KRS 396.175: Proportionate payment of claims.

(1) All assets of estates being administered in this state are subject to all claims,

allowances and charges existing or established against the personal representative

wherever appointed.

(2) If the estate either in this state or as a whole is insufficient to cover all exemptions

and allowances determined by the law of the decedent's domicile, prior charges and

claims, after satisfaction of the exemptions, allowances, and charges, each claimant

whose claim has been allowed either in this state or elsewhere in administrations of

which the personal representative is aware, is entitled to receive payment of an

equal proportion of his claim. If a preference or security in regard to a claim is

allowed in another jurisdiction but not in this state, the creditor so be nefited shall

receive payment out of local assets only upon the balance of his claim after

deducting the amount of the benefit.

(3) In case the exemptions and allowances, prior charges and claims of the entire estate

exceed the total value of the portions of the estate being administered separately and

this state is not the state of the decedent's last domicile, the claims allowed in this

state shall be paid their proportion if local assets are adequate for the purpose, and

the balance of local assets shall be transferred to the domiciliary personal

representative. If local assets are not sufficient to pay all claims allowed in this state

in the amount to which they are entitled, local assets shall be marshaled so that each

claim allowed in this state is pai d its proportion as far as possible, after taking into

account all payments on claims allowed in this state from assets in other

jurisdictions.