FIDUCIAL AND JUDICIAL SALES OF REAL ESTATE

KRS tit. XXXIII, ch. 389A

in effect

KRS 389A.010 Jurisdiction of District Court -- Notice -- Adversary proceedings to be in Circuit Court

389A.010. Jurisdiction of District Court -- Notice -- Adversary proceedings to be in Circuit Court (1) Notwithstanding any other statutory limitation of the jurisdiction of the District Court: (a) Any trustee, guardian, conservator, or personal representative (hereinafter "fiduciary"), not otherwise possessing a power of sale, may move the District Court of the county in which the fiduciary has qualified for an order granting the fiduciary the power to sell or mortgage any real estate or any interest in the real estate possessed by his or her ward, decedent, or trust; and (b) The District Court may enter an order granting the fiduciary the power to sell or mortgage any real estate or any interest in the real estate possessed by the ward, decedent, or trust. (2) The motion shall include an adequate description of the property, a summary of the grounds for the motion, and a request that the bond of the fiduciary be increased in an adequate amount in accordance with KRS 395.130. (3) (a) Unless waived in writing, written notice of the hearing with a copy of the motion shall be served in a manner authorized by the Rules of Civil Procedure for the initiation of a civil action upon all persons who have a vested or contingent interest in the property interest sought to be sold. (b) Where the property interest sought to be sold belongs to a person under legal disability, service of notice and defense shall be governed by Civil Rules 4.04(3) and 17.03. (c) In the case where the subject of the action is the property interest of a person under legal disability, unless waived in writing, written notice shall be given by certified mail, return receipt requested, to all known adult next of kin and shall include: 1. The nature and pendency of the action; and 2. The time, date, and location of the hearing. The notice required under this paragraph shall be given no later than thirty (30) days prior to the date of the hearing on the motion. (d) At or before the hearing, the fiduciary or his or her attorney shall file an affidavit on personal knowledge showing compliance with paragraphs (a) to (c) of this subsection with the following attachments: 1. A copy of the notice given; and 2. The original of all receipts returned. (e) All persons under this subsection shall have standing to present evidence and to be heard at the hearing. (4) Any party aggrieved by any order affecting the right of the fiduciary to sell or mortgage any property or property interest under this section may, no later than thirty (30) days from the date of the order, institute an adversary proceeding in Circuit Court pursuant to KRS 24A.120(2). Pending the entry of a final order and expiration of the time for an appeal therefrom, neither the fiduciary nor the owner of any vested interest shall make any conveyance or mortgage of the real estate and any attempt to do so shall be voidable by the court until: (a) The time for an appeal of any final order entered following the hearing under subsection (3) of this section has expired pursuant to the Rules of Civil Procedure; or (b) Any adversary proceeding instituted under this subsection has been finally adjudicated and the time for an appeal from the final adjudication order has expired pursuant to the Rules of Civil Procedure. The provisions of this subsection shall be retroactive and shall apply to conveyances made prior to June 29, 2023. (5) No proceedings under this section shall be conducted by or before a commissioner of the District Court. Effective: June 29, 2023 History: Amended 2023 Ky. Acts ch. 177, sec. 3, effective June 29, 2023. -- Amended 1998 Ky. Acts ch. 517, sec. 9, effective September 1, 1998. -- Amended 1988 Ky. Acts ch. 90, sec. 1, effective July 15, 1988. -- Amended 1984 Ky. Acts ch. 111, sec. 157, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 141, sec. 145, effective July 1, 1982; and ch. 277, sec. 4, effective July 15, 1982. -- Created 1980 Ky. Acts ch. 87, sec. 2, effective July 15, 1980. Legislative Research Commission Note (6/24/2003). Under the authority of KRS 7.136, the Reviser of Statutes has changed a reference in subsection (4) of this section from "KRS 24A.120(1)(b)" to "KRS 24A.120(2)."

KRS 389A.015 Order by District Court granting power to fiduciary

389A.015. Order by District Court granting power to fiduciary (1) An order by the District Court granting a fiduciary power under KRS 389A.010 shall contain an adequate description of the property and shall recite that it is a final order. (2) The deed or mortgage from the fiduciary in exercise of the power granted shall recite in the source of title thereto the place where the order giving such authority may be found, and a certified copy of the order shall be recorded with the deed. Effective: July 15, 1980 History: Created 1980 Ky. Acts ch. 87, sec. 3, effective July 15, 1980.

KRS 389A.020 Limitation on power of fiduciary to sell or mortgage property -- Circuit clerk may alter

389A.020. Limitation on power of fiduciary to sell or mortgage property -- Circuit clerk may alter In the event the power of a fiduciary to sell or mortgage any real estate is expressly limited by the will or trust instrument under which he is acting, such limitation may only be altered or amended by the Circuit Court of the county wherein the fiduciary was appointed, or if the fiduciary is acting under an agreement of trust without court supervision, the county in which the trust is or could be registered, in an action brought by the fiduciary in which all persons having a present or contingent interest in the property interest sought to be sold or mortgaged or its proceeds are made parties. Before adjudging that the fiduciary may deviate from the terms of the will or trust the court shall determine that there exist circumstances apparently unknown to the testator or settlor; that such circumstances would substantially impair the accomplishment of the purposes intended; and that deviation is in the best interests of all parties concerned. Effective: July 15, 1982 History: Amended 1982 Ky. Acts ch. 277, sec. 5, effective July 15, 1982. -- Created 1980 Ky. Acts ch. 87, sec. 4, effective July 15, 1980.

KRS 389A.025 Proceeds of sale or mortgage for benefit of persons entitled thereto

389A.025. Proceeds of sale or mortgage for benefit of persons entitled thereto The net proceeds of the sale or mortgage of real estate by a fiduciary shall be held, invested or distributed for the benefit of the persons who, but for the sale or mortgage, would be entitled to the income derived therefrom or the possession thereof, in accordance with law or the will or trust under which he is acting. Effective: July 15, 1980 History: Created 1980 Ky. Acts ch. 87, sec. 5, effective July 15, 1980.

KRS 389A.030 Action in Circuit Court for sale or division of property

389A.030. Action in Circuit Court for sale or division of property (1) When two (2) or more persons other than tenants by the entirety in residential property actually occupied by them as a principal residence share title to real estate in such manner that a conveyance by them jointly would pass a fee simple title, any one (1) or more of them may bring an action for the sale or division thereof in the Circuit Court of the county in which the land, or the greater part thereof, lies, making parties defendant those owners who have not joined as plaintiffs. A fiduciary possessing a power of sale may institute such an action against owners of interests not represented by him. Defendant owners shall be brought before the court in the manner provided by the civil rules whether or not a fiduciary possesses a power of sale of the defendant's interest, but any fiduciary possessing such a power shall also be made a defendant. The case shall be tried without a jury. (2) A defendant who is under disability and for whom no fiduciary is acting shall be represented in the action by a guardian ad litem, but in the event of sale of such defendant's interest the court shall retain control of the proceeds of such interest until a duly appointed and adequately bonded fiduciary or custodian pursuant to a court order makes claim to the funds. (3) In all such actions indivisibility of the real estate shall be presumed unless an issue in respect thereto is raised by the pleading of any party, and if the court is satisfied from the evidence that the property is divisible, without materially impairing the value of any interest therein, division thereof pursuant to KRS 381.135 shall be ordered. (4) If a sale of all or any part of the real estate shall be ordered, the court shall refer the matter to the master commissioner or appoint a commissioner to conduct a public sale and convey the property upon terms of sale and disposition of the net proceeds as may have been determined by the court. (5) The death of any party pending the action and prior to distribution of the proceeds of sale or setting apart a divisible share shall not affect the action but the court may direct distribution or apportionment to the successors in interest of the decedent upon application therefor. (6) If the interest of any party be one for life, or other term, in any portion of the real estate, the court shall determine the value of such interest and direct that such party receive a portion of the net sale proceeds or portion of the property if divisible, in fee in satisfaction of such interest, but if any party to the action objects to such procedure, and if the court finds that such procedure would defeat the objects and purpose of a person not a party to the action, such as a testator, grantor or settlor, but that sale or division is nevertheless desirable, the court shall order that the interest of the life or term tenant shall continue as to his portion of the real estate or the net proceeds of the sale thereof, in the latter case by directing that the funds derived from the sale of that portion of the real estate in which the life or term interest existed be paid to a trustee, appointed by and accountable to the District Court, for reinvestment and distribution of income and principal in a manner consistent with the instrument under which the life or term estate was created. Effective: July 15, 1982 History: Amended 1982 Ky. Acts ch. 277, sec. 6, effective July 15, 1982. -- Created 1980 Ky. Acts ch. 87, sec. 6, effective July 15, 1980.

KRS 389A.032 Private sale of property without prior judicial proceeding or judgment, but subject to court approval

389A.032. Private sale of property without prior judicial proceeding or judgment, but subject to court approval Without previous judicial proceeding or judgment, an interest in real property held by a fiduciary for the benefit of a ward, or by more than one (1) person or by an unknown heir may be sold by private sale subject to court approval. An action for approval of sale shall be brought in the manner provided for judicial approval prior to sale in KRS 389A.030 and 389A.035. Effective: February 6, 1984 History: Created 1984 Ky. Acts ch. 9, sec. 1, effective February 6, 1984.

KRS 389A.035 Interests of persons unborn or not immediately ascertainable

389A.035. Interests of persons unborn or not immediately ascertainable When two (2) or more persons share title to real estate but an interest therein may be possessed by persons unborn or not immediately ascertainable, an action for sale or division may be brought in the same manner as provided in KRS 389A.030 but the interest of the unborn or unascertainable persons, unless a living member of the class to which such persons belong who is sui juris is a party to the action, shall be represented by a guardian ad litem who is not acting in such capacity for any other party to the action. In the event of sale or division under this section, the court shall apply the provisions of subsection (6) of KRS 389A.030 to preserve the interest of the unborn or unascertainable persons until they are born, ascertained or the class to which they belong otherwise closes. Effective: July 15, 1980 History: Created 1980 Ky. Acts ch. 87, sec. 7, effective July 15, 1980.

KRS 389A.040 Repealed, 1982

389A.040. Repealed, 1982 Catchline at repeal: Conveyance or mortgage void during certain period. History: Repealed 1982 Ky. Acts ch. 277, sec. 21, effective July 15, 1982. -- Created 1980 Ky. Acts ch. 87, sec. 8, effective July 15, 1980.

KRS 389A.045 Short title

389A.045. Short title This chapter shall be titled "Fiducial and Judicial Sales of Real Estate." Effective: July 15, 1980 History: Created 1980 Ky. Acts ch. 87, sec. 1, effective July 15, 1980.

Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=39186Fetched: 10/20/2026