What you need
Have the inventory or the last settlement, the bank statements for the period, and a receipt or voucher for every payment. The form says the settlement is supported by them.
The example follows Loretta Pennington, an invented ward whose conservator was appointed 05/12/2024. Her inventory listed only a checking and a savings account. This first settlement covers 05/12/2024 to 05/12/2026, and it is due 09/09/2026.
Balance is assets less disbursements
The form lists everything received since the inventory or last settlement, including the money you started with. Take away what you paid out. The balance is carried forward to the next report. Leave out the starting balance and the result will not match the accounts.
| Balance carried from the inventory | $15,714.60 |
|---|---|
| Social Security | 33,732.00 |
| Pension | 7,572.00 |
| Savings interest | 188.42 |
| Total assets received | $57,207.02 |
| Total disbursements made | 40,868.75 |
| Balance: assets less disbursements | $16,338.27 |
Where the figures came from
| Checking, from the inventory | $3,214.60 |
|---|---|
| Savings, from the inventory | 12,500.00 |
| Social Security, first year, average $1,388.00 × 12 | 16,656.00 |
| Social Security, second year, average $1,423.00 × 12 | 17,076.00 |
| Pension, $315.50 × 24 | 7,572.00 |
| Savings interest | 188.42 |
| Assets received | $57,207.02 |
| Personal care home, $1,400.00 × 24 | 33,600.00 |
|---|---|
| Medicare supplement, $185.00 × 24 | 4,440.00 |
| Pharmacy | 842.35 |
| Clothing and personal needs | 1,286.40 |
| Bond premium, $125.00 × 2 | 250.00 |
| Tax preparer, $225.00 × 2 | 450.00 |
| Disbursements | $40,868.75 |
| Checking | 3,649.85 |
|---|---|
| Savings | 12,688.42 |
| Balance | $16,338.27 |
The form has six asset lines and seven disbursement lines. Attach a sheet for more.
Every two years, or every year
The statute says “biennially within one hundred twenty (120) days after the anniversary date” of appointment. KRS 387.710(2) (opens in a new tab) The Clerks’ Manual reads that as a settlement every two years. §30.9 (opens in a new tab)
The notice printed on AOC-856 says to file one year after appointment and yearly after that, or every two years for a net estate of $5,000.00 or less. That is the rule for a minor’s guardian. A court may also order a settlement at any time, so follow your order where it sets a date. KRS 395.610(4), (8) (opens in a new tab)
Loretta’s order sets none, so her first settlement follows the Clerks’ Manual. It is due 120 days after her second anniversary.
What the form leaves out
The statute’s report covers four things the form has no place for. Attach them. KRS 387.710(2) (opens in a new tab)
- The ward’s present personal status.
- Whether the conservatorship should continue or end.
- Whether its powers should change.
- The property you hold, and how it is invested.
The form asks for your plan for preserving and maintaining the estate, and says to skip it when the net estate is $5,000.00 or less. That exemption is the minors’ rule. For an adult, the statute asks for a plan in every report, so Loretta’s is filled in. KRS 387.710(2)(a) (opens in a new tab)
Common mistakes
A commission over the cap
Your commission can be up to 6% of the income you collect. On top of that you choose one: 0.3% a year of the property’s market value, or up to 6% of principal distributed. Show it on the settlement. KRS 387.760(2) (opens in a new tab)
A payment with no voucher
Attach a receipt or voucher for each disbursement. The judge can ask for any other record. KRS 387.710(2)(b) (opens in a new tab)
A small estate may file less. With no real property and personal property of $2,500.00 or less in any year, an informal report of the ward’s account and its balance may be filed instead, unless the court orders a detailed account. KRS 387.710(2)(c) (opens in a new tab)
After you file
The clerk charges no fee to file a settlement. Clerks’ Accounting Manual, rev. July 2026 (opens in a new tab)
The judge reviews it, and the clerk sets a hearing. Exceptions must be filed before the hearing. With none, the court approves the settlement. KRS 395.620 (opens in a new tab) to 395.630 (opens in a new tab)
The last settlement is this form with Final ticked. File it at once when the ward dies, when the conservatorship ends, or when you resign or are removed. It also goes to the former ward, your successor, or, if the ward died, her personal representative. KRS 387.710(3) (opens in a new tab)
The final settlement lists unpaid creditors with allowed claims and those whose claims were disallowed. It says who received the balance, with their receipt attached. Its approval discharges you and releases your surety. KRS 387.710(3) (opens in a new tab)
Sources
- AOC-856, Periodic/Final Settlement (opens in a new tab), Kentucky Court of Justice
- KRS 387.710 (opens in a new tab), the biennial report, and the final account
- KRS 387.175 (opens in a new tab), a minor’s yearly settlement
- KRS 395.610 (opens in a new tab), settlements ordered by the court
- Circuit Court Clerks’ Manual (opens in a new tab), §30.9, disability inventories and settlements
- Supreme Court Order 2023-39 (opens in a new tab), mandatory eFiling for attorneys
Also for Kentucky: AOC-855, 60 Day Inventory or Supplemental Inventory
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