Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS Chapter 13B, 210.290, 387.010(6), 387.510(15),
387.760
NECESSITY, FUNCTION, AND CONFORMITY: Pursuant to
KRS
210.290(4)-(6), the Cabinet
for Health and Family Services is authorized to establish a guardianship trust
fund that may be used for the benefit of individuals under state guardianship
who are indigent. This administrative regulation establishes procedures used by
the cabinet to provide public notice of any funds remaining after expenses are
paid following the death of an individual under state guardianship who has an
estate of less than ten thousand dollars ($10,000) of personal property or
money and the process for claiming that property. This administrative
regulation establishes the procedures used for any funds that remain unclaimed
after the expiration of one (1) year to escheat to the guardianship trust fund
and how the guardianship trust fund may be utilized.
Section 1. Definitions.
(1) "Applicant" or "Claimant" means the
person who has applied to receive unclaimed personal property or funds of a
deceased ward listed on the registry.
(2) "Beneficiary" means an individual or
entity that has been identified as a recipient of the estate pursuant to the
order of a probate court in this or any other state.
(3) "Cabinet" means the Cabinet for Health
and Family Services.
(4)
"Department" means the Department for Aging and Independent Living.
(5) "Guardianship trust fund" or "trust"
means the guardianship trust fund established by
KRS
210.290(4)-(6).
(6) "Guardianship unclaimed funds registry"
or "registry" means the registry maintained by the department to post unclaimed
funds of a deceased ward.
(7)
"Heir" means a legal relative, limited to a spouse, parent, child, or sibling
of the deceased appointee.
(8)
"Individual under guardianship" means a ward of the state as defined by
KRS
387.010(6).
Section 2. Public Notice of
Remaining Funds.
(1) Upon the death of an
individual under guardianship who has less than $10,000 in personal property or
funds, the department shall pay, in priority order, the following:
(a) Funeral expenses:
1. If not prepaid; and
2. If not covered by life
insurance;
(b)
Outstanding bills related to living expenses including:
1. Rent to a landlord; and
2. Utility companies; and
(c) Medicaid estate recovery
owed.
(2) Funds
remaining after expenses listed in Subsection 1(a) - (c) of this section shall
be listed on the registry for a period of one (1) year from the date
posted.
(3) The registry shall be
maintained on the department's website and shall include:
(a) Name of deceased individual under
guardianship;
(b) Year of
birth;
(c) Date of death;
(d) Last known city of residence;
(e) Date notice is posted on the
registry;
(f) The date the notice
expires;
(g) If the amount or value
remaining in the estate is more or less than $100; and
(h) The account number.
Section 3. Notice of Registry for
Claiming Funds. The cabinet may utilize public announcements, interagency
agreements, and announcements to creditors associations, including funeral
homes and nursing home associations, in order to provide notice to the public
of the registry.
Section 4. Filing
a Claim for Funds as a Creditor, Heir, or Beneficiary.
(1) The cabinet shall make available on its
website the:
(a) "GUF-1 Guardianship
Unclaimed Funds Registry Claim Form - Creditor" for any creditor; and
(b) "GUF-2 Guardianship Unclaimed Funds
Registry Claim Form - Individual" for any heir or beneficiary of the deceased
ward.
(2) All claims
shall be submitted by mail. No claim shall be accepted in person, by fax, or by
email.
(3) The cabinet shall review
all claims received no later than thirty (30) days of the expiration of one (1)
year after the public notice of estate funds is listed. Funds shall not be
released prior to the expiration of the one (1) year period for filing
claims.
(4) Creditors shall have
first preference to receive payment from the estate in order as set forth in
KRS
210.290(4)(b).
(5) A beneficiary of the estate shall submit
a "GUF-2 Guardianship Unclaimed Funds Registry Claim Form - Individual", and
the following documentation:
(a) A copy of
the will of the deceased individual under guardianship;
(b) A verified copy of an order of a probate
court that the beneficiary is entitled to the funds or personal property, or is
the administrator or executor of the deceased's estate; and
(c) A copy of the applicant's driver's
license or identification card as proof of identity.
(6) An heir of the estate shall submit a
"GUF-2 Guardianship Unclaimed Funds Registry Claim Form - Individual", and the
following documentation:
(a) A copy of the
applicant's driver's license or identification card as proof of identity;
and
(b)
1. If a spouse, a copy of the marriage
certificate;
2. If a sibling or
child of the deceased individual under guardianship, a copy of the applicant's
birth certificate; or
3. If a
parent of the deceased individual under guardianship, a copy of the deceased's
birth certificate.
(7) A creditor, other than Medicaid Estate
Recovery Program, of the deceased individual under guardianship shall submit a
"GUF-1 Guardianship Unclaimed Funds Registry Claim Form - Creditor", and the
following documentation:
(a) An affidavit
setting out the relationship to the deceased, the services provided, and the
amount owed; and
(b) An itemized
copy of the statement of charges owed, a description of the service provided,
and dates of service.
(8) Medicaid Estate Recovery Program may file
a claim by providing the notice required by
907 KAR
1:585.
(9)
All claims submitted within one (1) year of the public notice of a deceased
individual under guardianship's funds shall be:
(a) Processed; and
(b) Paid, if valid.
(10) Any remaining funds of the ward shall
escheat to the guardianship trust fund.
Section 5. Informal Dispute Resolution and
Appeal of Determination Regarding Claim.
(1)
Any person or entity aggrieved over a determination by the department regarding
a claim may file an informal dispute resolution, which shall be received by the
department within fifteen (15) calendar days of the date on the written
decision letter.
(2) The request
for informal dispute resolution shall be in writing and mailed to the
commissioner of the department.
(3)
The informal dispute resolution shall include the following information:
(a) Name, address, and telephone number of
the claimant;
(b) Justification for
the dispute;
(c) Documentation
supporting the dispute; and
(d)
Signature of person requesting the informal dispute resolution.
(4) The commissioner, or his or
her designee, may:
(a) Hold an informal
dispute resolution meeting to consider the sufficiency of the claim;
and
(b) Provide an opportunity for
the claimant to appear to present facts or concerns about the claim.
(5) A complete record of the
informal dispute resolution meeting shall be kept for three (3) years. The
claimant shall be notified of the determination, including the reason, and the
right to appeal, in writing within ten (10) business days.
(6) A claimant dissatisfied with the
determination of the informal dispute resolution may request an administrative
hearing be conducted in accordance with KRS Chapter 13B.
(7) The request for administrative hearing
shall be received:
(a) Within thirty (30)
calendar days from the date on the letter providing the decision of the
informal dispute resolution;
(b) In
writing; and
(c) To the Office of
the Ombudsman and Administrative Review, Quality Advancement Branch, 275 E.
Main Street, 2 E-O, Frankfort, Kentucky 40621.
Section 6. Matters not Appealable: An
administrative hearing shall not be conducted if:
(1) The applicant has submitted a claim for
funds within one (1) year of the date public notice is posted on the
registry.
(2) The applicant has
failed to submit a request for administrative hearing within the thirty (30)
day time period.
(3) The applicant
has failed to produce the documentation required by this administrative
regulation when submitting a claim for funds.
(4) The applicant is not an heir as defined
by Section 1(7) of this administrative regulation.
Section 7. Guardianship Trust Fund:
Investments and Disbursements.
(1) The cabinet
may establish the trust with a bank, taking into consideration the location of
the bank and if the bank has an established trust division.
(2) The cabinet shall be trustee and shall
invest in the funds as authorized by
KRS
210.290(5).
(3) Funds may be utilized from the trust for
banking fees and charges and for the cost of personnel needed within the
department to maintain the registry and process disbursements. All other funds
of the trust shall be utilized for the needs of indigent individuals under
guardianship of the cabinet.
(4)
The trust may accept donations and conduct fundraising functions.
(5) Disbursements from the trust may be
authorized by the commissioner of the department or by his or her designee in
accordance with subsection (7) of this section.
(6) Requests for disbursements from the trust
for an individual under guardianship may be made by any employee of the
department or by an individual under guardianship.
(7) The following disbursements may be
authorized to the extent funds are available in the trust:
(a) Temporary housing costs not to exceed the
cost of housing for two (2) months for an individual under guardianship:
1. With no housing;
2. Who has received an eviction notice;
or
3. Who is the victim of abuse,
neglect, or exploitation and due to the circumstance is no longer able to
safely remain in their current living environment and has no access to
alternative living arrangements;
(b) Medical supplies, medication, or medical
transportation that are not covered by Medicaid or another insurance
plan;
(c) Emergency personal needs
including clothing or food;
(d) The
reasonable cost of burial or cremation:
1. For
an individual under guardianship at least six (6) months prior to death;
and
2. Not to exceed $5,000, for an
individual under guardianship who has no:
a.
Burial plan or life insurance;
b.
Family able to cover the cost in full; or
c. The county of death has no fund for
indigent burials; or
(e) Expenses necessary to ensure the health,
safety, and well-being if no other funds are available or accessible in a
timely manner.
Section
8. Right of Reimbursement of the Trust.
(1) The trust shall have the right of
reimbursement from an individual under guardianship.
(2) The trust shall be reimbursed as follows
by the individual under guardianship:
(a)
1. Funds received are in excess of the
individual under guardianship's cost of living expenses; or
2. Other funding sources are obtained to
cover the individual's cost of living expenses and allow for repayment to the
trust; and
(b)No other
debts are owed by the individual under guardianship for living
expenses.
Section
9. Incorporated by Reference.
(1)
The following material is incorporated by reference:
(a) "GUF-1 Guardianship Unclaimed Funds
Registry Claim Form - Creditor" edition 7/2020; and
(b) "GUF-2 Guardianship Unclaimed Funds
Registry Claim Form - Individual" edition 7/2020.
(2) This material may be inspected, copied,
or obtained, subject to applicable copyright law, at the Department for Aging
and Independent Living, 275 East Main Street, Frankfort, Kentucky 40621, Monday
through Friday, 8 a.m. to 4:30 p.m.
STATUTORY AUTHORITY: 194A.050(1),
387.760(2)