Detailed Answer
When you administer an estate in Kentucky, you must track all assets and settle valid debts before distribution. The net estate equals total probate assets minus debts, taxes, and administrative expenses.
1. Inventory Probate and Nonprobate Assets
The personal representative must prepare and file an inventory of the decedent’s assets with the probate court within 30 days. See KRS 396.060. Include real estate, bank accounts, investments, business interests, and personal property. Exclude nonprobate assets such as jointly held property, pay-on-death accounts, and life insurance proceeds.
2. Notify Creditors and Collect Claims
Publish notice to creditors in a local newspaper and mail notice to known creditors. Kentucky gives creditors six months to file claims. See KRS 395.040.
3. Review and Pay Valid Debts and Expenses
The personal representative reviews each claim. Pay valid debts, including funeral costs, taxes, and administrative expenses. Kentucky law prioritizes payments in this order: expenses of administration, funeral expenses, taxes, secured claims, and unsecured claims.
4. File Final Settlement
After paying debts and fees, file a final settlement with the court and request approval. Final accounting must list all assets collected, debts paid, and remaining property ready for distribution. See KRS 396.140.
5. Calculate Remaining Estate
Subtract total debts, taxes, and fees from the gross probate estate. The balance equals the net estate available to heirs or beneficiaries under the will or Kentucky’s intestacy statutes.
Disclaimer: This article does not offer legal advice. It provides general information on Kentucky estate administration. For legal advice, consult a qualified attorney.
Helpful Hints
- Retain copies of all inventories, notices, and receipts.
- Separate probate assets from nonprobate assets early.
- Keep deadlines in mind: inventory within 30 days; creditor claims within six months.
- Consult a probate court clerk for local filing procedures and fees.
- Consider professional appraisals for real estate and valuable personal property.