Chapter 9. Compromise Of Claims And Actions; Extension, Renewal, Or Modification Of Obligations of California Probate Code >> Division 7. >> Part 5. >> Chapter 9.

(a) Unless this chapter or some other applicable statute requires court authorization or approval, if it is to the advantage of the estate, the personal representative may do any of the following without court authorization, instruction, approval, or confirmation:
  (1) Compromise or settle a claim, action, or proceeding by or for the benefit of, or against, the decedent, the personal representative, or the estate, including the giving of a covenant not to sue.
  (2) Extend, renew, or in any manner modify the terms of an obligation owing to or in favor of the decedent or the estate.
  (3) Release, in whole or in part, any claim belonging to the estate to the extent that the claim is uncollectible.
  (b) Nothing in this section precludes the personal representative from seeking court authorization pursuant to the provisions of this chapter.
  (c) Upon petition of an interested person or upon the court's own motion, the court may limit the authority of the personal representative under subdivision (a). Notice of the hearing on the petition shall be given as provided in Section 1220.

Unless the time for filing creditor claims has expired, authorization by order of court is required for a compromise or settlement of a claim, action, or proceeding by or for the benefit of, or against, the decedent, the personal representative, or the estate.

(a) Except as provided in subdivision (b), authorization by order of court is required for a compromise, settlement, extension, renewal, or modification which affects any of the following:
  (1) Title to real property.
  (2) An interest in real property or a lien or encumbrance on real property.
  (3) An option to purchase real property or an interest in real property.
  (b) If it is to the advantage of the estate, the personal representative without prior court authorization may extend, renew, or modify a lease of real property in either of the following cases:
  (1) Where under the lease as extended, renewed, or modified the rental does not exceed five thousand dollars ($5,000) a month and the term does not exceed one year.
  (2) Where the lease is from month to month, regardless of the amount of the rental.
  (c) For the purposes of subdivision (b), if the lease as extended, renewed, or modified gives the lessee the right to extend the term of the lease, the length of the term shall be considered as though the right to extend had been exercised.

Authorization by order of court is required for a compromise or settlement of a matter when the transaction requires the transfer or encumbrance of property of the estate, or the creation of an unsecured liability of the estate, or both, in an amount or value in excess of twenty-five thousand dollars ($25,000).

Authorization by order of court is required for any of the following:
  (a) A compromise or settlement of a claim by the estate against the personal representative or the personal representative's attorney, whether or not the claim arises out of the administration of the estate.
  (b) An extension, renewal, or modification of the terms of a debt or similar obligation of the personal representative, or the personal representative's attorney, owing to, or in favor of, the estate.

Authorization by order of court is required for the compromise or settlement of a claim or right of action given to the personal representative by any law for the wrongful death or injury of the decedent, including any action brought by the personal representative in attempting enforcement of the claim or right of action. Authorization to compromise or settle the claim or right of action includes authorization to give a covenant not to sue.

The court authorization required by this chapter shall be obtained from the court in which the estate is being administered.

(a) A petition for an order authorizing a compromise, settlement, extension, renewal, or modification under this chapter may be filed by any of the following:
  (1) The personal representative.
  (2) Any interested person who has obtained the written approval of the personal representative to file the petition.
  (b) The petition shall show the terms of the compromise, settlement, extension, renewal, or modification and its advantage to the estate.
  (c) Notice of the hearing on the petition shall be given as provided in Section 1220.

(a) If an order made under Section 9837 authorizes a compromise or settlement that requires the transfer of real property of the estate, the personal representative shall execute a conveyance of the real property to the person entitled thereto under the compromise or settlement. The conveyance shall refer to the order authorizing the compromise or settlement and directing that the conveyance be executed. A certified copy of the order shall be recorded in the office of the county recorder in each county in which any portion of the real property is located.
  (b) A conveyance made in compliance with the court order authorizing the compromise or settlement and directing the conveyance to be executed vests in the person to whom the property is transferred both of the following:
  (1) All the right, title, and interest which the decedent had in the property at the time of the decedent's death.
  (2) Any other or additional right, title, or interest in the property acquired by the estate of the decedent, by operation of law or otherwise, prior to the transfer.

If the personal representative pays a claim for less than its full amount, the personal representative's accounts may be credited only for the amount actually paid.