TN 14 (10-14)
GN 02315.055 Kentucky — Small Estates
A. Policy — Sections 391.030, 395.455(3) and 396.095, Kentucky revised statutes
Kentucky law recognizes certain claims against a decedent’s estate as “preferred,” such as 1) costs and expenses of administration, 2) funeral expenses, 3) debts or taxes with a preference under Kentucky or federal law, and 4) all other claims under Ky. Rev. Stat. Ann. § 396.095 (2014). The district court will transfer the decedent’s personal estate to a “preferred creditor” up to the amount of the paid claim if:
the decedent’s estate was up to $7,500 between 1988 and July 14, 2002; or up to $15,000 after July 14, 2002;
any person provides proof of payment of a preferred claim; and
the person paying the preferred claim petitions and convinces the District Court judge to dispense with administration of the estate under Ky. Rev. Stat. Ann. §§ 393.030.395.455.396.095.
B. Policy — Section 395.470 of Kentucky revised statutes
Administration of the estate of an individual dying intestate may be dispensed with by written agreement if:
There are no debts owing by the estate,
All parties beneficially entitled to the personal estate have agreed in writing that there shall be no administration; and
Either there are no claims or demands due the estate or the written agreement designates a trustee with power to collect claims and demands.
C. Procedure — Referral to Regional Attorney
Do not refer any claims processed under section 395.455, Kentucky Revised Statutes. Refer all claims processed under section 395.470 to the regional attorney for a determination as to the party who could be considered “legal representative of the estate.”