Detailed Answer
Step 1: Appoint a Personal Representative
After the decedent’s death, an interested person files a petition with the probate court to appoint a personal representative. Under KRS 395.030, the court issues letters testamentary or letters of administration, granting authority to manage the estate.
Step 2: Locate Estate Assets
Gather financial records, titles, deeds, and digital account information to identify all assets. Common estate assets include:
- Real property (homes, land)
- Bank, investment, and retirement accounts
- Life insurance proceeds with the estate as beneficiary
- Personal property (vehicles, jewelry, collectibles)
- Digital assets (online accounts, cryptocurrencies)
Step 3: Inventory and Appraisal
Within three months of appointment, the personal representative must file an inventory of assets and their fair market values with the probate court in accordance with KRS 395.070. Include descriptions and estimated values.
Step 4: Give Notice to Creditors
Publish a notice to creditors in a local newspaper and mail written notice to known creditors per KRS 424.130 and KRS 395.310. Creditors have six months from the date of first publication to file claims.
Step 5: Pay Debts, Taxes, and Expenses
Review each creditor’s claim for validity. Pay funeral expenses, administration costs, priority debts, and other claims in the order set by KRS 395.300. File tax returns and pay any estate taxes or final income taxes due.
Step 6: Prepare Final Accounting and Petition for Distribution
Compile a final accounting detailing all estate receipts, disbursements, and the balance available for distribution. File this accounting with the court and file a petition for distribution under KRS 395.200. Notify beneficiaries of the proposed distribution.
Step 7: Distribute Assets and Close the Estate
Upon court approval, distribute the remaining assets to beneficiaries according to the will or Kentucky’s intestacy rules (KRS Chapter 391). Obtain beneficiary receipts or releases. Finally, file a closing statement and petition to discharge the personal representative and close the probate.
Disclaimer: This article provides general information on Kentucky probate procedures and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Helpful Hints
- Maintain organized digital and paper files for all estate documents.
- Send creditor notices via certified mail to establish proof of service.
- Obtain professional appraisals for high-value or unusual assets.
- Track the six-month deadline for creditor claims to avoid missing valid debts.
- Keep beneficiaries informed to reduce disputes and delays.