also on the personal representative if the objection is filed by any interested person other than the personal representative. The failure to serve a copy of the objection constitutes an abandonment of the objection. For good cause, the court may extend the time for filing an objection to any claim or may extend the time for serving the objection. The extension of time shall be granted only after notice.

(3)  An objection by an interested person to a personal representative's proof of claim shall state the particular item or items to which the interested person objects and shall be filed and served as provided in subsection (2). Issues of liability as between the estate and the personal representative individually for items paid by the personal representative and thereafter listed in a personal representative's proof of claim shall be determined in the estate administration proceeding, in a proceeding for accounting, surcharge, or other appropriate proceeding, whether or not an objection has been filed. If an objection to an item listed as to be paid in a personal representative's proof of claim is filed and served, and the personal representative has not paid the item, the other subsections of this section shall apply as if a claim for the item had been filed by the claimant; but if the personal representative has paid the claim after listing it as to be paid, issues of liability as between the estate and the personal representative individually shall be determined in the manner provided for an item listed as paid.

(4)  The claimant is limited to a period of 30 days from the date of service of an objection within which to bring an independent action upon the claim, or a declaratory action to establish the validity and amount of an unmatured claim which is not yet due but which is certain to become due in the future, or a declaratory action to establish the validity of a contingent claim upon which no cause of action has accrued on the date of service of an objection and that may or may not become due in the future. For good cause, the court may extend the time for filing an action or proceeding after objection is filed. The extension of time shall be granted only after notice. No action or proceeding on the claim shall be brought against the personal representative after the time limited above, and any such claim is thereafter forever barred without any court order. If an objection is filed to the claim of any creditor and an action is brought by the creditor to establish his or her claim, a judgment establishing the claim shall give it no priority over claims of the same class to which it belongs.

(5)  A claimant may bring an independent action or declaratory action upon a claim which was not timely filed pursuant to s. 733.702(1) only if the claimant has been granted an extension of time to file the claim pursuant to s. 733.702(3).

(6)  If an unmatured claim has not become due before the time for distribution of an estate, the personal representative may prepay the full amount of principal plus accrued interest due on the claim, without discount and without penalty, regardless of any prohibition against prepayment or provision for penalty in any instrument on which the claim is founded. If the claim is not prepaid, no order of discharge may be entered until the creditor and personal representative have filed an agreement disposing of the claim, or in the absence of an agreement until the court provides for payment by one of the following methods:

(a)  Requiring the personal representative to reserve such assets as the court determines to be adequate to pay the claim when it becomes due; in fixing the amount to be reserved, the court may determine the value of any security or collateral to which the creditor may resort for payment of the claim and may direct the reservation, if necessary, of sufficient assets to pay the claim or to pay the difference between the value of any security or collateral and the amount necessary to pay the claim. If the estate is insolvent, the court may direct a proportionate amount to be reserved. The court shall direct that the amount reserved be retained by the personal representative until the time that the claim becomes due, and that so much of the reserved amount as is not used for payment be distributed thereafter according to law;

(b)  Requiring that the claim be adequately secured by a mortgage, pledge, bond, trust, guaranty, or other security, as may be determined by the court, the security to remain in effect until the time that the claim becomes due, and that so much of the security or collateral as is not needed for payment be distributed thereafter according to law; or

(c)  Making such other provision for the disposition or satisfaction of the claim as is equitable, and in a manner so as not to delay unreasonably the closing of the estate.

(7)  If no cause of action has accrued on a contingent claim before the time for distribution of an estate, no order of discharge may be entered until the creditor and the personal representative have filed an agreement disposing of the claim or, in the absence of such agreement, until:

(a)  The court determines that the claim is adequately secured or that it has no value,

(b)  Three months from the date on which a cause of action accrues upon the claim, provided that no action on the claim is then pending,

(c)  Five years from the date of first publication of notice of administration, or

(d)  The court provides for payment of the claim upon the happening of the contingency by one of the methods described in paragraph (a), paragraph (b), or paragraph (c) of subsection (6),

whichever occurs first. No action or proceeding may be brought against the personal representative on the claim after the time limited above, and any such claim shall thereafter be forever barred without order of court. If an action is brought within the time limited above, a judgment establishing the claim shall give it no priority over claims of the same class to which it belongs.

(8)  No interest shall be paid by the personal representative or allowed by the court on a claim until the expiration of 5 calendar months from the first publication of the notice of administration, unless the claim is founded on a written obligation of the decedent providing for the payment of interest. Interest shall be paid by the personal representative on written obligations of the decedent providing for the payment of interest. On all other claims, interest shall be allowed and paid beginning 5 months from the first publication of the notice of administration.

(9)  The court may determine all issues concerning claims or matters not requiring trial by jury.

(10)  An order for extension of time authorized under this section may be entered only in the estate administration proceeding.

History.--s. 1, ch. 74-106; s. 86, ch. 75-220; s. 34, ch. 77-87; s. 1, ch. 77-174; s. 1, ch. 84-25; s. 1, ch. 86-249; s. 7, ch. 88-340; s. 7, ch. 89-340; s. 2, ch. 91-61; s. 1017, ch. 97-102.

Note.--Created from former s. 733.18.