Detailed Answer
When someone passes away in Kentucky, an executor or administrator settles their estate. Several factors influence the total cost of this process. Understanding these costs helps you plan and avoid surprises.
1. Size and Complexity of the Estate
Larger estates involve more assets—real estate, investments, retirement accounts, business interests—and require detailed accounting. Executors must track each asset, value it, and manage distributions. Complex assets, such as closely held businesses or foreign property, add appraisal and administrative time.
2. Fiduciary (Executor) Fees
Kentucky law caps executor and administrator commissions under KRS 395.035. Current rates are:
- 5% on the first $10,000 of estate value
- 3% on the next $40,000
- 2% on the next $150,000
- 1% on the next $200,000
- 0.5% on amounts over $400,000
3. Attorney’s Fees
Courts approve “reasonable” attorney’s fees based on time spent, complexity, and local market rates. Kentucky has no set hourly rate. You and your attorney can agree to an hourly fee or a flat fee. The court must review and allow fees before payment.
4. Appraisal and Inventory Costs
Executors must file an inventory of estate assets. Under KRS 382.280, you need professional appraisals for real estate, valuables, and business interests. Each appraisal can cost several hundred dollars or more, depending on the item.
5. Bond Premiums
If the will doesn’t waive bond or a court orders one, the executor must secure a fiduciary bond under KRS 395.370. Bond premiums run 0.5%–3% of the bond amount annually, based on the executor’s credit and bond size.
6. Court Filing and Clerk Fees
Kentucky court clerks charge fees for probate filings. Typical costs include:
- Probate petition: $40–$60
- Will admission: $25–$35
- Inventory filing: $20–$30
- Final settlement: $40–$60
Check your county clerk’s fee schedule for exact amounts.
7. Notice and Publication Costs
Executors must notify heirs and publish a creditor notice in a local newspaper. Publication costs vary by paper but typically range from $50 to $200.
8. Federal Estate Tax Preparation
Kentucky repealed its estate tax. However, federal estate taxes apply if the gross estate exceeds the federal exemption ($12.92 million for 2023). Preparing and filing Form 706 can cost $1,000–$5,000 in professional fees.
9. Miscellaneous Administrative Costs
Other costs include postage, certified copies of death certificates ($10–$15 each), document notarization, courier services, and record storage.
Disclaimer
This article provides general information on Kentucky estate administration. It does not offer legal advice. For guidance on your unique situation, consult a qualified attorney.
Helpful Hints
- Gather all asset records before filing for probate.
- Request a fee schedule from your county clerk’s office.
- Discuss fee structures with your attorney up front.
- Shop around for appraisers—compare rates and credentials.
- Keep detailed time logs and expense receipts.
- Review published fee tables under Chapter 395 for fiduciary costs.