KRS 210.290: Cabinet may act as fiduciary for certain disabled or partially disabled

adult residents -- Duties -- Guardianship trust fund -- Annual report -- Powers.

(1) The Cabinet for Health and Family Services may be appointed and act as executor,

administrator, guardian, limited guardian, conservator, or limited conservator as

provided in this section. In this capacity the cabinet may act as a fiduciary and

transact business in the same manner as any individual and for fiduciary purposes

may sue and be s ued in any of the courts of the state. Bond shall not be required of

the cabinet.

(2) (a) Whenever a resident of the state is adjudged partially disabled or disabled and

no other suitable person or entity is available and willing to act as limited

guardian, guardian, limited conservator, or conservator, the cabinet may be

appointed as the resident's limited guardian, guardian, limited conservator, or

conservator. As used in this paragraph, "resident of the state" means an

individual who has a permanent, ful l-time residence in Kentucky prior to the

filing of a petition for or appointment of a limited guardian, guardian, limited

conservator, or conservator for at least the previous six (6) months that is not a

hospital, treatment facility, correctional facility, or long-term care facility, and

who is a citizen or permanent resident of the United States.

(b) Notwithstanding paragraph (a) of this subsection, except upon written order of

the court in exceptional circumstances, the cabinet shall not be appointed as a

limited guardian, guardian, limited conservator, or conservator of a partially

disabled or disabled person when the person:

1. Has been convicted of, pled guilty to, or entered an Alford plea for a sex

crime as defined in KRS 17.500 or an offense that w ould classify the

person as a violent offender under KRS 439.3401; or

2. Is not alive or cannot be physically located.

(c) Before appointing the cabinet, consideration shall be given to the average

caseload of each field social worker.

(d) The cabinet, act ing through its designated officer, may apply to the District

Court of the county in which the adjudication is made for appointment as

limited guardian, guardian, limited conservator, or conservator for a partially

disabled or disabled person who meets the requirements of this subsection.

(3) When the cabinet is appointed as a limited guardian, guardian, limited conservator,

or conservator of a partially disabled or disabled person, the cabinet shall not:

(a) Assume physical custody of the person;

(b) Be assigned as the person's caregiver or custodian; or

(c) Become personally liable for the person's expenses or placement, or to third

parties for the person's actions. However, the cabinet shall procure resources

and services for which the person is eligible when necessary and available.

(4) (a) Except as provided in paragraph (b) of this subsection, upon t he death of a

person for whom the cabinet has been appointed guardian or conservator, or

upon the death of a person who has been committed to the cabinet leaving an

estate and having no relatives at the time residing within the state, the cabinet

may apply for appointment as administrator and upon appointment shall close

the administration of the estate.

(b) If a person for whom the cabinet has been appointed guardian or conservator

dies with less than ten thousand dollars ($10,000) of personal property or

money, the cabinet shall not be required to apply for appointment as

administrator. However, prior to the release of funds to the person's estate, the

cabinet shall ensure all outstanding bills related to living expenses, reasonable

funeral expenses when n ot prepaid, and estate recovery are paid. Any funds

that remain after those expenses are paid may be released first to other

creditors and then to the relatives of the ward. The cabinet shall establish an

online registry to provide public notice of remaini ng funds to other creditors

and relatives of the ward, and the process for claiming those funds.

Notwithstanding KRS 393.020, if the funds of a ward are less than ten

thousand dollars ($10,000) and remain unclaimed after the expiration of one

(1) year from the date public notice is made, the funds shall escheat to the

guardianship trust fund established in subsection (5) of this section.

(5) There is created in the cabinet a trust and agency fund to be known as the

guardianship trust fund. The trust shall c onsist of funds of deceased wards that

remain after living, funeral, and estate recovery expenses are paid and that are

unclaimed for one (1) year after public notice is made. The trust may also receive

donations or grant funds for the support of indigent wards. Notwithstanding KRS

45.229, any unused trust balance at the close of the fiscal year shall not lapse but

shall be carried forward to the next fiscal year. Any interest earnings of the trust

shall become part of the trust and shall not lapse. The tru st may make investments

as authorized by subsection (7) of this section and may use funds in the trust for the

benefit of indigent wards for expenses including:

(a) Temporary housing costs;

(b) Medical supplies or transportation services not covered by Medicaid;

(c) Emergency personal needs, including clothing or food;

(d) Burial expenses if no county funds are available in the county of death; and

(e) Expenses necessary to ensure health, safety, and well -being when no other

funds are available or accessible in a timely manner.

(6) The cabinet shall make available an annual report of income and expenditures from

the guardianship trust fund. The trust shall be subject to an independent audit at the

request of the General Assembly or the State Auditor.

(7) The cabinet may invest funds held as fiduciary in bonds or other securities

guaranteed by the United States, and may sell or exchange such securities in its

discretion. In addition, the cabinet may establish or place funds held as fiduciary in

a trust.

(8) The cabinet shall receive such fees for its fiduciary services as provided by law.

These fees shall be placed in a trust and agency account, from which may be drawn

expenses for filing fees, court costs, and other expenses incurred in the

administration of e states. Claims of the cabinet against the estates shall be

considered in the same manner as any other claim.

(9) An officer designated by the secretary may act as legal counsel for any patient in a

state mental hospital or institution against whom a suit o f any nature has been filed,

without being appointed as guardian, limited guardian, conservator, or limited

conservator.

(10) Patients hospitalized pursuant to KRS Chapters 202A and 202B who are not

adjudged disabled or partially disabled may authorize the Cabinet for Health and

Family Services to handle personal funds received by them at the hospital in the

same manner as prescribed in subsections (7) and (8) of this section.