Kentucky — How Remaining Estate Funds Are Distributed to Children (FAQ)

Detailed Answer — How distribution to children works under Kentucky law

This explains what typically happens after an estate’s debts, taxes, and administrative expenses are paid and the remaining cash or assets are ready to be distributed to the decedent’s children. This is an educational summary of common probate practice in Kentucky, not legal advice.

Who controls distribution?

A personal representative (called an executor if named in a will, or an administrator if appointed by the court when there is no valid will) is responsible for collecting assets, paying claims and taxes, and making distributions. The personal representative acts under the supervision of the probate court until the estate is closed.

Primary legal rules that determine who gets what

• If the decedent left a valid will, distribution follows the will’s terms. The personal representative must carry out the will subject to court approval and any creditor or tax obligations.
• If there is no valid will (intestate), Kentucky’s intestacy rules determine distribution among surviving relatives — typically the spouse and children are primary heirs. The personal representative distributes the remainder according to state intestacy statutes (see Kentucky Revised Statutes and probate guidance at the Kentucky Legislature and Kentucky Court of Justice: https://apps.legislature.ky.gov/law/statutes/ and https://courts.ky.gov).

Step-by-step process for distributing remaining funds to children

1. Complete the estate accounting. The personal representative compiles an inventory of assets, records of payments for funeral costs, creditor claims, attorney and court costs, taxes, and any other administrative expenses. This accounting shows the estate’s net distributable estate.
2. Resolve creditor claims and taxes. Kentucky law requires notice to creditors and payment (or court-ordered allowance or rejection) of valid claims. Income taxes and any applicable federal estate tax or state taxes must be filed and paid before distribution. Keep records of tax filings and receipts.
3. Obtain court approval where required. In many estates the personal representative files a final accounting and a petition (or statement) asking the probate court to approve the accounting and authorize distribution. The court may require notice to beneficiaries and an opportunity to object. Once approved, the court typically issues a signed order authorizing distribution.
4. Handle special categories of property. Some assets pass outside probate (e.g., joint tenancy property, assets with beneficiary designations, payable-on-death accounts, life insurance proceeds). Those assets generally do not become part of the estate distributable by the personal representative.
5. Distribute to children according to the will or intestacy rules.
   • If the will directs distribution to the children, the personal representative follows the will’s instructions exactly (for example, equal shares, percentage, or a trust for a child).
   • If intestate, children usually share the remainder — typically in equal shares per stirpes (meaning that if a child predeceased the decedent, that child’s descendants may take that child’s share). The exact allocation is governed by Kentucky’s intestacy statutes; your county clerk or probate court can point to the exact statutory language and local forms (see Kentucky Revised Statutes at https://apps.legislature.ky.gov/law/statutes/).
6. Document distributions and obtain receipts/releases. When funds or assets are delivered, the personal representative gets signed receipts or releases from the beneficiaries acknowledging receipt. These records protect the personal representative from later claims.
7. Close the estate. After distribution and filing the required documentation with the court (often a final accounting and a petition for discharge), the court will discharge the personal representative and close the estate file.

Special situations affecting children’s distributions

• Minor children: Money payable to minors typically cannot be turned over directly to a child under the age of majority. The options include (a) creating a testamentary trust in the will, (b) placing funds in a guardianship account managed by a court-appointed guardian, or (c) using a custodial transfer under state custodial statutes (such as the Uniform Transfers to Minors Act) where available. The personal representative must follow court rules for handling minor beneficiaries.
• Children with special needs: Direct distribution can affect public benefits. A special needs trust or other planning may be necessary to preserve benefits; consult counsel before distributing funds to a beneficiary receiving means-tested public benefits.
• Predeceased child with descendants: Kentucky usually applies representation rules so the deceased child’s children may inherit that share. The exact mechanism and shares are governed by statute and court interpretation.
• Disputes and challenges: Beneficiaries can object to the accounting, the validity of the will, or the actions of the personal representative. If an objection is filed, distribution may be paused until the dispute resolves—either by agreement, mediation, or court decision.

Typical timeline

Simple estates that have few assets and no disputes often complete administration and distribution in several months. Complex estates, significant creditor claims, federal estate tax filings, or litigation can extend the process to a year or longer.

Where to look in Kentucky law and court resources

Key resources for statutory and procedural rules include the Kentucky Revised Statutes and the Kentucky Court of Justice (probate rules, local forms, and clerk contact information). For statute text and chapter listings, see the official Kentucky Legislature statutes site: https://apps.legislature.ky.gov/law/statutes/. For probate rules, forms, and clerk contacts, begin at the Kentucky Court of Justice main site: https://courts.ky.gov.

Important: This summary does not cite a specific statute number because probate practice can involve multiple KRS chapters (intestacy, fiduciary duties, notice to creditors, guardianship/custodianships). If you need a statute citation for a particular question (for example, how intestate shares are allocated between spouse and children, or how to publish creditor notice), the probate clerk or an attorney can point you to the exact KRS sections and local rules that apply.

Disclaimer

This information is educational only and does not constitute legal advice. The law changes and every estate has unique facts. For legal advice about your situation, contact a licensed Kentucky attorney or the probate clerk in the county where the decedent lived.

Helpful Hints

• Get an Employer Identification Number (EIN) for the estate from the IRS before opening an estate bank account.
• Keep meticulous records: copies of paid bills, checks, invoices, tax returns, and the inventory. The court and beneficiaries will expect detailed accounting.
• Notify beneficiaries in writing and provide regular updates; written communication reduces misunderstandings and objections.
• Ask the probate clerk early whether your estate qualifies for any simplified or small‑estate procedure — that can speed distribution if available.
• If a beneficiary is a minor or receives public benefits, seek court guidance or legal advice before distributing funds directly to that person.
• Obtain signed receipts/releases from beneficiaries when you distribute assets; keep originals in the estate file.
• If there is any risk of dispute, consider obtaining court approval of the final accounting and distribution order rather than relying solely on beneficiary waivers.
• Consider hiring an attorney experienced in Kentucky probate if the estate is sizeable, taxes are complicated, or beneficiaries are likely to contest distributions.