2011 Kentucky Revised Statutes CHAPTER 397 UNIFORM SIMULTANEOUS DEATH ACT 397.1007 Protection of payors, bona fide purchases, and other third parties -- Personal liability of recipient.
KY Rev Stat § 397.1007 (1996 through Reg Sess) What's This?
397.1007 Protection of payors, bona fide purchases, and other third parties -Personal liability of recipient.
(1)
(2)
(3)
(a)
A payor or other third party shall not be liable for having made a payment or
transferred an item of property or any other benefit to a beneficiary designated
in a governing instrument who, under this chapter, is not entitled to the
payment or item of property, or for having taken any other action in good faith
reliance on the beneficiary's apparent entitlement under the terms of the
governing instrument, before the payor or other third party received written
notice of a claimed lack of entitlement under this chapter. A payor or other
third party shall be liable for a payment made or other action taken after the
payor or other third party received written notice of a claimed lack of
entitlement under this chapter.
(b) Written notice of a claimed lack of entitlement under paragraph (a) of this
subsection shall be mailed to the payor's or other third party's main office or
home by registered or certified mail, return receipt requested, or served upon
the payor or other third party in the same manner as a summons in a civil
action. Upon receipt of written notice of a claimed lack of entitlement under
this chapter, a payor or other third party shall pay any amount owed, or
transfer or deposit any item of property held by it, to or with the court having
jurisdiction of the probate proceedings related to the decedent's estate, or if no
proceedings have been commenced, to or with the court having jurisdiction of
probate proceedings relating to the decedent's estate located in the county of
the decedent's residence. The court shall hold the funds or item of property
and, upon its determination under this chapter, shall order disbursement in
accordance with the determination. Payments, transfers, or deposits made to or
with the court shall discharge the payor or other third party from all claims for
the value of amounts paid to or items of property transferred to or deposited
with the court.
A person who purchases property for value and without notice, or who receives a
payment or other item of property in partial or full satisfaction of a legally
enforceable obligation, shall not be obligated under this chapter to return the
payment, item of property, or benefit and shall not be liable under this chapter for
the amount of the payment or the value of the item of property or benefit. But a
person who, not for value, receives a payment, item of property, or any other benefit
to which the person is not entitled under this chapter shall be obligated to return the
payment, item of property, or benefit or shall be personally liable for the amount of
the payment of the value of the item of property or benefit, to the person who is
entitled to it under this chapter.
If this chapter, or any part of this chapter, is preempted by federal law with respect
to a payment, an item of property, or any other benefit covered by this chapter, a
person who, not for value, receives the payment, item of property, or any other
benefit to which the person is not entitled under this chapter shall be obligated to
return the payment, item of property, or benefit or shall be personally liable for the
amount of the payment or the value of the item of property or benefit, to the person
who would have been entitled to it were this chapter, or part of this chapter, not
preempted.
Effective: July 15, 1998
History: Created 1998 Ky. Acts ch. 415, sec. 7, effective July 15, 1998.
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