{"id":373577,"date":"2016-04-11T01:22:34","date_gmt":"2016-04-11T06:22:34","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/state\/kentucky-law\/kentucky-probate-and-estate-tax-laws.html"},"modified":"2018-02-22T12:23:47","modified_gmt":"2018-02-22T17:23:47","slug":"kentucky-probate-and-estate-tax-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/kentucky-law\/kentucky-probate-and-estate-tax-laws.html","title":{"rendered":"Kentucky Probate and Estate Tax Laws"},"content":{"rendered":"\n<div class=\"wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n    \n    <div class=\"fl-page-articles fl-section-main fl-section-main-full-width\">\n        <h1 class=\"fl-no-margin-top\">Kentucky Probate and Estate Tax Laws<\/h1>\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    <p><i>Created by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw&#8217;s team<\/a> of legal writers and editors<\/i><\/p>\n\n                | Last updated\n        <time>\n                            February 22, 2018\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n<p>When someone dies, their property is distributed to their heirs. If a court of law helps distribute the deceased&#8217;s property, the process that the estate goes through is called <a href=\"https:\/\/www.findlaw.com\/estate\/probate\/the-probate-basics.html\">probate<\/a>. The main idea behind the probate process is to distribute the estate according to the deceased&#8217;s wishes while also paying any applicable debts and taxes. The Kentucky probate process basically involves <a href=\"http:\/\/www.dklaw.com\/Articles\/PDF\/TSH_Probate.pdf\" target=\"_blank\" rel=\"noopener\">three steps<\/a>:<\/p>\n<ul>\n<li><u>Step 1<\/u>: Filing the Petition<ul style=\"list-style-type: circle;\">\n<li>A petition (along with a filing fee) must be filed with the district court clerk in the county where the decedent lived. If the deceased died with a valid will then the original will must also be submitted.<\/li>\n<\/ul>\n<\/li>\n<li><u>Step 2<\/u>: Inventory<ul style=\"list-style-type: circle;\">\n<li>The executor of the will (or personal representative) must file an inventory of the deceased&#8217;s estate within two months.<\/li>\n<\/ul>\n<\/li>\n<li><u>Step 3<\/u>: The Final Settlement<ul style=\"list-style-type: circle;\">\n<li>The executor of the will must file an accounting of all receipts and disbursements that relate to the estate.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>After all debts, claims, and taxes owed by the estate are paid off, the remaining estate passes to the deceased&#8217;s heirs. If the deceased died without a will (or <a href=\"https:\/\/dictionary.findlaw.com\/definition\/intestate.html\" target=\"_blank\" rel=\"noopener\">intestate<\/a>) then the remaining property passes based on Kentucky&#8217;s succession laws. The chart below provides a quick overview of Kentucky&#8217;s order of succession.<\/p>\n<table cellpadding=\"0\" border=\"1\" cellspacing=\"0\">\n<tbody><tr><td style=\"width: 115px;\"><p><b>Code Section <\/b><\/p>\n<\/td>\n<td style=\"width: 475px;\">Kentucky Revised Statute section <a href=\"http:\/\/www.lrc.ky.gov\/statutes\/statute.aspx?id=36130\" target=\"_blank\" rel=\"noopener\">391.010<\/a>, <a href=\"http:\/\/www.lrc.ky.gov\/statutes\/statute.aspx?id=36132\" target=\"_blank\" rel=\"noopener\">391.030<\/a> &amp; <a href=\"http:\/\/www.lrc.ky.gov\/statutes\/statute.aspx?id=36175\" target=\"_blank\" rel=\"noopener\">392.020<\/a>: <b>Descent of Real Estate and Personal Property<\/b><\/td>\n<\/tr><tr><td style=\"width: 115px;\"><p><b>Surviving Spouse Share<\/b><\/p>\n<\/td>\n<td style=\"width: 475px;\">Generally, if the deceased leaves behind a surviving spouse then the spouse receives half of the deceased&#8217;s estate. The remaining half of the estate passes according to the order of inheritance below.<\/td>\n<\/tr><tr><td style=\"width: 115px;\"><p><b>Order of Inheritance<\/b><\/p>\n<\/td>\n<td style=\"width: 475px;\">The court will look at the following levels of kin in this order until someone is alive to inherit the remaining half of the deceased&#8217;s estate:<ul>\n<li>Deceased&#8217;s children and their descendants, if none then<\/li>\n<li>Deceased&#8217;s father and mother, if neither are living then<\/li>\n<li>Deceased&#8217;s brothers and sisters and their descendants, if none then<\/li>\n<li>The deceased&#8217;s husband or wife, if none surviving then<\/li>\n<li>Deceased&#8217;s grandparents, if none then<\/li>\n<li>Deceased&#8217;s aunts and uncles and their descendants, if none then<\/li>\n<li>Deceased&#8217;s great-grandparents, if none then<\/li>\n<li>The brothers and sisters of the deceased&#8217;s grandparents, and so on passing to the nearest lineal ancestors and their descendants<\/li>\n<\/ul>\n<\/td>\n<\/tr><\/tbody><\/table>\n<h2>Non-Probate Property<\/h2>\n<p>Not all property in Kentucky passes through probate. For example, property that passes at death to a named beneficiary (ex. payable on death accounts, transfer on death accounts, life insurance policies, or IRAs) and property that is held in a <a href=\"https:\/\/dictionary.findlaw.com\/definition\/joint-tenancy-with-rights-of-survivorship-.html\" target=\"_blank\" rel=\"noopener\">joint-tenancy<\/a> is non-probate property and passes outside of probate. Because probate can be time consuming it may be advisable to avoid the probate process where possible.<\/p>\n<h2>Kentucky Doesn&#8217;t Collect an Estate Tax<\/h2>\n<p>Both federal and state governments have the power to impose an <a href=\"https:\/\/www.findlaw.com\/estate\/planning-an-estate\/estate-tax-laws.html\">estate tax<\/a>, which is a tax on property transferred at death. Kentucky previously collected an estate tax but hasn&#8217;t since January 1<sup>st<\/sup>, 2005. The estate tax (see Kentucky Revised Statutes <a href=\"http:\/\/www.lrc.ky.gov\/statutes\/statute.aspx?id=28990\" target=\"_blank\" rel=\"noopener\">section 140.130<\/a>) is tied to a federal tax credit that became obsolete in 2001 when the federal government passed the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), thereby essentially eliminating Kentucky&#8217;s estate tax.<\/p>\n<h2>Additional Resources<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.findlaw.com\/estate\/probate\/avoiding-the-probate-process.html\">Avoiding the Probate Process<\/a><\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/forms\/resources\/estate-planning\/last-will-and-testament\/what-not-to-include-when-making-a-will.html\">What Not to Include When Making a Will<\/a><\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/estate.html\">Estate Planning<\/a><\/li>\n<\/ul>\n<h2>Get Legal Help with Your Kentucky Probate and Estate Tax Questions<\/h2>\n<p>People typically deal with probate and estate tax issues after a close relative or loved one has passed away. Navigating the complexities of the law while grieving and juggling other responsibilities can be downright nerve-racking. If you have questions related to Kentucky probate and estate taxes, it&#8217;s best you contact a local <a href=\"https:\/\/lawyers.findlaw.com\/taxation-law\/kentucky\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">tax lawyer<\/a> who can answer your questions and guide you through the process.<\/p>\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg 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