Revision: Dec. 30, 2009, midnight
SB 353-FN – AS INTRODUCED
2010 SESSION
09/01
SENATE BILL 353-FN
This changes the procedure for administration of insolvent estates.
This bill was requested by the supreme court.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
10-2857
09/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Ten
AN ACT relative to the procedure for administration of insolvent estates.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Reference Change. Amend RSA 21-P:54, III to read as follows:
III. The costs of embalming, cremation, burial, or other disposal of a corpse pursuant to this section shall be a cost to the estate of the decedent and shall be a necessary expense of the funeral and burial of the decedent pursuant to RSA 554:19, [II] I(b).
2 Reference Change. Amend the introductory paragraph of RSA 126-A:37 to read as follows:
126-A:37 Estates Chargeable for Support. Except as limited in RSA 126-A:39, expenses incurred by anyone in the institutions named in RSA 126-A:34, or, at the direction of the commissioner in any public or private institution, or elsewhere, may be recovered in any action in the name of the state from the estate of the person, or the person’s spouse, or mother or father, whose estate is more than sufficient to pay priorities in [paragraphs I, II, III, IV, and V of] RSA 554:19. The spouse and the father and mother are declared jointly and severally liable for expenses, unless otherwise ordered by the court, except that recovery of expenses against a mother or father shall be limited:
3 Dealing with Assets; Priority of Charges. RSA 554:19 is repealed and reenacted to read as follows:
554:19 Priority of Charges.
I. The administrator of an estate shall make payment of the claims in the following order:
(a) Costs and expenses of administration of the estate.
(b) Reasonable and necessary funeral, burial, and cremation expenses.
(c) Debts and taxes with preference under federal law.
(d) Just debts of the deceased.
(e) Total amount paid for old age assistance or aid to the permanently and totally disabled and, under certain circumstances, charges pursuant to RSA 166:19.
(f) Legacies given by the will of the deceased or distribution to heirs according to law.
II. No preference shall be given in the payment of any claim over any other claim of the same class.
III. No creditor of a lower class shall receive any payment until all those of the preceding class shall have been fully paid.
4 New Section; Dealing with Assets; Insolvent Estate. Amend 554 by inserting after section 19-a the following new section:
554:19-b Insolvent Estate.
I. When it appears to an administrator of an estate that the known claims and expenses of administration exceed the value of the assets, the administrator may petition the court for initial determination that the estate is insolvent.
II. The petition shall show the value of the estate, names and addresses of all known creditors, the amount claimed by each creditor, whether the decedent had a revocable trust, and the value of the trust property available to satisfy creditors and claims pursuant to RSA 564-B:5-505.
III. The administrator shall provide notice of the petition to all persons beneficially interested in the estate as defined by RSA 550:12.
IV. The court may rule on the petition without a hearing. At the discretion of the court, the order granting the petition may allow for the waiver of filing an inventory or any accounts. Upon an order of the court granting the petition filed pursuant to paragraph I, all actions and suits against the deceased or the administrator shall be stayed:
(a) Unless the deceased was insured for the matter which is the subject of the action, and, in such case, recovery shall be limited to the coverage of the insurance policy or policies; or
(b) Unless the stay is lifted by the court in which the estate is pending, and in such case, if judgment is rendered for the plaintiff, the judgment shall be certified to the probate court, and the amount of the judgment shall be added to the list of claims.
V. No sooner than 6 months after the grant of administration, the administrator of an estate that has been determined to be insolvent shall petition the court for an order to distribute assets pursuant to RSA 554:19.
VI. The petition shall show the value of the estate, names and addresses of all known creditors, the amount claimed by each creditor, and the amount the administrator proposes that each creditor is entitled to receive from the estate, whether the decedent had a revocable trust, and the value of the trust property available to satisfy creditors and claims pursuant to RSA 564-B:5-505.
VII. The administrator shall provide notice of the petition to all persons beneficially interested in the estate as defined by RSA 550:12. The petition shall state that beneficially interested persons have 30 days to object to the petition. If no timely objection is received by the court, it may issue an order of distribution without a hearing.
VIII. Not sooner than 30 days after the order of distribution is issued by the court, the administrator shall distribute the decedent’s estate and file with the court an affidavit certifying that distribution was made in accordance with the court’s order. The administrator shall thereafter be wholly discharged, by decree of the judge, from all claims of the creditors against the estate, without other proceedings.
5 Repeal. The following are repealed:
I. RSA 556:8, relative to insolvent estates.
II. RSA 557, relative to insolvent estates.
III. RSA 558, relative to appeals from commissioners.
IV. RSA 567-A:12, relative to application to appeals from commissioners of insolvent estates.
6 Effective Date. This act shall take effect on January 1, 2011.
LBAO
10-2857
12/28/09
SB 353-FN - FISCAL NOTE
AN ACT relative to the procedure for administration of insolvent estates.
FISCAL IMPACT:
The Judicial Branch states this bill may decrease state general fund expenditures by an indeterminable amount in FY 2011 and each year thereafter. There is no fiscal impact on county and local expenditures or state, county and local revenue.
METHODOLOGY:
The Judicial Branch states this bill will repeal RSA 557, RSA 558, RSA 556:8, and RSA 567-A:12 which all deal with insolvent estates (i.e. estates where debts exceed assets) and amendments are made to RSA 554:19 and RSA 554:19-b to provide new procedures for the administration of insolvent estates. The changes will result in more streamlined procedures by which the probate courts process insolvent cases resulting in clerical and judicial time savings. The Branch is not able to provide a precise estimate of any cost savings associated with this bill.