Probate in Kentucky: small estates, no will, and skipping court
The short answer
Kentucky has no small estate affidavit. Instead, the District Court can dispense with administration when the $30,000 spouse or children exemption, plus funeral costs paid, covers the estate. For deaths on or after July 15, 2026, a surviving spouse inherits first. Kentucky has an inheritance tax, but close family, and since 2026 nieces and nephews, are exempt.
When someone dies in Kentucky, the family's first question is usually practical. Do we have to go to court, and how long will it take?
Kentucky does things differently. It has no small estate affidavit, no transfer-on-death deed, and an inheritance tax, and it changed several rules in 2026. It is part of our state-by-state guides. If the word is new, start with what probate is.
Is there a small estate affidavit in Kentucky?
No. Instead, small estates go through a short District Court proceeding called "dispensing with administration" (KRS 395.450). There are two versions.
By court order. Kentucky gives a surviving spouse, or the children if there is no spouse, a $30,000 exemption in personal property (KRS 391.030). If that exemption, by itself or with funeral bills and other preferred debts the family paid, equals or exceeds what's left in the estate, the court may skip administration and transfer the assets (KRS 395.455).
By written agreement. Administration can also be skipped when all of these are true (KRS 395.470):
- There are no debts.
- Every beneficiary agrees in writing, under penalty of perjury.
- Creditors have been advertised for: posted six weeks at the courthouse and published.
- Inheritance and estate tax is paid or provided for.
A surviving spouse can also get a court order to withdraw up to $2,500 from a bank before the exemption is set apart (KRS 391.030).
Who inherits if there's no will?
Kentucky rewrote this for deaths on or after July 15, 2026 (2026 Ky. Acts ch. 134, sec. 1). Deaths before that date follow the old law, where the spouse ranked behind children, parents and siblings for the inheritance share. If you're settling an estate from before July 15, 2026, talk with a lawyer.
Under the new law (KRS 391.010 and 391.030), the surviving spouse takes:
- Everything, if there are no children or grandchildren, or if all of them are also the spouse's and the spouse has no other children.
- Half, in blended families: if the person who died had children who aren't the spouse's, or the spouse has children who aren't the decedent's.
The rest passes in this order:
- Children and their descendants.
- Parents equally, or the surviving parent.
- Brothers and sisters and their descendants.
- Half to the father's side and half to the mother's side: grandparents, then aunts and uncles and their descendants.
- Stepchildren.
- If there is nobody, the state.
Half-brothers and half-sisters inherit half as much as full siblings (KRS 391.050).
A surviving spouse also still has "dower" (KRS 392.020). Since July 15, 2026, it can reach beneficiary-designated accounts, joint accounts and revocable trusts. The math is complicated, so let a lawyer work it out.
Notice that friends never appear on the list. If you want a friend, a charity or a favorite neighbor to receive anything, it has to be in a will or trust. Our post on dying without a will covers what happens when the list runs short.
Who serves as executor?
If there is a will, the executor named in it serves once the will is probated, any required bond is filed, and the oath is taken (KRS 395.020).
Without a will, the court appoints relatives who apply, preferring the surviving spouse. If the spouse doesn't nominate someone suitable, the court picks among those next in line to inherit. If no relative applies within 60 days of death, the court may appoint a creditor or anyone else (KRS 395.040).
The executor is a fiduciary: legally required to act in the estate's interest and follow what the will says.
Can someone out of state serve?
Only a relative. Any Kentucky resident over 18 can serve. A nonresident can serve only if related to the person who died by blood, marriage or adoption, or married to such a relative (KRS 395.005). Certain banks and trust companies can also serve.
So a friend in Ohio can't be appointed, even if your will names them. Name a backup who qualifies.
How long do creditors have?
Debts from before death must be presented within six months after the executor is appointed. If nobody is ever appointed, the limit is two years after death (KRS 396.011).
Is there a simpler way through probate?
Kentucky has no independent administration track. But an executor can take many routine steps without a court order, unless the will says otherwise (KRS 395.195).
At the end, if the executor is the only beneficiary or every beneficiary signs a verified waiver, the court accepts an informal final settlement with no hearing (KRS 395.605). It can be filed six months after appointment, once debts and taxes are paid and shares are handed out.
Our post on the probate process walks through the steps.
How much is the executor paid?
Kentucky caps it. The fee can't exceed 5% of the value of the personal estate plus 5% of the income the executor collects (KRS 395.150). The court can allow more for unusual work, or for work involving real estate or taxes on property outside the probate estate. Our post on executor fees by state compares approaches.
Can my house skip probate?
Not with a transfer-on-death deed. More than 30 states and DC allow them, but Kentucky doesn't. A 2026 bill to adopt one (SB 34) stalled in the House and did not become law (Kentucky General Assembly, SB 34 record).
A revocable living trust is the usual way to keep a Kentucky home out of court. Our post on how to avoid probate compares the options, and what a trustee does explains who runs the trust.
Will my heirs owe Kentucky inheritance tax?
Kentucky has no estate tax, but it does have an inheritance tax, paid by the people who inherit (Kentucky Department of Revenue). How much depends on how they are related to the person who died (KRS 140.070 and 140.080).
| Class | Who | Tax |
|---|---|---|
| A | Spouse, parents, children (including stepchildren and qualifying adopted children), grandchildren, brothers and sisters (including half), and for deaths on or after January 1, 2026, nieces and nephews | Fully exempt |
| B | Daughter-in-law, son-in-law, aunt, uncle, great-grandchild | $1,000 exemption, then 4% rising to 16% |
| C | Everyone else, including cousins, great-nieces and great-nephews, nieces and nephews by marriage, and friends | $500 exemption, then 6% rising to 16% |
The nieces and nephews change came from a 2026 law (2026 Ky. Acts ch. 198); older pages may still list them in Class B. Paying within nine months of death earns a 5% discount.
Which route fits?
| Situation | Likely route |
|---|---|
| Spouse or children's $30,000 exemption, plus funeral costs paid, covers the estate | Court order dispensing with administration |
| No debts, every beneficiary agrees, creditors advertised | Dispensing by written agreement |
| Home held in a revocable trust | Passes under the trust, outside probate |
| Larger estate | Regular administration, with informal final settlement if beneficiaries waive |
Here is a typical case, a composite. Betty, 77, lived in Bowling Green and never married. Her home was in a living trust naming her niece as successor trustee. Because Betty died in 2026, her niece owes no inheritance tax.
Some people would rather not leave this to family far away. Trella Trust Company, through a Kinly membership, can be named as executor or trustee, first or as backup to someone you choose. If it steps in and settles the estate, that work is charged by the hour, and you see the rates before anything starts.
Before death, the papers that matter most are your powers of attorney. See our Kentucky financial power of attorney guide and Kentucky medical power of attorney guide.
Common questions
Does Kentucky have a small estate affidavit?
No. Small estates use a District Court order dispensing with administration. It works when the $30,000 exemption for a spouse or children, plus preferred debts they paid such as funeral costs, covers the estate.
Does a surviving spouse inherit everything in Kentucky?
For deaths on or after July 15, 2026, the spouse takes everything if there are no descendants, or if all descendants are shared and the spouse has no others. In blended families the spouse takes half. Earlier deaths follow the old law.
Can a nonresident be an executor in Kentucky?
Only if related to the person who died by blood, marriage or adoption, or married to such a relative. A nonresident friend can't serve.
Do nieces and nephews pay Kentucky inheritance tax?
Not for deaths on or after January 1, 2026. Great-nieces, great-nephews and in-law nieces and nephews are still Class C.
Does Kentucky allow transfer-on-death deeds?
No. Kentucky has no transfer-on-death deed for real estate. A 2026 bill to create one did not pass. A living trust is the usual alternative.
Sources
- KRS 395.450: Jurisdiction to dispense with administration (Kentucky Legislature)
- KRS 395.455: Transfer of assets without administration (Kentucky Legislature)
- KRS 395.470: Dispensing with administration by written agreement (Kentucky Legislature)
- KRS 391.010: Descent of real estate (Kentucky Legislature)
- KRS 391.030: Descent of personal property; exemption (Kentucky Legislature)
- KRS 391.050: Collaterals of the half blood (Kentucky Legislature)
- KRS 392.020: Surviving spouse's dower and curtesy (Kentucky Legislature)
- KRS 395.020: Executor not to act until will probated (Kentucky Legislature)
- KRS 395.040: Administrator; persons entitled to be appointed (Kentucky Legislature)
- KRS 395.005: Who may be appointed as fiduciary (Kentucky Legislature)
- KRS 396.011: Presentation of claims against estate (Kentucky Legislature)
- KRS 395.195: Transactions authorized for personal representative (Kentucky Legislature)
- KRS 395.605: Informal final settlement (Kentucky Legislature)
- KRS 395.150: Compensation of representatives (Kentucky Legislature)
- Kentucky General Assembly, 2026 SB 34 record
- KRS 140.070: Inheritance tax rates (Kentucky Legislature)
- KRS 140.080: Exemptions of inheritable interests (Kentucky Legislature)
- Kentucky Department of Revenue, Inheritance and Estate Tax
- 2026 Ky. Acts ch. 134 (SB 50) (Kentucky Legislature)
- 2026 Ky. Acts ch. 198 (HB 869) (Kentucky Legislature)
This page is general information, not legal or financial advice. Laws vary by state.