Kentucky's Laws on a Probate Bond

When a Kentucky property owner dies, state laws require the estate of the decedent to go through probate, a court-supervised settlement orocess. Debts are to be paid and accounts with creditors settled before the assets are transferred to beneficiaries. Part of the process requires the personal representative responsible for settling the debts of the state to post a probate bond, a written promise, guaranteeing he will perform their duties responsibility.

Guarantors

Kentucky Revised Statutes 395.130 states that every fiduciary, the trustee, of an estate in probate must provide a guarantor on a probate bond. A guarantor, someone who takes formal responsibility for debt obligations, such as an insurance company, provides surety that the fiduciary will perform their duties. However, there are exceptions. At the court's discretion, a bond may not be required or if the will of the decedent specifically excludes a bond from being required, the court can declare an exception on a case-by-case basis. According to KRS 395.130, the court also may reduce the bond or allow the substitution of another bond with the same or different guarantors.

Prohibited Surety

Kentucky law as outlined in KRS 395.140 prohibits any member of the District Court in which probate matters are settled to stand as surety on a probate bond. This section of the Kentucky Revised Statutes also states that after the probate court approves the bond brought forth by the personal representative, the probate bond must be recorded and retained in the court clerk's office for safekeeping.

Estate Guardian

KRS 395.410 states that if for any reason, by actions of the court, the settlement of an estate is delayed, the court may appoint a guardian to take control of the assets of the estate and to retain the assets until the probate is settled. If this action is taken, a guaranteed bond will be required from the guardian ensuring the guardian's trustworthy performance of the duties required to protect the assets.

Cost Reimbursement

Kentucky law, as written in KRS 395.130, specifies that if a probate bond is required and the personal representative of the estate uses a private provider, such as an insurance company, to execute the bond, the cost incurred by the personal representative for the probate bond service can lawfully be charge to the estate. In other words, with the approval of the court, the expenses of the estate's personal representative can be paid from the assets of the estate.

References

• Kentucky: Court of Justice - Guide to Basic Kentucky Probate Procedures
• Kentucky Revised Statutes: KRS 395.130 Bond, When Required -- Cost of Corporate Surety Paid from Estate
• Kentucky Revised Statutes: KRS 395.140 Bond -- Persons not to be Surety On -- Recording of
• Kentucky Revised Statutes: KRS 395.410 Curator -- Grounds for Appointment -- Bond

Resources

• University of Kentucky Extension Service: Estate Planning: Wills and Probate in Kentucky