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1 Overview — what makes Kentucky probate different

Kentucky probate is governed primarily by KRS Chapters 391–397 (Descent, Succession, Wills, Administration of Estates) and KRS Chapter 140 (Inheritance Tax). The Kentucky Legislature's full KRS is available at apps.legislature.ky.gov. Probate jurisdiction belongs to the District Court in each of Kentucky's 120 counties — unlike most states where probate is handled by circuit or superior courts. Six features distinguish Kentucky from neighboring states.

First: Inheritance tax (KRS Chapter 140). Kentucky is one of only six states (along with Iowa, Maryland, Nebraska, New Jersey, and Pennsylvania) that imposes an inheritance tax — a tax paid by the beneficiary, not the estate. The tax depends entirely on who receives the property. Close family members (Class A: spouse, children, parents, siblings, grandchildren) pay nothing. More distant relatives and non-family (Class B and C) pay 4%–16%. This catches families off guard, particularly when a beloved aunt or uncle leaves a bequest to a niece or nephew who expected to receive it tax-free.

Second: Dower and curtesy (KRS 392.020). Kentucky retains these ancient English common law concepts — now applied gender-neutrally — that protect the surviving spouse's interest in real property. When a person dies intestate, the surviving spouse receives half of surplus personal property and a fee interest in half of real estate owned at death. They also receive a life estate in one-third of real estate owned during the marriage but disposed of before death. In a testate situation, the surviving spouse can elect to take a statutory share instead of accepting the will's provisions.

Third: Dispense with Administration (KRS 395.455 and 395.470). Kentucky has two distinct procedures to avoid full probate administration — a court-supervised petition for small estates (§ 395.455), and a complete no-court option for intestate estates with no debts (§ 395.470) that any family can use regardless of estate size if all beneficiaries agree in writing.

Fourth: SB 50 (2026) — intestate succession changes effective July 15, 2026. Kentucky passed major legislation amending intestate succession laws. The new laws (Acts Ch. 134, effective July 15, 2026) modify who inherits and in what proportions. For deaths after July 15, 2026, the new intestate rules apply. Check apps.legislature.ky.gov and the current KRS for the updated intestacy framework.

Fifth: Half-blood relatives inherit only half. Under KRS 391.050, "half" relatives (half-siblings, half-nieces, half-nephews) inherit only half the share that full-blood relatives of the same degree receive. This unique rule is critical for blended families and can dramatically change the distribution in intestate estates.

Sixth: Two witnesses must sign in each other's presence. Kentucky's will execution requirement (KRS 394.040) requires two witnesses who sign in the presence of the testator AND in the presence of each other. This "mutual presence" requirement is stricter than most states, which only require witnesses to sign in the testator's presence.

SB 50 (2026): Kentucky intestate succession laws changed effective July 15, 2026
Kentucky passed SB 50 (Acts Ch. 134) in April 2026, amending intestate succession rules. The amended laws take effect July 15, 2026. For deaths on or after July 15, 2026, the new intestate succession provisions apply. For deaths before July 15, 2026, the prior law applies. The full text of Acts Ch. 134 is available on the Kentucky Legislature website. Consult a Kentucky probate attorney for how SB 50 affects your specific situation. The information in this guide reflects both the pre-July 15 and post-July 15 regimes where possible.

Kentucky probate at a glance

TopicKentucky ruleAuthority
Governing lawKRS Chapters 391–397 (succession, wills, estates); KRS Chapter 140 (inheritance tax); Full KRS at apps.legislature.ky.govKRS 391.010 et seq.
Probate courtDistrict Court in each of 120 counties; not Circuit Court. kycourts.gov district court finderKRS 395.030
Inheritance taxYes — one of only 6 states. Class A (spouse, children, parents, siblings, grandchildren): fully exempt. Class B (nieces, nephews, in-laws, aunts, uncles, great-grandchildren): $1,000 exempt, then 4%–16%. Class C (all others): $500 exempt, then 6%–16%.KRS 140.010–140.230; KY DOR inheritance tax page
Inheritance tax return due18 months from date of death; 5% discount for payment within 9 months; installment plan available if tax > $5,000KRS 140.160
KY estate taxNone — eliminated effective January 1, 2005KRS 140.010 (estate tax repealed)
Dispense with Administration — smallPetition to District Court when estate's personal property ≤ exempt property allowances; surviving spouse or preferred creditor may petition; court order transfers assets (Form AOC-830)KRS 395.455
Dispense with Administration — completeIf person dies intestate with NO debts, ALL beneficiaries may agree in writing to dispense with administration entirely — no court, no PR appointed, any estate sizeKRS 395.470
Dower and curtesySurviving spouse receives ½ of surplus personal property (intestate) + fee in ½ of real estate owned at death + life estate in 1/3 of real estate owned during marriage but disposed of before deathKRS 392.020
Elective share (testate)Surviving spouse may elect to take 1/3 of net probate estate (if children survive) or 1/2 (if no children) instead of will's provisions, if less favorableKRS 392.080
Will witnessesTwo witnesses signing in the presence of the testator AND in the presence of each other (mutual presence requirement; stricter than most states)KRS 394.040
Holographic willsValid — entirely in testator's handwriting, signed; no witnesses requiredKRS 394.040(2)
TOD deedsAvailable — Transfer-on-Death deeds for real property; recorded during lifetime; revocableKRS Chapter 394
Creditor period6 months from qualification (appointment) of personal representative; creditors have 6 months to present claimsKRS 396.011
Inventory deadlineWithin 2 months of appointment; filed with District CourtKRS 395.250
PR compensation cap5% of personal estate value + 5% of income collected; court may allow additional for extraordinary servicesKRS 395.150
Half-blood inheritanceHalf-relatives inherit HALF the share of full-blood relatives of the same degree (e.g., half-sibling inherits half what a full sibling would)KRS 391.050
Survivorship requirementBeneficiary must survive decedent by 5 days to inherit; simultaneous death → treated as if non-survivor predeceasedKRS 397.1002
Gifts within 3 years of deathPresumed made in contemplation of death for inheritance tax purposes; subject to KY inheritance taxKRS 140.020

2 Kentucky inheritance tax — Class A, B & C explained

Kentucky's inheritance tax is administered by the Kentucky Department of Revenue (revenue.ky.gov). The full Guide to Kentucky Inheritance and Estate Taxes (PDF, KY DOR) contains the current rate tables. The tax is paid by beneficiaries, not the estate — but the personal representative files the return (KRS 140.160) and collects the tax from those who owe it.

Class A — Fully Exempt
$0 tax
No exemption limit — completely free of KY inheritance tax
Who qualifies: Spouse, children, stepchildren, grandchildren, parents, brothers, sisters (including half-siblings), and exempt organizations (charities, religious institutions)
Class B — 4% to 16%
4%–16%
$1,000 exemption; tax on remainder
Who qualifies: Nieces, nephews, half-nieces, half-nephews, children-in-law (sons-in-law / daughters-in-law), aunts, uncles, great-grandchildren. Note: nieces/nephews by marriage and great-nieces/nephews are Class C — not Class B.
Class C — 6% to 16%
6%–16%
$500 exemption; tax on remainder
Who qualifies: All others — cousins, friends, unmarried partners, corporations, non-exempt organizations. Also: nieces/nephews by marriage, great-nieces/great-nephews.

Kentucky Inheritance Tax Calculator

KRS 140.010 et seq. · Select beneficiary class and enter inheritance amount · Rates from KY DOR Guide to Inheritance and Estate Taxes

Select beneficiary class:

Inheritance amount
$150,000
before tax
Exemption
Unlimited
Class A benefit
KY inheritance tax due
$0
Class A — exempt
Class A beneficiaries (spouse, children, parents, grandchildren, siblings) pay no Kentucky inheritance tax regardless of the amount inherited. The estate does not need to file a Kentucky inheritance tax return if all assets pass to Class A beneficiaries and no federal estate tax return is required — an Affidavit of Exemption is filed with the probate court instead. See KY DOR Guide to Inheritance and Estate Taxes (PDF) for the full rate table.
Gifts within 3 years of death are subject to Kentucky inheritance tax
Under KRS 140.020, transfers of property made by the decedent within three years prior to death are presumed to have been made in contemplation of death — and are therefore subject to Kentucky inheritance tax as if they had passed through the estate. This applies even to outright gifts that would otherwise be complete lifetime transfers. Gifts to Class B or Class C beneficiaries within the three-year window may generate unexpected inheritance tax liability. The three-year look-back does not apply to gifts to Class A (exempt) beneficiaries. Note: Kentucky HB 726 (2026 legislative session) proposed exempting Class B beneficiaries from inheritance tax for deaths on/after January 1, 2026 — check current status at legislature.ky.gov, as this had not been enacted as of this guide's June 2026 update.

Inheritance tax filing and payment

FeatureKentucky rule
When to fileIf any part of the estate passes to taxable (Class B or C) beneficiaries, or if a federal estate tax return is required, the PR must file a KY inheritance tax return
When NOT to fileIf all assets pass to Class A (exempt) beneficiaries and no federal return is required, file an Affidavit of Exemption with the probate court instead of a tax return
Return due date18 months from date of death (KRS 140.160)
Payment due date18 months from death; interest accrues after that
Early payment discount5% discount on tax owed if paid within 9 months of death (KRS 140.210)
Installment planIf tax > $5,000: 10 annual installments; first due 18 months from death; interest applies (KRS 140.222)
Filed withKentucky Department of Revenue — not with the probate court
Life insuranceLife insurance proceeds payable to a named beneficiary or trust (other than the insured's estate) are fully exempt from KY inheritance tax regardless of beneficiary class
NonresidentsReal and personal property located in Kentucky owned by nonresidents is subject to KY inheritance tax; intangible property of Kentucky residents located outside KY is also taxable

3 Dower, curtesy & surviving spouse rights

Kentucky is one of the few remaining states that explicitly retains "dower and curtesy" concepts in its statutes (KRS 392.020), now applied gender-neutrally. These rights protect the surviving spouse in ways that differ from both the intestate succession laws and will provisions.

ScenarioSurviving spouse's rightsAuthority
Intestate succession (no will) — personal property½ of surplus personal property after payment of debts, funeral expenses, and administration costsKRS 392.020; 391.030
Intestate succession — real estate owned at deathFee interest in ½ of real estate owned in fee simple at death (i.e., ½ of real estate passes to surviving spouse outright)KRS 392.020
Intestate succession — real estate owned during marriage but sold before deathLife estate in 1/3 of real estate owned during the marriage in fee simple but disposed of before death (unless survivor's right was barred)KRS 392.020
Testate (will exists) — will's provision is less favorable than statutory rightsSurviving spouse may renounce the will and elect to take statutory share: 1/3 of the net real estate + ½ of personal property if children survive; ½ of real estate + ½ of personal property if no childrenKRS 392.080
Exempt personal property allowance$15,000 from personal estate before distribution, regardless of debts (in addition to statutory share)KRS 391.030
Homestead exemption$15,000 in decedent's real property; in addition to statutory share and exempt personal propertyKRS 427.060
Dower and curtesy apply even to property transferred before death — up to 1/3 life estate
The surviving spouse's life estate in 1/3 of real estate "owned during the marriage but disposed of before death" is particularly significant. If the decedent sold a farm, gifted a property, or transferred real estate during their lifetime, the surviving spouse may still have a life estate claim on that 1/3 — unless the surviving spouse consented to the transfer or their right was otherwise barred. This is one reason Kentucky real estate conveyances routinely require both spouses to sign, even for property titled in only one spouse's name. Failure to obtain the surviving spouse's signature on a deed can create title complications that emerge at the death of the spouse who held title. For estates with significant real estate holdings or complex property transfer histories, consult a Kentucky probate attorney about potential dower/curtesy exposure.

4 Kentucky's three probate tracks

Kentucky offers three distinct paths for estate settlement. The Kentucky Courts' Guide to Basic Kentucky Probate Procedures (PDF) at kycourts.gov is the official self-help resource for families navigating the District Court system.

Dispense with Administration

Fastest · No full probate
§ 395.455: Court petition when personal property ≤ exempt allowances; Form AOC-830; court order transfers assets to surviving spouse or preferred creditor without full administration
§ 395.470: If died intestate with NO debts, all beneficiaries may agree in writing — complete bypass of probate; any estate size; no court; no PR appointed
KY Courts AOC form: AOC-830 (Petition) and AOC-830.1 (Order Dispensing)

Informal Settlement

Most common · Reduced oversight
Court maintains oversight but typically only intervenes if issues arise; most uncontested estates use informal settlement
PR appointed; Letters Testamentary or Letters of Administration issued; inventory, creditor period, and final settlement filed with court
6-month creditor period from PR qualification; 2-month inventory deadline; PR compensation 5%/5%

Formal Settlement

Highest oversight · Contested / complex
Full court supervision at each step; required for contested estates, disputed wills, complex assets, or when beneficiaries cannot agree
District Court judge approves all major decisions; most expensive and time-consuming track
Used when will is contested, heirs dispute distribution, PR accused of misconduct, or estate involves significant real estate or business interests

5 Kentucky formal probate — step by step

  1. 1

    Locate will; assess path; file will with District Court File with District Court — not Circuit Court

    Locate the will and file it with the District Court in the county where the decedent was domiciled at death. Kentucky law requires wills to be filed with the court even if probate is not required for asset transfer (KRS 394.110). Assess which path applies: Can you dispense with administration (§ 395.455 or § 395.470)? Or is full informal or formal settlement needed? Use the Kentucky Courts' court finder at kycourts.gov to locate your county's District Court. Jefferson County (Louisville) and Fayette County (Lexington) handle the highest volumes.

    Original willCertified death certificates × 6Form AOC-805 (Petition for Probate)
  2. 2

    Court appoints personal representative; issues Letters Surety bond generally required

    File Form AOC-805 (Petition for Probate of Will and Appointment of Executor) or the applicable intestate petition with the District Court. The court admits the will to probate (if self-proving under KRS 394.225, no witness testimony needed) and appoints the personal representative. Kentucky generally requires a surety bond unless waived by the will and consented to by all interested parties. The court issues Letters Testamentary (testate) or Letters of Administration (intestate). Order 6–8 certified copies — each institution needs its own.

    Form AOC-805 or applicable petitionLetters Testamentary / Letters of AdministrationSurety bond (unless waived)
  3. 3

    Publish Notice to Creditors; 6-month creditor period begins from qualification Not from publication — from qualification

    Publish Notice to Creditors in a newspaper of general circulation in the county. The 6-month creditor period runs from the qualification (appointment) date of the personal representative — not from the publication date (unlike Alabama's 6-month period from publication). This means the creditor period may already be running before publication occurs if there is any delay. Mail direct notice to all known creditors. KRS 396.011 governs creditor claims.

    Notice to Creditors (newspaper publication)Direct notice to all known creditors
  4. 4

    File inventory within 2 months — Form AOC-846 2-month deadline

    Within 2 months of appointment, file a complete inventory of all estate assets with the District Court using Form AOC-846 (KRS 395.250). Lists all personal property (managed by the PR) and, where applicable, real property subject to administration. Date-of-death fair market values required. Professional appraisals needed for real estate, business interests, and valuable personal property. The inventory value determines the PR's compensation cap (5% of personal estate value per KRS 395.150).

    Form AOC-846 (Inventory)Professional appraisalsDeadline: 2 months from appointment
  5. 5

    Address inheritance tax; file return or Affidavit of Exemption If Class B/C beneficiaries — or federal return required

    Determine whether a Kentucky inheritance tax return is required. If all assets pass to Class A (exempt) beneficiaries and no federal estate tax return is required, file an Affidavit of Exemption with the District Court — no return needed. If any assets pass to Class B or Class C beneficiaries (or a federal return is required), file a KY inheritance tax return with the Kentucky Department of Revenue. Return due: 18 months from death. For a 5% early payment discount, pay within 9 months. For the detailed rate tables, see the KY DOR Guide to Inheritance and Estate Taxes (PDF). Collect inheritance tax from Class B/C beneficiaries before or concurrent with distribution.

    KY Inheritance Tax Return (if Class B/C) — filed with KY DOR— OR — Affidavit of Exemption (if all Class A) — filed with District Court
  6. 6

    Pay debts, administer estate, distribute assets

    After the 6-month creditor period, pay valid claims in statutory priority order. File the decedent's final Kentucky income tax return (Form 740) and federal return. Distribute personal property per the will or Kentucky intestacy laws. For real property: title passes at death to devisees (testate) or heirs (intestate), subject to the PR's power of administration. Note surviving spouse's dower rights, elective share rights, exempt property allowance ($15,000), and homestead exemption ($15,000) — these take priority and must be addressed before general distribution.

  7. 7

    File settlement; obtain court order closing the estate Informal or formal settlement

    File an Informal Settlement (most common) or Formal Settlement with the District Court. The settlement details all estate transactions — assets received, debts paid, taxes filed, and distributions made. Notice to all interested parties required. The court reviews, hears any exceptions, and enters an order confirming the settlement and closing the estate. The PR is discharged from further liability after the order is entered and all distributions completed. Kentucky targets estate closure within approximately 12–18 months for uncontested estates.

    Informal or Formal SettlementNotice to interested partiesOrder confirming settlement and closing estate

6 Wills, intestate succession & probate avoidance in Kentucky

Valid wills in Kentucky

Will typeValid in Kentucky?Requirements
Attested (witnessed) willYes — standard formTestator's signature + two witnesses who sign in the testator's presence AND in the presence of each other (mutual presence requirement — stricter than most states). KRS 394.040. Self-proving affidavit (notarized, KRS 394.225) eliminates need for witness testimony at probate.
Holographic willYes — validEntirely handwritten by the testator; signed by the testator; no witnesses required. KRS 394.040(2). More difficult to admit; handwriting must be proven. Frequently challenged.
Transfer-on-Death deed (TOD deed)Available for real propertyRecorded during the owner's lifetime at the county clerk's office; revocable; takes effect at death without probate. See KRS Chapter 394 for TOD provisions.

Kentucky intestate succession (post-July 15, 2026 — SB 50)

Under amended law effective July 15, 2026 (SB 50, Acts Ch. 134), Kentucky's intestate succession rules have been updated. Before that date, the prior KRS 391.010 et seq. rules apply. Key principles under the current framework:

Surviving familyWho inherits (post-July 15, 2026)
Spouse + childrenSurviving spouse receives ½ of personal property (dower/curtesy, KRS 392.020); remaining ½ passes to children. Real estate: ½ to spouse in fee; balance as provided by law.
Spouse only (no children, no parents)Spouse inherits entire estate
No spouse; children surviveChildren inherit equally (descendants of deceased child take their parent's share per stirpes)
No spouse, no children; parents surviveParents inherit; if only one parent, that parent takes all
Half-blood relativesHalf-blood relatives inherit only HALF what a whole-blood relative of the same degree would inherit (KRS 391.050)
Survivorship requirementMust survive decedent by 5 days to inherit (KRS 397.1002)

Note: The full details of SB 50's changes to intestate succession are in Acts Ch. 134 (2026). For deaths before July 15, 2026, consult prior law under KRS 391.010 et seq. This summary reflects general principles; consult a Kentucky probate attorney for specific situations.

7 Timeline & costs

ScenarioTimelineKey driver
Dispense with Administration (§ 395.470, intestate, no debts)WeeksAll beneficiaries agree in writing; no court; no PR; any estate size
Petition to Dispense with Administration (§ 395.455)1–3 monthsCourt petition + Form AOC-830; court order authorizes transfer
Informal settlement — uncontested9–14 months6-month creditor period (from qualification) + 2-month inventory + settlement
Formal settlement12–24 monthsHigher court oversight; hearings at each stage
Jefferson County (Louisville) / Fayette County (Lexington)10–18 monthsHigher volume courts; scheduling
Inheritance tax — early paymentDue within 9 months for 5% discountPlan for tax payment separately from estate administration timeline
Contested will or PR dispute12–36+ monthsCourt hearings; potential appeal to Circuit Court and Court of Appeals
Cost itemTypical amountNotes
Court filing fees~$110–$200+Varies by county; District Court fee schedules at kycourts.gov
KY inheritance tax0% (Class A) → 4%–16% (B) → 6%–16% (C)5% early payment discount; 18-month deadline; installment available if >$5,000; revenue.ky.gov
KY estate tax$0Eliminated January 1, 2005
PR compensationUp to 5% of personal estate + 5% of incomeStatutory cap; court may approve additional for extraordinary services (KRS 395.150)
Attorney fees (standard)$2,500–$6,000Uncontested; Kentucky Bar Association referral: kybar.org/FindaLawyer
Attorney fees (inheritance tax + complex)$4,000–$15,000+Inheritance tax planning, dower analysis, contested matters
Surety bondAnnual premium varies by estate sizeGenerally required; may be waived by will + beneficiary consent

8 Key Kentucky probate forms & resources

Kentucky probate uses Administrative Office of the Courts (AOC) standardized forms. The Kentucky Court of Justice (kycourts.gov) provides the self-help guide. Inheritance tax forms and guidance are at the Kentucky Department of Revenue (revenue.ky.gov). The Kentucky Bar Association's lawyer finder at kybar.org connects families with qualified probate attorneys.

Form AOC-805 — Petition for Probate and Appointment of Executor
Opens testate estate · Admits will · District Court

Filed with the District Court to initiate probate of the will and appoint an executor (personal representative). Attach the original will. The court admits the will to probate; if the will is self-proving (notarized per KRS 394.225), no witness testimony is required. The court issues Letters Testamentary. File in the county's District Court where the decedent was domiciled — use the kycourts.gov court finder to locate the correct court.

Form AOC-830 — Petition to Dispense with Administration
Small estate · No full probate · KRS 395.455

Filed when the estate's personal property does not exceed the exempt allowances (homestead + exempt property + preferred claims) and the surviving spouse or a preferred creditor petitions the District Court. The court reviews and enters Form AOC-830.1 (Order Dispensing with Administration) — authorizing the petitioner to collect personal estate assets without appointing a full personal representative. Different from the § 395.470 complete dispense (which requires no court at all). The KY Courts probate guide (PDF) explains both procedures.

Dispense with Administration Agreement (KRS 395.470)
Intestate · No debts · All beneficiaries agree · No court

Not an official court form — a written agreement signed by ALL beneficiaries. When someone dies intestate with no outstanding debts, all beneficiaries may agree in writing to dispense with administration entirely. No court, no PR, no Letters needed. This is one of the most powerful estate planning provisions in Kentucky for debt-free intestate estates of any size. Title to assets transfers based on the agreement and applicable law. Institutions may or may not accept the agreement; a Kentucky attorney can help structure it properly. KRS 395.470.

Form AOC-846 — Inventory
2-month deadline · District Court · KRS 395.250

Filed within 2 months of the PR's appointment with the District Court. Lists all estate assets with date-of-death fair market values. Personal property (managed by the PR) is the primary content. The inventory value determines the 5%/5% PR compensation cap. Professional appraisals required for real estate, business interests, and other assets of uncertain value. The 2-month deadline is firm; extensions require court approval.

Kentucky Inheritance Tax Return (KY DOR forms)
Class B/C beneficiaries · Due 18 months · 5% early discount

Filed with the Kentucky Department of Revenue (revenue.ky.gov) when any assets pass to Class B (nieces, nephews, in-laws) or Class C (all others) beneficiaries, or when a federal estate tax return is required. Due 18 months from death; 5% discount for payment within 9 months. Installment plan (10 annual payments) if tax >$5,000. For the complete rate table, see KY DOR Guide to Inheritance and Estate Taxes (PDF). Note: KY HB 726 (2026) proposes exempting Class B; check current status at legislature.ky.gov.

Affidavit of Exemption
All Class A beneficiaries · No tax return needed · Filed with District Court

When all estate assets pass to Class A (exempt) beneficiaries (spouse, children, parents, siblings, grandchildren) AND no federal estate tax return is required, no Kentucky inheritance tax return is filed. Instead, the PR files an Affidavit of Exemption with the District Court stating that all assets pass to exempt beneficiaries under KRS 140.080 and that no Kentucky inheritance tax is due. This affidavit satisfies the requirement of KRS 395.605. It is submitted to the court as part of the final settlement. See page 1 of the KY DOR Guide to Inheritance and Estate Taxes for the form language.

9 All 120 Kentucky county District Courts

Kentucky has 120 counties — more than all but two states (Texas with 254 and Georgia with 159). Each county has a District Court with probate jurisdiction. File in the county where the decedent was domiciled at death. The Kentucky Court of Justice's court directory at kycourts.gov lists all courts with contact information. Jefferson County (Louisville) and Fayette County (Lexington) handle the highest volumes. Many eastern Kentucky counties (in the Appalachian region) and western Kentucky counties are small with limited court hours — call ahead before visiting. The Kentucky Court of Justice's Guide to Basic Kentucky Probate Procedures (PDF) is the official public resource.

Showing all 120 Kentucky counties

10 Kentucky probate — frequently asked questions

Kentucky inheritance tax depends entirely on who receives the property. Class A beneficiaries are fully exempt — they pay nothing regardless of how much they inherit. Class A includes: spouse, children (biological and adopted), stepchildren, grandchildren, parents, and brothers and sisters (including half-siblings). Notably, Kentucky includes siblings in Class A, which is unusual among inheritance-tax states. Class B beneficiaries receive a $1,000 exemption and then pay 4% to 16% on the remainder. Class B includes nieces, nephews, half-nieces, half-nephews, children-in-law (sons-in-law and daughters-in-law), aunts, uncles, and great-grandchildren. Note: nieces and nephews by marriage (not blood) are Class C. Class C beneficiaries receive only a $500 exemption and pay 6% to 16% on the remainder. Class C includes everyone not in Class A or B — cousins, friends, unmarried partners, corporations, and non-exempt organizations. For the exact rates at each inheritance amount, see the Kentucky DOR Guide to Inheritance and Estate Taxes (PDF). The Kentucky Department of Revenue's inheritance tax page at revenue.ky.gov has links to all current forms.
The complete "Dispense with Administration" under KRS 395.470 is one of Kentucky's most powerful but least-known estate settlement tools. It applies when: (1) the decedent died intestate (without a will), and (2) the decedent had no outstanding debts at death (or all debts have been paid). If both conditions are met, ALL beneficiaries entitled to the estate may agree in writing to dispense with administration entirely — no probate court filing, no personal representative, no Letters of Administration, no creditor notice period. The estate essentially settles by agreement among the beneficiaries who sign. This is available regardless of estate size — even for large estates, if the estate is debt-free and all beneficiaries agree. The written agreement itself transfers the beneficial interests; beneficiaries then present it to institutions holding assets. Some institutions (banks, title companies) may require additional documentation; a Kentucky attorney can help structure the agreement to be acceptable to third parties. Note that this provision applies only to intestate estates — if there is a will, the § 395.455 court petition or full administration is required.
Kentucky's dower and curtesy rights under KRS 392.020 protect the surviving spouse in three ways. First, intestate personal property: the surviving spouse receives one-half of the surplus personal property after debts are paid. Second, real property owned at death in fee simple: the surviving spouse receives a fee (outright) interest in one-half of that real estate. Third — and most surprising — real property owned during the marriage but disposed of before death: the surviving spouse retains a life estate in one-third of any real property the decedent owned during the marriage in fee simple but transferred away before death. This last provision means that a decedent's lifetime gifts or sales of real estate may still give the surviving spouse a life estate claim unless the surviving spouse consented to the transfer. This is why Kentucky real estate sales and conveyances routinely require both spouses to sign the deed, even if the property is titled only in one spouse's name. When a will exists but its provisions are less favorable than the statutory dower/curtesy rights, the surviving spouse may elect to renounce the will and take the statutory share instead under KRS 392.080 — one-third of net real estate and one-half of personal property if children survive, or one-half of each if no children.
Kentucky's will execution statute, KRS 394.040, requires that both witnesses sign in the presence of the testator AND in the presence of each other. Most states only require witnesses to sign in the testator's presence — not necessarily in each other's presence. Kentucky's "mutual presence" requirement means that all three parties (testator and both witnesses) must be in the same room at the same time during execution. A will executed with witnesses who signed at different times, in different rooms, or without seeing each other sign would not satisfy KRS 394.040 and could be challenged. In practice, this means will execution should always be a single gathering with all parties present simultaneously. The safest approach is a self-proving will (KRS 394.225) — a notarized affidavit signed by the testator and both witnesses, attached to the will, which allows the will to be admitted to probate without witness testimony. The notary's presence during execution further confirms the mutual presence requirement was satisfied.
Kentucky enacted SB 50 (Acts Ch. 134) in April 2026, amending Kentucky's intestate succession and estate administration statutes. The changes take effect July 15, 2026. For deaths on or after July 15, 2026, the new amended laws apply. The legislation updated multiple provisions of KRS Chapters 391–395, including changes to who inherits, in what proportions, and how certain administrative procedures work. The full text of Acts Ch. 134 is available on the Kentucky Legislature website. For deaths before July 15, 2026, the pre-amendment statutes apply. For deaths after that date, use the amended statutes. Given the significance of the changes, families dealing with estates of Kentucky decedents who died near July 15, 2026 should consult a Kentucky probate attorney to confirm which version of the law applies and how it affects distribution. The Kentucky Bar Association's lawyer finder at kybar.org can connect you with a probate attorney in your area.
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