Session of 1998
                   
HOUSE BILL No. 2964
         
By Representative Weber
         
2-13
            9             AN ACT concerning probate; creating the court trustee administered
10             estate; amending K.S.A. 59-3202 and K.S.A. 1997 Supp. 23-495 and
11             23-496 and repealing the existing sections.
12            
13       Be it enacted by the Legislature of the State of Kansas:
14           New Section. 1. (a) In addition to the simplified estate and the su-
15       pervised estate, there is hereby created the court trustee administered
16       estate. If the court has determined that the estate shall be administered
17       as a court trustee administered estate, further proceedings shall be under
18       the provisions of this act unless the court requires such estate to be a
19       supervised estate.
20           (b) All procedures, notices, bonds, hearings and appeals under this
21       act shall proceed as set out under other provisions of the Kansas probate
22       code, unless otherwise provided herein.
23           (c) All letters testamentary and letters of administration issued pur-
24       suant to this act shall be designated on their face as letters testamentary
25       or letters of administration issued under the court trustee administered
26       estate.
27           (d) No provision of this act shall be construed to eliminate any re-
28       quired notice of petition to sell, lease or mortgage real property.
29           (e) If the district court does not have a court trustee in the judicial
30       district, the district court judge may act as the court trustee for the pur-
31       poses of this act.
32           New Sec. 2. (a) The executor or administrator appointed pursuant
33       to K.S.A. 59-3202 and amendments thereto, shall collect the decedent's
34       assets and have such assets appraised. Any real property owned by the
35       decedent shall be appraised by three different qualified appraisers.
36           (b) Upon the return of the appraisement by the executor or admin-
37       istrator to the clerk of the district court, the estate of a decedent, by order
38       of the court shall be referred to a court trustee for proof and determi-
39       nation of debts and claims of creditors, establishment of their priority,
40       determination of the amount of the respective shares of the legatees and
41       distributees, and any other matter necessary and proper for the settle-
42       ment of the estate. A court trustee may not charge to the estate a fee
43       greater than $250 for the settlement of an estate, except upon approval

HB 2964

2

  1       of the court because of complicating issues or problems attendant to such
  2       settlement and amount of time involved in and about the estate's reso-
  3       lution.
  4           (c) (1) If the executor or administrator delivers to the clerk an ap-
  5       praisement of the assets of the estate showing such assets value to be
  6       $200,000 or less, exclusive of nonprobate assets, the clerk shall record
  7       such appraisement and publish a notice once a week for two consecutive
  8       weeks in a newspaper of the county, authorized by law to publish legal
  9       notices, substantially as follows:
10      
NOTICE OF PENDING ESTATE
11           ``Notice is hereby given that settlement of the estate of the following named decedents
12       will proceed without reference to a court unless within 90 days from the first publication of
13       this notice such reference is requested by a party in interest or an unpaid creditor and good
14       cause is shown to support such reference.
15           Dated this ______ day of ________, ________.
16                                              _________________________
17                                              Clerk of the District Court
18                                              of ________ County, Kansas''
19           (d) The clerk shall charge to the executor or administrator, and re-
20       ceive, the reasonable cost of publication of the notice.
21           (e) The executor or administrator, within a reasonable time after the
22       date of recordation of the appraisement in such case, shall make a report
23       to the court trustee of the personal representative's receipts, disburse-
24       ments and distribution, and shall make affidavit that all claims against the
25       estate, for expenses of administration, taxes and debts of the decedent,
26       have been paid in full. The clerk shall collect a fee of $10 for recording
27       such report and affidavit, and for publication of the notice hereafter pro-
28       vided, the fee to be in lieu of any other fee provided by law for recording
29       a report of settlement of the accounts of a decedent's executor or admin-
30       istrator. At least once a month the clerk shall cause to be published once
31       a week for two consecutive weeks in a newspaper of the county authorized
32       by law to publish legal notices, with regard to reports received in the prior
33       month, a notice substantially as follows:
34      
NOTICE OF FILING OF ESTATE ACCOUNTS
35           ``I have before me the account of the executor(s) or administrator(s) of the estates of the
36       following deceased persons:
37       ___________________________________________________________________________
38       ___________________________________________________________________________
39       ___________________________________________________________________________
40            Any person having a claim against the estate of any such deceased person, or who has
41       any beneficial interest therein, may appear before the court trustee or the court at any time
42       within 30 days after first publication of this notice, and request reference of the estate to
43       the court or object to confirmation of the accounting. In the absence of such request or

HB 2964

3

  1       objection, the accounting may be approved by the court.
  2                                              _________________________
  3                                              Clerk of the District Court
  4                                              of ________ County, Kansas''
  5           (f) If no such request or objection is made to the court trustee or the
  6       court, the court may confirm the report of the executor or administrator,
  7       and thereupon the executor's or administrator's surety shall be dis-
  8       charged. If such objection or request is made, the court may confirm the
  9       accounting and record the same, or may refer the estate to the court
10       trustee for further review. The executor or administrator has 20 days after
11       the date of the filing of a claim or claims against the estate of the decedent
12       to approve or reject the claim before the estate is referred to the court
13       and if all claims are approved as filed, then no reference may be made.
14           (g) If upon the return and recordation of the appraisement, it appears
15       to the court trustee that there is only one beneficiary of the estate and
16       that the beneficiary is competent at law, there shall be no further admin-
17       istration upon the estate, and no reference to the court, unless, for due
18       cause, the court orders further administration. The executor or admin-
19       istrator has 20 days after the date of the filing of a claim or claims against
20       the estate of the decedent to approve or reject one claim before the estate
21       is referred to the court and if all claims are approved as filed, then no
22       reference may be made. The bond of the executor or administrator and
23       such executor's or administrator's surety shall be discharged one year after
24       the date of qualification of the executor or administrator if no claim has
25       been filed with the court trustee and no suit has been instituted against
26       the executor or administrator. The clerk shall publish a notice once a
27       week for two consecutive weeks in a newspaper of the county authorized
28       by law to publish legal notices, substantially as follows:
29      
NOTICE OF UNADMINISTERED ESTATE
30           ``Notice is hereby given that, there being only one beneficiary of the deceased, there will
31       be no administration of the estate unless within 90 days demand for administration be made
32       by a party in interest or an unpaid creditor.
33           Dated this ______ day of ________, ________.
34                                              _________________________
35                                              Clerk of the District Court
36                                              of ________ County, Kansas''
37           (h) The clerk shall charge to the executor or administrator, and re-
38       ceive, the reasonable cost of publication of the notice.
39           (i) If no person demands administration and no creditor appears in
40       response to the notice hereinabove provided, the court trustee shall enter
41       an order declaring the estate closed, without final settlement or waiver
42       thereof and alienation of the decedent's real estate more than six months
43       after the date of the notice to a bona fide purchaser for value shall be

HB 2964

4

  1       free of any lien for taxes or debts of the decedent.
  2           New Sec. 3. Each month the court trustee shall publish a notice des-
  3       ignating a convenient time and place when and where claims against the
  4       estate or estates referred to the court trustee during the previous calendar
  5       month may be presented, examined and allowed. The time so designated
  6       by the court trustee shall not be less than two months nor more than
  7       three months from the date of the first publication of the notice herein-
  8       after set forth. The notice shall be to the following effect:
  9           To the creditors and beneficiaries of the estate(s) of _________________________________
10       ___________________________________________________________________________
11      
(Naming the decedent or decedents, as the case may be)
12           All persons having claims against the estate(s) of ____________________________________
13       ___________________________________________________________________________
14      
(Naming the decedent or decedents, as the case may be)
15       deceased, whether due, or not, are notified to exhibit same, with the voucher thereof, legally
16       verified, to the undersigned, at (designating the place) on or before the ____________________
17       day of ________, ________; otherwise they may by law be excluded from all
18       benefit of such estate(s). All beneficiaries of such estate(s) may appear on or before such
19       day to examine such claims and otherwise protect their interests.
20           Given under my hand this ______ day of ________, ________.
21                                                    ____________________
22                                                    Court trustee
23                                                     County of ____________________
24           Such notice shall be published in a newspaper of the county authorized by law to publish
25       legal notices.
26           New Sec. 4. In the court trustee's report of settlement of the ac-
27       counts of the executor or administrator, the court trustee shall certify that
28       the notice required by section 3, and amendments thereto was published
29       and shall state the name of the newspaper in which notice was published
30       and the dates of publishing.
31           New Sec. 5. When the court trustee has fixed the time for presen-
32       tation of claims, the executor or administrator shall file with such court
33       trustee a list of the names and post-office addresses of all known creditors
34       of the estate and of all distributees and legatees, to each of whom the
35       court trustee shall cause a copy of such notice to be forwarded by United
36       States mail, addressed according to such list. Failure to mail, or to receive,
37       such notice shall not relieve and any creditor, distributee or legatee of
38       the duty to present and prove the claim as required by such notice.
39           New Sec. 6. Every claim against the estate of a decedent shall be
40       itemized, accompanied by proper vouchers, and shall state the character
41       of the claim, whether open account, note, bond, bill, writing obligatory,
42       judgment, decree or other evidence of debt, and the amount thereof, and
43       from what date and on what items interest runs and at what percent per

HB 2964

5

  1       annum, and stating further that the claim is just and true, and that the
  2       creditor, or any prior owner of the claim, if such there was, has not re-
  3       ceived any part of the money stated to be due, or any security or satis-
  4       faction for the same, except what is credited. The voucher for a judgment
  5       or decree shall be an abstract thereof; for a specialty, bond, note, bill of
  6       exchange, writing obligatory or other instrument, shall be the instrument
  7       itself, or a true copy thereof, or proof of the same in case the instrument
  8       be lost; and for an open account, an itemized copy of the account. This
  9       section shall not apply to taxes.
10           New Sec. 7. Every claim so itemized, so accompanied by proper
11       vouchers and so verified, shall be taken to be proved, and shall be allowed,
12       unless before the court trustee makes up the court trustee's report of
13       claims the executor, administrator, distributee, legatee, or, in the case of
14       estates that appear to be insolvent, a creditor, shall file before the court
15       trustee a counter affidavit, denying the claim in whole or in part. When
16       such counter affidavit is so filed the court trustee shall fix a time and place
17       for hearing evidence for and against such claim and give reasonable notice
18       of such time and place to the claimant, the party objecting and the ex-
19       ecutor or administrator. If the court trustee, having held such hearing,
20       does not allow any such claim, the claimant shall pay the expense of having
21       the testimony adduced at such hearing recorded or transcribed or both.
22       The court trustee, in the exercise of the court trustee's sound discretion,
23       may require that the claimant post a bond or other security sufficient to
24       pay the estimated cost of having such testimony recorded and transcribed
25       as a condition precedent to holding such hearing. If such claim, having
26       been disallowed by the court trustee, subsequently shall be allowed as a
27       claim against the estate, the claimant shall be entitled to recover from
28       the estate the expenses so paid. Claims for funeral expenses shall be made
29       and determined in the same manner as any other claims.
30           New Sec. 8. Claims against any decedent's estate may be filed with
31       or presented to the court trustee to whom the estate has been referred,
32       at any time following the qualification of the executor or administrator,
33       notwithstanding the notice to creditors shall not have been published
34       previously to such filing or presentation.
35           New Sec. 9. Whenever at the death of any person there shall be a
36       contingent or unliquidated claim against the decedent's estate, or an out-
37       standing bond, recognizance or undertaking upon which the deceased
38       shall have been principal, surety or indemnitor, and on which at the time
39       of the decedent's death the liability is still contingent or unliquidated, the
40       claimant or the surety shall have the right to file with the court trustee,
41       executor or administrator, as the case may be, at the time provided for
42       the notice, proof of the claim in the same manner as other claims, stating
43       in the claimant's affidavit the facts upon which such contingent or unli-

HB 2964

6

  1       quidated liability is based and the probable amount thereof. When so
  2       filed there shall be no distribution of the assets of the estate, except as
  3       otherwise provided in this act, without the reservation of sufficient mon-
  4       eys to pay, when the amount is finally determined, such contingent or
  5       unliquidated claim, or a proportion thereof equal to what is paid to other
  6       creditors of the same class. If such liability becomes fixed before a court
  7       trustee completes the court trustee's report, then evidence of the same
  8       may be filed with the court trustee in lieu of the contingent claim herein
  9       provided for, and such claim as fixed shall be a debt of the estate.
10           New Sec. 10. The court trustee may adjourn from time to time the
11       hearing for the presentation of claims as well as the hearings for proof of
12       disputed claims until all the presented claims and the objections to any
13       claims be fully heard and passed on.
14           New Sec. 11. When a creditor against whom the deceased had any
15       claim or claims shall present a claim the executor or administrator may
16       exhibit any offset, if the offset has survived, that the deceased may have
17       to such claim, and the court trustee shall ascertain and allow the balance
18       against or in favor of the estate.
19           New Sec. 12. Any heir or devisee entitled to have any lien on the
20       real estate that descended or was devised to such heir or devisee dis-
21       charged out of the personal estate, or any legatee entitled to have a lien
22       on specific personalty discharged out of the other personalty, may, if the
23       creditor holding any such lien fails to present and prove the creditor's
24       claim, present and prove such claim, and have the same allowed or pro-
25       vided for, within the same time, to the same extent, and by the same
26       means as such creditor.
27           New Sec. 13. No claim barred by any statute of limitations shall be
28       allowed by a court trustee against the estate of a decedent.
29           New Sec. 14. The filing with or presentation to the court trustee or
30       to the county clerk of any claim against the estate of a decedent, so far
31       as the running of any statute of limitations is involved, shall have the same
32       effect as the institution of a civil action or suit on such claim.
33           New Sec. 15. The court trustee may authorize, and the executor or
34       administrator may make, payment of funeral expenses, claims of physi-
35       cians and nurses for services rendered during the last illness of the de-
36       cedent, and accounts of druggists and hospitals for articles furnished and
37       services rendered during the same period, to the extent that any of the
38       same are preferred; also of debts due the United States, debts due the
39       state of Kansas, and taxes, in advance of the determination of other claims.
40           New Sec. 16. Nothing in this act shall be construed to prevent any
41       executor or administrator, when the executor or administrator thinks it
42       necessary, from commencing any action or suit against any person, or
43       from prosecuting to final judgment or decree any action or suit com-

HB 2964

7

  1       menced by the deceased in the deceased's lifetime, if the cause of such
  2       action or suit survives, for the recovery of any debt or claim, or from
  3       having execution on any judgment or decree. The defendant in any such
  4       action or suit, notwithstanding the defendant may have already filed the
  5       defendant's claim before a court trustee, shall set off any claim the de-
  6       fendant may have against the deceased, if proper to be allowed as a setoff;
  7       and if final judgment or decree shall be rendered in favor of the defend-
  8       ant, the same shall be certified by the clerk rendering it to the court
  9       trustee before whom the estate of the deceased is pending, and the
10       amount thereof shall be allowed in the same manner as other claims
11       against such estate filed and proved before the court trustee.
12           New Sec. 17. After the completion of the hearings for the presen-
13       tation of claims and for reception of proof for and against disputed claims,
14       but not later than five months from the qualifications of the executor or
15       administrator, the court trustee may, and upon motion of any interested
16       person shall, prepare a report of claims against the estate, showing in such
17       report all the claims presented, or exhibited in offset, or certified to the
18       court trustee by any court, and stating as to each claim how much was
19       allowed and how much disallowed, together with the final balance,
20       whether in favor of the creditor or the estate. The court trustee shall also
21       show in such report what assets are in the hands of the executor or ad-
22       ministrator, and shall designate how the same shall be applied to the
23       payment of debts and claims, also in what order of priority the claims
24       shall be paid and also what sum shall be reserved to pay contingent or
25       unliquidated claims and claims not matured, or a proportion of any such
26       claim equal to what is allowed to other creditors of the same class, when
27       payment of such claims shall become proper. Such report shall also show
28       what persons are entitled to share in the estate as legatees, and as such
29       in what property or amounts; or as distributees, and as such in what
30       proportions.
31           New Sec. 18. (a) For the purposes of this section the term ``persons
32       interested in the estate'' shall include all persons, firms and corporations
33       who may be entitled to receive or who have received any property or
34       interest which is required to be included in the gross estate of a decedent,
35       or any benefit whatsoever with respect to any such property or interest,
36       whether under a will or intestacy, or by reason of any transfer, trust,
37       estate, interest, right, power or relinquishment of power, taxable under
38       any estate tax law of the United States or this state heretofore or hereafter
39       enacted.
40           (b) Whenever it appears upon any settlement of accounts or in any
41       other appropriate action or proceeding, that an executor or administrator
42       has paid an estate tax levied or assessed under the provisions of any estate
43       tax law of the United States or inheritance tax law of this state, upon or

HB 2964

8

  1       with respect to any property required to be included in the gross estate
  2       of a decedent under the provisions of any such law, the amount of the
  3       tax so paid shall be prorated among the persons interested in the estate
  4       to whom such property is or may be transferred or to whom any benefit
  5       accrues. Such apportionment shall be made in the proportion that the
  6       value of the property, interest or benefit of each such person bears to the
  7       total value of the property, interest and benefits received by all such
  8       persons interested in the estate, except that in making such proration
  9       each such person shall have the benefit of any exemptions, deductions
10       and exclusions allowed by such law in respect of such person or the prop-
11       erty passing to such person; and except that notwithstanding the preced-
12       ing provisions of this sentence in cases where a trust is created, or other
13       provision made whereby any person is given an interest in income, or an
14       estate for years, or for life, or other temporary interest in any property
15       or fund, the tax on both such temporary interest and on the remainder
16       thereafter shall be charged against and paid out of the corpus of such
17       property or fund without apportionment between remainders and tem-
18       porary estates.
19           (c) In all cases in which any property required to be included in the
20       gross estate does not come into the possession of the executor or admin-
21       istrator as such, the executor or administrator shall be entitled, and it shall
22       be the executor's or administrator's duty to recover from whomever is in
23       possession, or from the persons interested in the estate, the proportionate
24       amount of such tax payable by the persons interested in the estate with
25       which such persons interested in the estate are chargeable under the
26       provisions of this section.
27           (d) No executor or administrator shall be required to transfer, pay
28       over or distribute any fund or property with respect to which a federal
29       estate tax or Kansas inheritance tax is imposed until the amount of such
30       tax or taxes due from the devisee, legatee, distributee or other person to
31       whom such property is transferred is paid to such executor or adminis-
32       trator, or, if the apportionment of tax has not been determined, adequate
33       security is furnished by the transferee for such payment.
34           (e) It is expressly provided that the foregoing provisions of this section
35       are subject to the following qualification, that none of such provisions
36       shall in any way impair the right or power of any person by will or by
37       written instrument executed inter vivos to make direction for the payment
38       of such estate taxes, and to designate the fund or funds or property out
39       of which such payment shall be made, and in every such case the provi-
40       sions of the will or of such written instrument executed inter vivos shall
41       be given effect to the same extent as if this section had not been enacted.
42           (f) The provisions of this section shall be applicable to all estates of
43       decedents dying after the enactment of this section.

HB 2964

9

  1           New Sec. 19. The court trustee in the court trustee's report on claims
  2       shall direct the executor or administrator to withhold from distribution
  3       to beneficiaries sufficient assets to take care of such contingent and un-
  4       liquidated claims and claims not matured as shall be presented to and
  5       proved before the court trustee, or a proportion thereof equal to what is
  6       paid to other creditors of the same class, and such assets shall be so
  7       withheld until such contingent liability becomes fixed, or such unliqui-
  8       dated liability becomes liquidated, or until such claims not matured ma-
  9       ture, as the case may be, at which time such assets shall be disbursed or
10       distributed as the court trustee in the court trustee's report may have
11       designated and the circumstances may require. In any case where there
12       are sufficient assets to pay all liquidated claims against any estate, any
13       legatee or distributee of the estate shall be entitled to be paid such leg-
14       atee's or distributee's share of the full surplus of the estate, after payment
15       of, or provision for, all liquidated claims, both those matured and those
16       not matured, has been made, upon such legatee's or distributee's giving
17       to the court trustee a bond, executed by the legatee or distributee or
18       some other person, with sufficient security, to be approved by the court
19       conditioned to refund a due proportion of any unliquidated or contingent
20       debts or demands which may afterwards appear against the decedent or
21       become liquidated or have their liability fixed, and of the costs attending
22       their recovery. Such bond shall be filed in the clerk's office where probate
23       of the will or administration of the estate was had, and recorded by such
24       clerk in the record of bonds. After the giving of any such bond or bonds,
25       creditors holding unliquidated or contingent debts and demands, as to
26       the estate distributed by virtue of the giving of such bond or bonds, shall
27       look only to such bond or bonds for the payment of such debts and de-
28       mands.
29           New Sec. 20. After preparing a report of claims as hereinafter pro-
30       vided, the court trustee shall give notice thereof, either verbally or in
31       writing, delivered personally or by mail, to all parties interested or such
32       parties' attorneys, and hold the report and the evidence taken in connec-
33       tion therewith in the court trustee's office for 10 days for the examination
34       of interested parties. Any party may inspect such report and evidence and
35       file exceptions thereto before the court trustee. The court trustee in all
36       cases, shall return with the court trustee's report all the evidence taken
37       in connection with any claim listed in such report, and the exceptions, if
38       any, taken to the report, and shall submit such remarks upon the excep-
39       tions as the court trustee deems pertinent. After the expiration of such
40       10 days the court trustee shall return the report, evidence, exceptions and
41       remarks to the court, and until the report is acted upon by the court it
42       shall be subject to further exceptions by the same or other parties inter-
43       ested.

HB 2964

10

  1           New Sec. 21. (a) The hearing on the report of claims shall be held
  2       at least 10 days after the return by a court trustee of the report. If there
  3       be no exceptions to such report it shall be confirmed by the court. If good
  4       cause is shown for the introduction of further proof regarding any matter
  5       contained in such report, the report shall be referred back to the court
  6       trustee for the making of further proof and the making of a supplemental
  7       report. An appeal shall proceed as set out under the Kansas probate code.
  8           (b) The report of claims, and the supplemental report of claims, if
  9       there is one, when confirmed by the court shall be recorded by the clerk
10       of the district court.
11           New Sec. 22. (a) If the applicable assets of the estate are insufficient
12       to pay all claims against the estate in full, the executor or administrator
13       shall make payment in the following order:
14           (1) Costs and expenses of administration;
15           (2) reasonable funeral expenses;
16           (3) debts and taxes with preference under federal law;
17           (4) unpaid child support which is due and owing at the time of the
18       decedent's death;
19           (5) debts and taxes with preference under other laws of the state of
20       Kansas;
21           (6) reasonable and necessary medical and hospital expenses of the
22       last illness of the decedent, including compensation for persons attending
23       the decedent during the last illness; and
24           (7) all other claims.
25           (b) If the applicable assets of the estate are insufficient to pay all
26       claims within a class, those claims within that class shall be paid on a pro-
27       rata basis. No preference shall be given in the payment of any claim over
28       any other claim of the same class, and a claim due and payable shall not
29       be entitled to a preference over claims not due.
30           (c) Notwithstanding the provisions of subsection (a), if the payment
31       of all funeral expenses of the decedent is provided for by an irrevocable
32       pre-need funeral contract or trust, neither the decedent's estate nor the
33       decedent's surviving spouse shall have any obligation for the payment of
34       such funeral expenses.
35           New Sec. 23. No payment shall be made to creditors of any one class
36       until all those of the preceding class or classes shall be fully paid. When
37       the assets are not sufficient to pay all the creditors of any one class, the
38       creditors of such class shall be paid ratably. However, an executor or
39       administrator who, after six months from qualification, pays a debt of the
40       decedent, shall not thereby be personally liable for any debt or demand
41       against the decedent of equal or superior dignity, whether it be of record
42       or not, unless before such payment the executor or administrator has
43       notice of such debt or demand by action, suit or presentation thereof to

HB 2964

11

  1       the court trustee within the time allowed by law.
  2           New Sec. 24. If any court trustee after six months from the appoint-
  3       ment of the executor or administrator of the estate, and after the report
  4       of claims, if any, has been made by the court trustee and been confirmed
  5       by the court, and after withholding such funds as the court trustee directs
  6       to meet any contingent and unmatured claims and claims in action or suit,
  7       shall pay any legacy given by the will, or distribute any of the estate of
  8       the decedent in accordance with the court trustee's report as confirmed,
  9       if any, or according to law in case of intestacy or according to the will, if
10       any, such executor or administrator, on account of what is so paid or
11       distributed, shall not be personally liable for any debt or demand against
12       the decedent, whether it be of record or not, unless, within the time fixed
13       for the presentation of claims or for suing thereon, such claim was duly
14       presented or action or suit thereon commenced and process served on
15       such executor or administrator.
16           New Sec. 25. After the report of a court trustee, if any, on the claims
17       against the estate of any decedent has been confirmed, or after six months
18       from the time of the appointment of the executor or administrator shall
19       have elapsed, the executor or administrator may pay the claims allowed
20       by the court trustee against the decedent's estate or certified to the court
21       trustee by courts wherein judgments or decrees against the estate have
22       been rendered, according to the order of payment set forth in the court
23       trustee's report, or as directed by the court trustee, and pay legacies and
24       distribute the surplus among the parties entitled thereto in the amounts
25       and proportions determined by the court trustee withholding such sum
26       as such report as confirmed states to be necessary for the payment of any
27       contingent, unliquidated or disputed claims, or claims not matured, or
28       the proportions of any such equal to what is allowed to other creditors of
29       the same class, and upon the determination from time to time of any such
30       claims further payments and distributions may be made as the circum-
31       stances require. If the executor or administrator shall fail or refuse to pay
32       claims and make distribution within one month following the time when
33       the executor or administrator may legally do so, and no appeal has been
34       taken from the order of confirmation of the report on claims, any party
35       interested may institute a civil action against such executor or adminis-
36       trator to compel payment and distribution as provided by section 23, and
37       amendments thereto.
38           New Sec. 26. (a) Notwithstanding any other provision of the law, if
39       an estate is otherwise ready for final settlement and the executor or ad-
40       ministrator holds any sum or sums of money necessary for the payment
41       or distribution of any contingent, unliquidated, unmatured or disputed
42       bequest or claim, which cannot be paid or distributed because the where-
43       abouts of the claimant or distributee are unknown, or cannot be paid or

HB 2964

12

  1       distributed for any other reason, the executor or administrator, with the
  2       consent of the court trustee to whom the estate has been referred, may
  3       pay such sum or sums to the general receiver of the court in the county
  4       in which the estate is being administered. Any such payment, together
  5       with a receipt therefor, shall be reflected and shown in the court trustee's
  6       final report. After the report is confirmed by the court, such executor or
  7       administrator shall not be personally liable for any such request or claim.
  8           (b) Any person entitled to any funds paid to a general receiver of a
  9       court pursuant to the provisions of this section may petition the court in
10       a summary proceeding for an order directing the distribution of such
11       funds. Any person believed to have any claim to or interest in such funds
12       shall be made a party defendant to such petition and shall be given such
13       notice of any hearing thereon as the court may direct. The court shall
14       enter an order directing the distribution of such finds to the person or
15       persons entitled thereto. The costs of the proceedings shall be paid from
16       the funds.
17           New Sec. 27. An executor or administrator shall not be compelled
18       to pay any legacy given by the will, or make distribution of the estate of
19       the decedent, until after six months from the date of the appointment of
20       the executor or administrator of such decedent, and not then unless the
21       report of claims against the estate made by the court trustee has been
22       confirmed, and no appeal has been taken from the court's order of con-
23       firmation.
24           New Sec. 28. Every person including the secretary of revenue, hav-
25       ing a claim against deceased person, whether due or not, after notice to
26       creditors has been published as prescribed in this act, who has not pre-
27       sented a claim on or before the time fixed in such notice, or before that
28       time has not instituted a civil action or suit thereon, notwithstanding the
29       same be not barred by some other statute of limitations that is applicable
30       thereto, shall be barred from recovering such claim of or from the ex-
31       ecutor or administrator, or from thereafter setting off the same against
32       the executor or administrator in any action or suit whatever. If a surplus
33       remains after providing for all claims presented in due time, or on which
34       action or suit shall have been commenced in due time, and such surplus
35       shall not have been distributed by the executor or administrator to the
36       beneficiaries of the estate, and the claimant prove that the claimant had
37       no actual notice of the publication to creditors nor knowledge of any
38       proceedings before the court trustee, such creditor may prove such cred-
39       itor's claim either before the court trustee or by action or suit and have
40       the same allowed out of such surplus. In order that such late claims if
41       proved may be provided for, the court trustee shall reopen the report if
42       the same has not been returned to the court, or if returned, shall make
43       and return a supplemental report.

HB 2964

13

  1           New Sec. 29. Every creditor who has not presented the creditor's
  2       claim to the court trustee before distribution of the surplus by the exec-
  3       utor or administrator, or before that time has not instituted a civil action
  4       or suit thereon against the executor or administrator, if not barred by the
  5       statute of limitation, may bring a civil action against the distributees and
  6       legatees, jointly or severally, at any time within two years after such dis-
  7       tribution. No distributee or legatee shall be required to pay to creditors
  8       suing by virtue of this section a greater sum than the value of what was
  9       received by such legatee or distributee out the decedent's estate, nor shall
10       any distributee or legatee be required to pay to any one creditor a greater
11       proportion of such creditor's debt than the value of what was received by
12       such distributee or legatee bears to the total estate distributed. A creditor
13       suing by virtue of this section shall not recover against such distributees
14       and legatees the cost of such creditor's civil action.
15           New Sec. 30. When the right to bring action or suit against distri-
16       butees and legatees on any claim against the decedents shall become
17       barred, the right to enforce such claim against real estate shall also be-
18       come barred to the extent that such claim could have been collected out
19       of the personal assets of the decedent. The provisions of this section shall
20       not apply to liens upon real property acquired or created in the lifetime
21       of the decedent, made or created to secure claims due and payable in
22       future installments or at a future date.
23           Sec. 31. K.S.A. 59-3202 is hereby amended to read as follows: 59-
24       3202. On the hearing of a petition for the appointment of an administrator
25       or for the probate of a will where administration is sought under the
26       Kansas simplified estates act or under the court trustee administered es-
27       tate, the court shall determine whether the estate shall be administered
28       as a simplified estate, a court trustee administered estate or as a supervised
29       estate. In making such determination, the court may consider the size of
30       the estate; the degree of kinship of the heirs, devisees and persons seeking
31       appointment; the solvency of the estate; the nature of the estate; the
32       wishes of the heirs and devisees; the probable cost of estate administration
33       and settlement; and any other pertinent matters.
34           Sec. 32. K.S.A. 1997 Supp. 23-495 is hereby amended to read as
35       follows: 23-495. The court trustee shall have the responsibility for ad-
36       ministering estates pursuant to sections 1 through 30 and amendments
37       thereto, and for collection of support or restitution from the obligor upon
38       the written request of the obligee or upon the order of the court.
39           Sec. 33. K.S.A. 1997 Supp. 23-496 is hereby amended to read as
40       follows: 23-496. (a) The court trustee shall be authorized and empowered
41       to pursue all civil remedies which would be available to the obligee or
42       obligor in establishing and enforcing payment of support or restitution.
43           (b) The court trustee may also file motions for an increase or a de-

HB 2964

14

  1       crease of the amount of support on behalf of any child. Any such motion
  2       to modify the amount of support shall not be heard until notice has been
  3       given to the obligee, the obligor and their attorneys of record, if any.
  4           (c) The court trustee shall have the following additional powers and
  5       duties upon approval of the administrative judge:
  6           (1) To issue summonses, administrative subpoenas and subpoenas
  7       duces tecum to obligors, obligees and other witnesses who possess knowl-
  8       edge or books and records relating to enforcement of support or resti-
  9       tution to appear in the office of the trustee or before the district court
10       for examination;
11           (2) to administer oaths and take sworn testimony on the record or by
12       affidavit;
13           (3) to appoint special process servers as required to carry out the
14       court trustee's responsibilities under this section;
15           (4) to enter into stipulations, acknowledgments, agreements and jour-
16       nal entries, subject to approval of the court; and
17           (5) to enter into contracts pursuant to K.S.A. 75-719, and amend-
18       ments thereto, with the attorney general for the collection of debts owed
19       to courts or restitution owed to obligees.
20           (d) The court trustee shall administer the court trustee administered
21       estates.
22           Sec. 34. K.S.A. 59-3202 and K.S.A. 1997 Supp. 23-495 and 23-496
23       are hereby repealed.
24           Sec. 35. This act shall take effect and be in force from and after
25       January 1, 1999, and its publication in the statute book.
26      
27