Compromise of Claims
Unless a decedent's will provides otherwise, the personal representative has the authority to compromise claims by or against the estate. Where Court approval is necessary or desirable, the Court, on petition setting forth all the facts and circumstances, may enter a decree authorizing that the compromise or settlement be made. See PEF Code §3323.
Whenever it is desired to compromise or settle an action in which damages are sought to be recovered on behalf of the estate, the Court in which such action is pending and which has jurisdiction thereof may make an order approving such compromise or settlement. Such order may approve an agreement for the payment of counsel fees and other proper expenses incident to such action. The Court order approving such compromise shall not be subject to collateral attack in the Orphans' Court in the settlement of the estate. See PEF Code §3323(b).
The personal representative shall file a copy of the Court order approving such compromise in the Office of the Register or Clerk of the Orphans' Court having jurisdiction of the estate. When required to give bond, the personal representative shall not receive the proceeds of any such compromise or settlement until the Court has issued an order excusing the personal representative from entering additional security or requiring additional security, and, in the latter event, only after the additional security has been entered. See PEF Code §3323(b).