Does Every Estate Go Through Probate? Your Guide to When Probate Is Needed in Kentucky
Many individuals assume every estate must go through probate, but that is not the case in Kentucky. Whether probate is necessary depends on how the decedent’s assets were owned and what planning was done prior to their death. Understanding the difference between a probate asset and a non-probate asset can save families time, money, and stress.
Below is a brief guide on when probate is required in Kentucky, when it isn’t, and what options may be available.
What is Probate?
Before discussing when probate is required, it helps to understand what probate actually is. Probate is the legal process used to transfer a deceased person’s property to the people who inherit. This can either be named persons in a valid will or, if no will exists, that person’s next-of-kin under Kentucky’s intestacy laws. Probate may involve validating a will, appointing a personal representative (executor or administrator), collecting and appraising assets, notifying creditors, paying debts and taxes, and distributing what remains.
When is Probate Required?
Probate is generally necessary when a person dies owning assets in their individual name without a beneficiary designation or a right of survivorship. Common examples include a home title solely in the decedent’s name, bank accounts that do not list a payable-on-death (POD) beneficiary, and vehicles titled only to the deceased. When assets are owned this way, a court order is necessary to give someone legal authority to transfer or distribute them, which is why probate becomes required.
When is Probate NOT Required?
On the other hand, many estates are able to avoid probate entirely. Assets with named beneficiaries such as life insurance policies, retirement accounts, and POD designations transfer directly to the named beneficiary or beneficiaries upon death. Similarly, jointly owned property held with a right of survivorship, including joint bank accounts and real estate, passes automatically to the surviving owner.
In addition, property that has been properly transferred into a trust is distributed according to the terms of the trust and does not go through probate.
Conclusion
The bottom line is that not every estate goes through probate, but many do. If you are settling a loved one’s estate or planning ahead for your own, it is important to understand how your assets will be handled and what steps can be taken to simplify the process. At Bluegrass Elderlaw, we help our clients understand how their property will pass at death and assist with planning strategies that align with their goals.
Disclaimer: This post is for general informational purposes only. To learn more about probate, visit our website or call us today at (859) 281-0048.