N.Y. SCP Law § 1804

§ 1804. Contingent or unliquidated claims; retention of assets for\n estate taxes\n 1. Whenever at the death of any person there shall be a contingent or\nunliquidated claim against the decedent's estate or an outstanding bond,\nrecognizance or undertaking upon which the decedent was principal,\nsurety, or indemnitor and on which at the time of the decedent's death\nthe liability is still contingent or unliquidated, a claimant or a\nsurety shall have the right to file with the fiduciary an affidavit\nshowing the facts upon which the contingent or unliquidated liability is\nbased and the probable amount thereof, and there shall be no\ndistribution without reservation of such estate assets as the court, by\na special proceeding or upon the final accounting, shall determine to be\nadequate to pay the contingent or unliquidated claim when the amount\nthereof shall become due and payable. In fixing the amount to be\nreserved for payment of the claim the court may determine the value of\nany security or collateral to which the creditor may resort for payment\nof the debt and may thereafter direct the reservation if necessary of\nsufficient estate assets to make up the difference between the value of\nsuch security or collateral and the amount necessary to pay the\ncontingent or unliquidated claim.\n 2. If before a final judicial accounting and decree the contingent or\nunliquidated claim or liability shall have become fixed and liquidated,\nthen evidence thereof shall be filed with the fiduciary in accordance\nwith the provisions of 1803. If the contingent or unliquidated claim\nhas not become so fixed and liquidated the decree on a final accounting\nshall direct that the assets found sufficient to satisfy the claim or\nthe proportion to which it is entitled be retained in the hands of the\naccounting party for such period or periods as the court may deem proper\nfor the purpose of being applied to the payment of the claim when fixed\nand liquidated and that so much of the assets as are not needed for that\npurpose be afterwards distributed according to law.\n 3. Where the state estate tax is or may be due and the amount thereof\nhas not been finally determined or such tax cannot for any reason be\npaid at the time of final judicial accounting and decree thereon, the\ndecree on a final accounting shall direct that assets found sufficient\nto satisfy the tax or possible tax be retained in the hands of the\naccounting party for such period as the court may deem proper for the\npurpose of being applied to the payment of the tax. In that event the\ncommissioner of taxation and finance shall be among those served upon\nthe final accounting. Such portion of the assets as are not needed for\nthat purpose shall be distributed according to law.\n