Disclaimer: This is not legal advice. It is for informational purposes only.
Detailed Answer
After a person dies in Kentucky, the personal representative must notify creditors and handle their claims following the Kentucky Revised Statutes. The process generally unfolds in six steps.
Step 1: Appoint a Personal Representative
The court issues letters testamentary or of administration to a personal representative. These letters authorize the representative to act on behalf of the estate.
Step 2: Identify Potential Creditors
The personal representative compiles a list of known and potential creditors by reviewing the decedent’s records, mail, and financial statements.
Step 3: Publish Statutory Notice to Creditors
Kentucky law requires publication of a notice to creditors in a newspaper of general circulation in the county where the estate is probated. See KRS 394.200. The notice must run once and inform creditors of the deadline to file claims.
Step 4: Mail Individual Notice to Known Creditors
Within 30 days of appointment, the representative must mail a notice to each known creditor by first-class mail at their last known address. Known creditors have six months from the date of the first publication to file a claim. See KRS 394.170.
Step 5: File and Review Claims
Creditors file written claims with the probate court. The personal representative reviews each claim to verify validity, amount, and priority under KRS 394.360. Invalid or disputed claims may be contested in court.
Step 6: Pay or Contest Claims
Valid claims are paid according to Kentucky’s priority scheme: administrative expenses, funeral expenses, taxes, secured claims, and general unsecured creditors. The representative either pays approved claims or petitions the court to disallow contested ones.
Helpful Hints
- Start creditor notice immediately after appointment of a personal representative.
- Keep detailed records of all mailings and publications.
- Confirm deadlines by referring to KRS Chapter 394.
- Consider consulting an attorney to review complex or disputed claims.
- Ensure all creditor communications comply with Kentucky court rules.