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A conservator may pay, or secure by encumbering property included in the conservatorship estate, a claim against the conservatorship estate or the ward arising before or during the conservatorship, on presentation and allowance in accordance with the priorities under subsection (5) or (6). A claimant may present a claim by filing the claim with the court, in a form acceptable to the court, and sending or delivering a copy of the claim to the conservator.
A presented claim is allowed if it is not disallowed in whole or in part by the conservator in a record sent or delivered to the claimant not later than ninety (90) days after its presentation. Before payment, the conservator may change an allowance of the claim to a disallowance in whole or in part, but not after allowance under a court order or order directing payment of the claim. Presentation of a claim tolls the running of a statute of limitations that has not expired relating to the claim until thirty (30) days after disallowance of the claim.
A claimant whose claim has not been paid may petition the court to determine the claim at any time before it is barred by a statute of limitations, and the court may order its allowance, payment, or security by encumbering property included in the conservatorship estate. If a proceeding is pending against the ward at the time of appointment of the conservator or is initiated after the appointment, the moving party must give the conservator notice of the proceeding if it could result in creating a claim against the conservatorship estate.
If a conservatorship estate is likely to be exhausted before all existing claims are paid, the provisions of the law on proceedings to insolvency and distribution of assets of insolvent estates shall, as far as applicable and not otherwise provided, be observed and enforced.
When the claims are established and the amount of assets ascertained, the court shall adjudge the pro rata share of each claimant, deducting first the preference claims in the following order:
Costs and expenses of administration;
A claim of the federal or state government having priority under law other than this article;
A claim incurred by the conservator for support, care, education, health, or welfare previously provided to the ward or an individual who is in fact dependent on the ward;
A claim arising before the conservatorship; and
All other claims.
Preference may not be given in the payment of a claim under subsection (5) over another claim of the same class. A claim due and payable may not be preferred over a claim not due unless:
Doing so would leave the conservatorship estate without sufficient funds to pay the basic living and health-care expenses of the ward; and
The court authorizes the preference under Section 93-20-414(1)(h).
If assets of a conservatorship estate are adequate to meet all existing claims, the court, acting in the best interest of the ward, may order the conservator to grant a security interest in the conservatorship estate for payment of a claim at a future date.