Ky. Rev. Stat. » Chapter 387
Kentucky Revised Statutes

Ky. Rev. Stat. § 387.125 (2026)

Guardian's duty as to use of ward's assets

✓ current as of May 2026
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(1) A guardian shall apply the income or principal of the ward's estate to the payment of debts, taxes, claims, charges, and expenses of the guardianship and, in accordance with KRS 387.065, for the support, care, and education of the ward or the ward's dependents.

(2) A guardian shall take possession of all of the ward's real and personal property.

(3) A guardian may sell any of the ward's personal property without District Court authorization or confirmation. To sell any of the ward's real property, a guardian shall comply with the provisions of KRS Chapter 389A.

(4) A guardian shall invest any of the ward's money or property which is not required for the ward's current support, care and education. The investments made of a ward's funds shall be investments authorized by KRS 386.020.

(5) A guardian may expend the ward's funds to repair and maintain the ward's personal and real property.

(6) A guardian may institute or defend actions, claims, or proceedings in any jurisdiction for the protection of the ward's estate. Subject to the approval of the court in which the action, claim, or proceeding has been filed, a guardian may settle or compromise the action, claim, or proceeding on behalf of the ward. If the action, claim, or proceeding has not been filed in any court, the District Court of the county where a guardian qualified shall approve the settlement or compromise. Upon approval of a settlement or compromise, a guardian may execute a release on behalf of the ward. A guardian shall receive any proceeds from a settlement for management in accordance with the provisions of this statute.

(7) A guardian may lease any real property of the ward until the ward reaches majority, but no lease shall be made for a term longer than seven (7) years unless otherwise approved by the District Court.

(8) A guardian shall obtain approval from the District Court of the county where the guardian qualified for any of the following made on behalf of the ward:

(a) Any lease of mineral rights;

(b) Any lease of oil and gas rights;

(c) Any sale of timber owned by the ward; or

(d) Any consolidation agreement, as defined by KRS 353.220. To aid it in making the decision on a proposed sale, lease, or consolidation agreement, the court shall appoint a guardian ad litem for the ward. The guardian ad litem shall report to the court on the suitability of the transaction.

(9) A guardian shall comply with the reporting requirements specified in KRS 387.175. Effective: July 13, 1990 History: Created 1990 Ky. Acts ch. 487, sec. 8, effective July 13, 1990.

Notes of Decisions
Cited in 11 cases (7 in the last 5 years), 1997–2026 · leading case: Branham v. Stewart, 307 S.W.3d 94 (Ky. 2010).
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Branham v. Stewart, 307 S.W.3d 94 (Ky. 2010). · cites it 8× “"); KRS 387.125(6) ("Subject to the approval of the court .”
Miller as Next Friend of E.M. v. House of Boom Ky., LLC, 575 S.W.3d 656 (Mo. Ct. App. 2019). “020(1), KRS 387.125(b) ) (emphasis added). Additionally, our precedent dictates that even when acting as next friend, a minor's parent has no right to compromise or settle a minor's claim without court approval or collect the proceeds of a minor's claim.”
Smithland Towing & Constr., LLC (W.D. Ky. 2024). · cites it 14× “The text of § 387.125 speaks to two types of settlements requiring approval: an “action, claim, or proceeding” that already “has been filed,” and one in which “the action, claim, or proceeding has not been filed in any court.”
Logan Coons, a Minor, by & Through Jennifer Coons, Guardian of the Est. of Logan Coons, a Minor v. Honorable Judith McDonald-burkman (Ky. 2021). · cites it 13× “” Over a month following the mediation, Coons attempted to repudiate as “null and void” the settlement document for several asserted reasons, including (1) that Jennifer lacked the authority contractually to settle claims on Logan’s behalf under KRS 387.125, even as his next…”
Scott v. Montgomery Traders Bank & Trust Co., 956 S.W.2d 902 (Ky. 1997). “020(1)-KRS 387.125(b). Sheila, the tortfeasor, and the bank’s failure to comply with these basic mandatory guardianship statutes is perplexing.”
Ralph Gentry v. Commonwealth of Kentucky (Ky. 2010). · cites it 2× “" 18 KRS 387.125(6) ("A guardian may institute or defend actions, claims, or proceedings in any jurisdiction for the protection of the ward's estate .”
Charles E. Brooks by Elderserve, Inc., Legal Guardians v. Hon Tara Hagerty, Jefferson Circuit Court Judge, Fam. Div. 5 (Ky. 2021). “”56 Guardians must also file an annual report with the district court summarizing the ward’s current mental, physical, and social condition, 52 See KRS 387.125(6) (“A guardian may institute or defend actions, claims, or proceedings in any jurisdiction for the protection of the…”
Charles E. Brooks by Elderserve, Inc., Legal Guardians v. Hon Tara Hagerty, Jefferson Circuit Court Judge, Fam. Div. 5 (Ky. 2021). “”56 Guardians must also file an annual report with the district court summarizing the ward’s current mental, physical, and social condition, 52 See KRS 387.125(6) (“A guardian may institute or defend actions, claims, or proceedings in any jurisdiction for the protection of the…”
Christopher Jackson, III, as Adm'r of the Est. of Christine Jackson v. Legacy Health Servs., Inc. (Ky. 2022). “Additionally, the Court concludes that KRS 387.125 prohibits a guardian from encumbering a ward's legal rights without the approval of the court in any jurisdiction that has authority to protect the ward's estate.”
Smithland Towing & Constr., LLC (W.D. Ky. 2024). “§ 387.125(6)). This Court read the statute not to require judicial approval here.”
Allen (E.D. Ky. 2026). “§ 387.125, A.D.’s parents, McKeanzie Allen and Bobby Dykes, petitioned the Pulaski Circuit Court to be appointed as A.”
— Ky. Rev. Stat. § 387.125(6) — 7 cases
Branham v. Stewart, 307 S.W.3d 94 (Ky. 2010). “"); KRS 387.125(6) ("Subject to the approval of the court .”
Smithland Towing & Constr., LLC (W.D. Ky. 2024). “The text of § 387.125 speaks to two types of settlements requiring approval: an “action, claim, or proceeding” that already “has been filed,” and one in which “the action, claim, or proceeding has not been filed in any court.”
Logan Coons, a Minor, by & Through Jennifer Coons, Guardian of the Est. of Logan Coons, a Minor v. Honorable Judith McDonald-burkman (Ky. 2021). “” Over a month following the mediation, Coons attempted to repudiate as “null and void” the settlement document for several asserted reasons, including (1) that Jennifer lacked the authority contractually to settle claims on Logan’s behalf under KRS 387.125, even as his next…”
Ralph Gentry v. Commonwealth of Kentucky (Ky. 2010). “" 18 KRS 387.125(6) ("A guardian may institute or defend actions, claims, or proceedings in any jurisdiction for the protection of the ward's estate .”
Charles E. Brooks by Elderserve, Inc., Legal Guardians v. Hon Tara Hagerty, Jefferson Circuit Court Judge, Fam. Div. 5 (Ky. 2021). “”56 Guardians must also file an annual report with the district court summarizing the ward’s current mental, physical, and social condition, 52 See KRS 387.125(6) (“A guardian may institute or defend actions, claims, or proceedings in any jurisdiction for the protection of the…”
— Ky. Rev. Stat. § 387.125(b) — 2 cases
Miller as Next Friend of E.M. v. House of Boom Ky., LLC, 575 S.W.3d 656 (Mo. Ct. App. 2019). “020(1), KRS 387.125(b) ) (emphasis added). Additionally, our precedent dictates that even when acting as next friend, a minor's parent has no right to compromise or settle a minor's claim without court approval or collect the proceeds of a minor's claim.”
Scott v. Montgomery Traders Bank & Trust Co., 956 S.W.2d 902 (Ky. 1997). “020(1)-KRS 387.125(b). Sheila, the tortfeasor, and the bank’s failure to comply with these basic mandatory guardianship statutes is perplexing.”
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