The Court establishes a balancing test to determine if an estate should be held open for a contingent claim.

In re the Supervised Estate of: Brian Scott Short, Deceased,  __ N.W.2d __ (Minn.App. 2019); filed August 26, 2019 A18-1682. “When determining whether to distribute assets or hold open an estate with a contingent claim, courts must apply a balancing test to weigh the interests of efficient administration of an estate against protection of the contingent claim, considering the following factors: (1) the nature of the claim being asserted before another tribunal; (2) the hardship on the estate of the deferred distribution of principal or income; and (3) the adverse effect of refusing any asset withholding and thereby potentially impairing satisfaction of a meritorious claim.” See Powers Blvd. Assocs. Ltd. V. Estate of Reel, 839 P.2d 516, 518 (Colo.App. 1992) citing In re Mellon, 314 A.2d 500 (Pa. 1974). In this case the federal suit that was the basis for the contingent claim was dismissed but appealed. The probate court decided to hold the probate open subject to the outcome of the federal case. The personal representative objected to and appealed the probate court’s decision to make the estate supervised (thereby barring distributions from the estate, 524.3-504/505) and for failing to uphold denial of the claim or distribution of assets. The court used non-Minnesota law interpreting the similar UPC provisions to the MN UPC. See In re Estate of Kotowski, 704 N.W.2d 522 (Minn. App. 2005, Johnson v. Murray, 648 N.W.2d 664 (Minn. 2002), review denied (Minn. Dec. 21, 2005).

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