Upon the death a person, his or her surviving spouse has several rights.  One of the most important one is the spousal exemption.  The spousal exemption is the amount that a surviving spouse may take from the estate of the deceased spouse free from claims of creditors.  The exemption must be requested from the district court during the probate process.

Last year, the Kentucky legislature increased the amount of the spousal exemption from $15,000 to $30,000.  If there is no spouse, this amount is available to children of the decedent.

This change is important because it increases the amount of personal property that can be safeguarded from the decedent’s unsecured creditors.  Additionally, it will increase the number of estates than can dispense with administration  as opposed to opening a full probate.  Estates with less than $30,000 may now be able to shorten the probate process.

 House Bill 307 passed in the 2020 Regular session; click here to read the bill. Read the updated statute; click here.

If you have questions about your ability to utilize the increased exemption or to dispense with administration, you should contact an attorney who practices in probate and estate administration.