KRS 387.280: Handling amount of not more than $10,000 due to person under

disability who has reached age of 18.

(1) When a person under disability who has reached the age of eighteen (18),

having no guardian or conservator, is entitled to receive a sum not exceeding

ten thousand dollars ($10,000), exclusive of interest, in any action in which real

estate has been sold, or in the settlement of any estate, or from any other

source, the person having custody of the person under disability may settle or

compromise the dollar amount when in the interest of the person under

disability.

(2) The court in which the action is pending, or, if the sum does not derive from the

action, the District Court, may order the sum to be paid to the person having

custody of the person under disability. Before entering the order, the court shall

approve any settlement or compromise and shall be satisfied by affidavit or oral

testimony that the person under disability is in the custody of the person to

whom it is proposed to pay the money and the latter, upon withdrawal of the

money, shall be under obligation as trustee to expend it, for the support,

maintenance, or education of the person under disability.

(3) When the order is made, no bond shall be required of the person having

custody of the person under disability. If the sum due to the person under

disability is from the sale of real property, the purchaser of the real property

may pay the share of the person under disability into court, and no lien shall

remain on the property therefor. The money may be withdrawn by the person

mentioned in the order without that person giving bond.

(4) A release executed by the person to whom the court has ordered the sum paid

shall have the same effect as a release by a duly appointed guardian.