Government Relations Update from KBA
Kentucky Amends Estate Claim Statutes
08/05/2020Effective July 15, 2020 there are substantive changes to the Kentucky Revised Statutes that you should be aware of regarding the filing of unsecured claims in probate cases.
Based on the new KRS 396.011, most unsecured claims are barred by the earlier of:
These new statutes significantly expedite the estate claims process. However, that means you must be diligent in tracking customers' dates of death as well as informing all bank employees what to do when they receive written notice from an estate. There is no requirement that notice be sent to a particular branch, location or person so check your mail and deliveries carefully.
- Eight (8) months from the date of death; (this used to be two (2) years);
- Six (6) months from the date of the appointment of a personal representative, if one is appointed (same as prior law); or
- Sixty (60) days from written notice to the bank (new).
Probate clerks are now required to publish notice in the newspaper at least once a month setting forth the information regarding the estate and that creditors must present claims within six (6) months. This may be your best means of attaining this information since personal representatives ae not liable for providing creditors notice under the new KRS 369.012(3).
It is important to note that KRS 396.011(2)(a) expressly excludes secured claims.
If you have any questions please feel free to reach out to us.
Timothy A. Schenk
Assistant General Counsel