Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
1. Appointment of a Personal Representative
In Kentucky probate, the court appoints a personal representative (PR)—sometimes called an executor or administrator—to manage the estate. The PR must follow duties outlined in KRS 395.025. This includes safeguarding assets and handling communications with beneficiaries and creditors.
2. Gathering Assets and Opening an Estate Account
Once appointed, the PR locates all estate assets—bank accounts, real estate, investments—and prepares an inventory. State law requires the PR to open a separate estate bank account. Deposit all incoming funds (rents, dividends, refunds) into this account to ensure clear tracking of estate monies.
3. Notifying Creditors and Claim Period
The PR must publish notice to creditors in a local newspaper and mail individual notices to known creditors within one month of appointment. Under KRS 395.355, creditors have six months from the first publication to submit claims against the estate. This process helps identify all outstanding debts and ongoing obligations.
4. Paying Ongoing Bills and Estate Expenses
During probate, everyday bills—mortgage payments, utility bills, property taxes, and insurance premiums—must continue to avoid penalties or loss of assets. The PR can use estate funds to pay:
- Funeral and last illness expenses
- Homeowners or vehicle insurance
- Mortgage or rent for estate property
- Utility and maintenance costs
- Estate administration costs, including court and filing fees
These payments fall under the priority system in KRS 395.373. The PR should obtain court approval for significant disbursements or follow procedures for informal settlements under KRS 395.505.
5. Bond and Court Oversight
If required by the will or the court, the PR must post a bond to protect the estate from mismanagement. The court reviews accountings and expenses before approving final distribution.
6. Final Accounting and Closing the Estate
After paying all valid claims and expenses, the PR prepares a final accounting for the court. Once approved, the PR distributes the remaining assets to beneficiaries and obtains a court order closing the estate.
Helpful Hints
- Keep detailed records of every receipt and payment.
- Use a dedicated estate account to separate personal and estate funds.
- Track publication dates and deadlines for creditor claims.
- Maintain insurance on real estate and vehicles through probate.
- Notify utility companies to transfer services to the estate account.
- Consult an attorney if estate assets are complex or contested.