{"data":{"id":"us-ky/krs-395.195","jurisdiction":"us-ky","citation":"KRS 395.195","heading":"Transactions authorized for personal representative -- Exceptions.","body":"Except as restricted or otherwise provided by the will, or by KRS 395.200, a personal\nrepresentative, acting reasonably for the benefit of the interested persons, may properly:\n(1) Retain assets owned by the decedent pending distribution or liquidation inc luding\nthose in which the representative is personally interested or which are otherwise\nimproper for trust investment;\n(2) Receive assets from fiduciaries, or other sources;\n(3) Perform, compromise or refuse performance for proper cause of the decedent's\ncontracts that continue as obligations of the estate, as he may determine under the\ncircumstances;\n(4) Satisfy written charitable pledges of the decedent irrespective of whether the\npledges constituted binding obligations of the decedent or were properly p resented\nas claims, if in the judgment of the personal representative the decedent would have\nwanted the pledges completed under the circumstances;\n(5) If funds are not needed to meet debts and expenses currently payable and are not\nimmediately distributab le, deposit or invest liquid assets of the estate, including\nmoneys received from the sale of other assets, in federally insured interest -bearing\naccounts, readily marketable secured loan arrangements or other prudent\ninvestments which would be reasonable for use by trustees generally;\n(6) Acquire or dispose of an asset, other than land, for cash or on credit, at public or\nprivate sale; and manage, exchange, or change the character of an estate asset;\n(7) Enter for any purpose into a lease for personal prop erty as lessor or lessee, with or\nwithout option to purchase or renew, for a term within or extending beyond the\nperiod of administration;\n(8) Abandon personal property when, in the opinion of the personal representative, it is\nvalueless, or is so encumber ed, or is in such condition that it is of no benefit to the\nestate;\n(9) Vote stocks or other securities in person or by general or limited proxy;\n(10) Pay calls, assessments, and other sums chargeable or accruing against or on account\nof securities, unless barred by the provisions relating to claims;\n(11) Hold a security in the name of a nominee or in other form without disclosure of the\ninterest of the estate but the personal representative is liable for any act of the\nnominee in connection with the security so held;\n(12) Insure the assets of the estate against damage, loss and liability and himself against\nliability as to third persons;\n(13) Borrow money with or without security to be repaid from the probatable assets or\notherwise; and advance money for the protection of the estate;\n(14) Effect a fair and reasonable compromise with any debtor or obligor, or extend,\nrenew or in any manner modify the terms of any obligation owing to the estate. If\nthe personal representative holds a mortgage, pledge or other lien upon property of\nanother person, he may, in lieu of foreclosure, accept a conveyance or transfer of\nencumbered assets from the owner thereof in satisfaction of the indebtedness\nsecured by lien;\n(15) Pay taxes, assessments, compensation of the personal representative, and other\nexpenses incident to the administration of the estate;\n(16) Sell or exercise stock subscription or conversion rights; consent, directly or through\na committee or other agent, to the reorganization, consolidation, merger,\ndissolution, or liquidation of a corporation or other business enterprise;\n(17) Allocate items of income or expense to either estate income or principal, as\npermitted or provided by law;\n(18) Employ persons, including attorneys, auditors, investment advisors, or agents, to\nadvise or assist the pe rsonal representative in the performance of his administrative\nduties; act without independent investigation upon their recommendations; and\ninstead of acting personally, employ one (1) or more agents to perform any act of\nadministration, whether or not discretionary;\n(19) Prosecute or defend claims, or proceedings in any jurisdiction for the protection of\nthe estate and of the personal representative in the performance of his duties;\n(20) Sell or mortgage any personal property or any interest therein for cash, credit, or for\npart cash and part credit, and with or without security for unpaid balances;\n(21) Provide for exoneration of the personal representative from personal liability in any\ncontract entered into on behalf of the estate;\n(22) Satisfy, settle or compromise claims and distribute the estate as provided by law;\nand\n(23) Take such actions as are necessary to cause gains from the sale or exchange of\nestate assets as determined for federal income tax purposes, to be taxed for federal\nincome tax purpo ses as a part of a distribution of income, including the power to\nallocate such gains to income for the purpose of making discretionary distributions\nand to allocate such gains to income which has been increased by an adjustment\nfrom principal to income pu rsuant to KRS 386.454(1), to a unitrust distribution, or\nto a distribution of principal to a beneficiary.","path":["KRS Chapter 395"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43176","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:26Z","sha256":"06296b0f4a1ad1ab5ce0e57c13aa4f18af66a9918c6dc599d004ddd23bbfc815","source_id":"us-ky","stale":false,"prev":"us-ky/krs-395.190","next":"us-ky/krs-395.196"},"notice":"GroundRules: Original legal text. Not legal advice."}