Had a verbal agreement with a neighbor, lending him money, which he did not fully pay back on his death. The heirs say they need for me to file a lien on the property, which goes on auction next month, in order for them to pay the balance of $6500.
A loan does not fall within the lien statute. They are likely telling you to file a claim in Probate Court under KRS Chapter 396.
KRS 396.011 Presentation of claims against estate — Time limitations — Exceptions.
(1) All claims against a decedent’s estate which arose before the death of the decedent, excluding claims of the United States, the State of Kentucky and any subdivision thereof, whether due or to become due, absolute or contingent, liquidated or unliquidated, founded on contract, tort, or other legal basis, if not barred earlier by other statute of limitations, are barred against the estate, the personal representative, and the heirs and devisees of the decedent, unless presented within six (6) months after the appointment of the personal representative, or where no personal representative has been appointed, within two (2) years after the decedent’s death.
(2) Nothing in this section shall affect or prevent:
(a) To the extent of the security only, any proceeding to enforce any mortgage, pledge, lien or other security interest securing an obligation of the decedent or upon property of the estate; or
(b) To the limits of the insurance protection only, any proceeding to establish liability of the decedent or the personal representative for which he is protected by liability insurance.
Effective: July 15, 1988
History: Created 1988 Ky. Acts ch. 90, sec. 6, effective July 15, 1988
You should contact an attorney in your jurisdiction to see if you may be able to file a claim.
If you require legal assistance, please contact a lawyer in your jurisdiction for help. Do not act or refrain from acting based on what I write here. While I am an attorney, licensed in Kentucky, nothing I write here is legal advice. Nor does any communication here form an attorney/client relationship with me.