Wills, Trusts and Estate Planning in Central Kentucky

Whether you hold significant assets or are building a modest foundation for your family, creating a proactive estate plan is essential. Estate planning goes far beyond preparing for the end of life—it protects your independence and wishes, safeguards your assets during your lifetime, and spares your loved ones from expensive, stressful court disputes later.

At Rosenbaum & Thompson, PLLC, our attorneys guide individuals and families across Central Kentucky through every stage of estate planning, trust creation, and probate administration.

How Does the Probate Process Work in Kentucky District Courts?

Probate is the court-supervised legal process that transfers legal title of a deceased person’s (the decedent’s) assets to their lawful heirs or named beneficiaries. In Kentucky, routine probate matters are handled exclusively by the District Court in the county where the deceased permanently resided (such as Fayette District Court, Mercer District Court, Jessamine District Court, Madison District Court, Boyle District Court, etc.). We recommend you have legal counsel assist you with the process but here is a big picture step by step process of what to expect:

Step 1: Initiating Probate

The probate process often begins by filing a Petition for Probate of Will / Appointment of Executor using standardized Form AOC-805 with the District Court Clerk.

OR “Dispensing with Administration” for Small Estates

Under KRS 395.455, if the value of the estate does not exceed $30,000 (or the preferred claim amount for funeral expenses and statutory spousal/child exemptions under KRS 391.030), the surviving spouse or preferred creditor can petition the District Court to Dispense with Administration (using Form AOC-830). This bypasses formal probate entirely.

Step 2: Guiding the case through probate

Under KRS 396.011 the probate case must remain open for a minimum of six (6) months. During this time, the administrator or executor must disclose all assets and satisfy any and all creditors to the estate. Probate is often useful as a way to dispense with debts the decedent accumulated during their lifetime. Under KRS 424.340 and KRS 396.011, notice to creditors is published in a local newspaper of general circulation (such as the Lexington Herald-Leader for Fayette County filings or the Advocate for Boyle County). Having a local attorney handle your probating your estate can often result in a negotiated settlement of those claims.

Step 3: Settlement of the Estate

Under KRS 395.605 an estate can be settled out of court with the consent of the relevant heirs at law and/or next of kin. Having a local attorney assist you with this can save you time and have your estate property distributed quickly and efficiently.

What Property Can Avoid Probate in Kentucky?

Not all property is required to go through court-supervised probate. Kentucky’s probate rules are found in Kentucky Revised Statutes 391 through 397. These laws and rules were amended by the legislature in Frankfort in July 2026. Through strategic estate planning, many assets can pass directly to your beneficiaries immediately upon death without District Court intervention:

Living Trusts: Placing real estate, personal property, or financial accounts into a revocable or irrevocable trust keeps those assets out of probate, preserving privacy and eliminating court delays.
Joint Tenancy with Right of Survivorship: Real estate or bank accounts titled jointly with survivorship rights pass automatically to the surviving owner.
Beneficiary Designations: Life insurance policies, 401(k)s, IRAs, and annuities with named beneficiaries can transfer outside of probate.
Payable-on-Death (POD) & Transfer-on-Death (TOD) Accounts: Bank accounts and registered securities designated as POD or TOD pass directly to designated individuals upon presentation of a death certificate.

What Happens if Someone Dies Without a Will in Kentucky?

If a person dies without a valid will (dying “intestate”), their estate must still go through the county District Court. However, rather than following personal wishes, the court appoints an Administrator and distributes the estate strictly according to Kentucky Intestacy Laws (KRS Chapter 391).

Under Kentucky law, statutory priorities dictate how surplus property descends to surviving spouses, children, parents, or siblings. Dying intestate can lead to unintended consequences, higher court costs, and administrative burdens—all of which are easily avoided by executing a valid, legally binding Kentucky will.

What Makes a Will Legally Binding in Kentucky?

Under KRS 394.040, a valid Kentucky will must be in writing and signed by the testator (or signed by another person at the testator’s direction and in their presence).

Execution Requirements: Unless the will is written entirely in the testator’s own handwriting (a holographic will) and provable, the testator’s signature must be made or acknowledged in the presence of at least two (2) credible witnesses, who must also sign the document in the presence of the testator and each other.
The Subscription Rule: Under KRS 446.060, the testator and witnesses must sign at the very end or close of the document to be legally enforceable.
Self-Proving Affidavits: Under KRS 394.225, adding a notarized self-proving affidavit at execution allows the court to admit the will to probate without requiring witness testimony after death, streamlining approval in local courts.

How Are Estate Creditors and Debts Handled Under Kentucky Law?

As part of the Kentucky probate process, creditors are notified of the decedent’s passing and must formally present claims for outstanding debts within strict statutory deadlines (governed by KRS Chapter 396).

Approved Claims: Valid debts, medical bills, and administrative expenses are paid out of the estate’s liquid assets or through the court-authorized sale of estate property.
Insolvent Estates: If estate liabilities exceed available assets, Kentucky statutory framework dictates the priority order in which creditors are paid. Claims within lower-priority classes may be paid on a prorated basis or discharged.

What Taxes Apply to Kentucky Estates and Beneficiaries?

Tax obligations following a death involve distinct state and federal considerations:

Kentucky Inheritance Tax KRS Chapter 140: Kentucky does not impose a state estate tax, but it does maintain a state inheritance tax. Close relatives—known as Class A beneficiaries (spouses, children, grandchildren, parents, and siblings)—are 100% exempt from Kentucky inheritance tax. Tax obligations generally apply only to more distant relatives or non-family beneficiaries (Class B and C).
Federal Estate & Income Taxes: Federal estate tax applies only to ultra-high-net-worth estates exceeding high federal exemption thresholds. However, the personal representative remains responsible for filing the decedent’s final Form 1040 income tax return and, if applicable, fiduciary income tax returns (Form 1041) for income generated by the estate during administration.

Who Manages Estate Administration in Kentucky?

The court-appointed personal representative—an Executor named in a will or an Administrator appointed for an intestate estate—is legally responsible for managing the probate process under District Court oversight.

Responsibilities include filing a verified asset inventory within 60 days of appointment, managing estate accounts, communicating with creditors, and preparing a final accounting for court approval before distributing assets to beneficiaries.

Work with Experienced Central Kentucky Estate & Probate Attorneys

Navigating estate planning or administering a loved one’s estate requires knowledgeable local guidance. The attorneys at Rosenbaum & Thompson, PLLC provide personalized, direct attorney representation tailored to your unique family structure and financial goals.

Call Rosenbaum & Thompson today at 859-259-1321 or contact us online to schedule a consultation regarding your Kentucky estate planning, trust, or probate needs.

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