KRS 395.610: Periodic accounting by fiduciaries -- Requirements.

(1) Two (2) years after appointment and annually thereafter, unless otherwise provided

by law, every fiduciary as defined in KRS 395.001, other than a guardian or

conservator of a mentally disabled person, shall render an account of the execution

of his or her trust and file it with the court by which he or she was appointed.

(2) A periodic settlement shall be filed until all trust assets and investments have been

fully distributed and all debts, costs, fees, and taxes have been paid or accounted

for.

(3) A periodic settlement shall identify all assets and investments of the trust estate on

hand, including a beginning and current value, and shall account for all receipts and

disbursements occurring since the last inventory or settlement with supporting

documentation.

(4) Notwithstanding subsection (1) of this section, at any other time upon order of the

court either on its own motion, or upon the motion of any person interested in the

trust, for good cause shown, a fiduciary shall file a periodic settlement that meets

the requirements of subsection (3) of this section and as otherwise ordered by the

court.

(5) In addition to the requirements of subsection (3) of this section, all final settlements

shall include:

(a) A complete accounting for and distribution of th e trust estate assets and

investments, including whether the distribution was:

1. In kind and if so to whom; or

2. Liquidated for cash for payment of debts, costs of administration, or

pecuniary legacies;

(b) A list of all unpaid creditors whose claims have been allowed and all creditors

whose claims have been disallowed;

(c) Fees and commissions paid to the fiduciary and his or her attorney; and

(d) Provision for state inheritance tax and federal estate tax, if any.

(6) No settlement of a fiduciary, except of corporate fiduciaries under the supervision

of state or federal banking authorities, shall be approved until there are exhibited to

the court, for its examination, the security or securities shown in the account as

being in the hands of the fiduciary, or the certificate of a bank having possession

thereof or in which they have been deposited for safekeeping, and a certified bank

statement showing the funds to the credit of the trust.

(7) The clerk of the c ourt shall record all settlements that are approved and confirmed

by the court.

(8) Guardians and conservators of mentally disabled persons may be required to render

accountings to the court under the provisions of this section. Guardians and

conservators of mentally disabled persons shall comply with the reporting

requirements of KRS Chapter 387.