Probate can be a lengthy, expensive, and stressful process – but it does not have to be. One of the most common questions our Lexington probate attorneys hear is whether everything a person owns must pass through probate when they die. The general answer is no. Kentucky law sends some assets through the probate court and allows others to pass directly to the people you choose, outside of court supervision.
Understanding which assets fall into which category is the foundation of good estate planning. With the right plan in place, most families can minimize – and sometimes nearly eliminate – the time, cost, and stress of probate.
There is also a privacy benefit. Probate filings have historically been public records, which meant that without planning, the value of a decedent’s assets, the debts owed, and the identities of heirs and beneficiaries were visible to anyone who cared to look. Kentucky’s 2026 probate reform improved this considerably: the estate inventory, the periodic and final settlements, and the new financial disclosure statement filed to open an estate are now placed under seal and are available only to the fiduciary, the attorneys, the beneficiaries, or by court order for good cause. The will itself and the existence of the proceeding, however, remain public. Thoughtful planning keeps even more of your family’s affairs private.
At a Glance: Probate vs. Non-Probate Assets in Kentucky
| Generally goes through probate | Generally passes outside probate |
|---|---|
| Bank and investment accounts in the decedent’s name alone, with no POD/TOD designation | Life insurance, IRAs, 401(k)s, and annuities with a valid named beneficiary |
| Real estate titled solely in the decedent’s name or held as a tenant in common | Real estate held with an express right of survivorship (including tenancy by the entirety) |
| Vehicles, boats, and other titled property owned individually | Bank accounts with a payable-on-death (POD) designation |
| Business interests (corporate shares, LLC membership interests) not covered by a trust or transfer agreement | Stocks, bonds, and brokerage accounts registered in transfer-on-death (TOD) form |
| Valuable personal property, collections, equipment, and livestock | Assets properly titled in a revocable living trust |
2026 law update
Kentucky enacted a major reform of its probate and inheritance statutes in the 2026 legislative session. Senate Bill 50 (2026 Ky. Acts ch. 134), signed April 13, 2026 and effective July 15, 2026, rewrote the intestate succession rules in KRS 391.010, expanded the surviving spouse’s rights under KRS 392.020, recognized electronic wills, sealed estate financial filings, and streamlined fiduciary appointment and bonding under KRS Chapter 395. The discussion below reflects current law; deaths occurring before July 15, 2026 are generally governed by the prior statutes.
What Is Probate?
Probate is the court-supervised process of settling a deceased person’s estate: proving the will (if there is one), appointing a personal representative, gathering the assets, paying valid debts and taxes, and distributing what remains to the beneficiaries named in the will – or, if there is no will, to the heirs designated by Kentucky’s intestate succession statutes. In Kentucky, probate matters are handled by the District Court in the county where the decedent resided – for our Lexington clients, the Fayette County District Court – under KRS Chapters 391 through 397.
If someone dies without a will, Kentucky law – not the family, and not the decedent’s unwritten wishes – decides who inherits. Under KRS 391.010 as amended effective July 15, 2026, the surviving spouse’s share depends on the family structure:
- If the decedent left no descendants, the spouse takes the entire estate.
- If every descendant of the decedent is also a descendant of the surviving spouse, and the surviving spouse has no descendants from outside the marriage, the spouse takes the entire estate.
- If the decedent left descendants who are not descendants of the surviving spouse – children from a prior relationship, for example – the spouse takes one-half, and the decedent’s descendants share the remainder.
- If all of the decedent’s descendants are shared, but the surviving spouse has descendants from outside the marriage, the spouse likewise takes one-half.
Whatever does not pass to the spouse – or the entire estate, if there is no spouse – goes to the decedent’s children and their descendants; then to parents; then to siblings and their descendants; then to grandparents; then to aunts and uncles and their descendants; then (new in 2026) to the decedent’s stepchildren; and then to more remote kindred. If no kindred exist at all, the property escheats to the Commonwealth.
Even under the modernized statute, intestate succession may not reflect what the decedent actually wanted. Unmarried partners, close friends, and charities receive nothing without a will, and stepchildren inherit only when the decedent left no spouse, descendants, parents, siblings, grandparents, or aunts and uncles. That is precisely why a properly drafted will and estate plan matter: they let you decide who receives your property, in what amounts, and on what timeline.
Which Assets Must Go Through Probate in Kentucky?
As a general rule, probate is required for assets titled in the decedent’s name alone, with no beneficiary designation and no surviving co-owner with a right of survivorship. Common examples include:
- Bank and investment accounts held solely in the decedent’s name, with no payable-on-death or transfer-on-death designation;
- Vehicles, boats, and other titled property owned individually;
- Business interests, such as shares in a family corporation or an LLC membership interest, unless a trust or transfer agreement provides otherwise;
- Personal property of significant value, such as equipment, collections, or livestock; and
- Real estate titled solely in the decedent’s name or held as a tenant in common. A note on vehicles: Senate Bill 50 also created a new section of KRS Chapter 186A establishing a procedure for transferring a motor vehicle to a designated beneficiary upon the owner’s death, with a matching exemption from the motor vehicle usage tax under KRS 138.470. Those provisions take effect January 1, 2028. Until then, an individually titled vehicle remains a probate asset.
Real estate deserves a special note. Under Kentucky law, title to real property vests in the decedent’s heirs or devisees at the moment of death, subject to the claims of creditors – so in a technical sense, land is not “administered” the way bank accounts are. As a practical matter, however, a will must still be probated to establish the devisee’s title, and where there is no will, the family will typically need to record an affidavit of descent before the property can be cleanly sold or mortgaged. Solely-owned real estate, in other words, still runs through the probate system even if it takes a somewhat different path.
Non-Probate Assets in Kentucky: What Passes Outside of Probate?
Assets that avoid probate generally fall into three categories:
- Assets with a valid beneficiary designation – life insurance proceeds, IRAs, 401(k)s and other retirement accounts, and annuities pass directly to the named beneficiary;
- Assets owned jointly with a right of survivorship – which pass automatically to the surviving co-owner; and
- Assets held in a valid trust – which are distributed by the trustee according to the trust’s terms, without court involvement.
How to Avoid Probate in Kentucky: The Planning Tools
Kentucky law provides several specific tools for moving assets into the non-probate categories.
A Last Will and Testament
A will does not avoid probate – it directs it. But it remains the cornerstone of nearly every estate plan. Under KRS 394.040, a Kentucky will must be in writing and signed by the testator (or by another person at the testator’s direction and in his or her presence). Unless the will is wholly written in the testator’s own handwriting – a holographic will, which Kentucky recognizes – it must also be subscribed by two credible witnesses in the presence of the testator. Kentucky law does not require a will to be notarized, but most attorneys add a notarized self-proving affidavit, which allows the will to be admitted to probate without tracking down the witnesses years later.
As of July 15, 2026, Kentucky also recognizes electronic wills under the Uniform Electronic Wills Act enacted as part of Senate Bill 50. An electronic will must be a record readable as text, signed by the testator and by at least two witnesses who are Kentucky residents physically located in Kentucky. The formal requirements are exacting, however, and the consequences of a defective will are severe: an invalid will is treated as no will at all. This is an area where experienced counsel earns its keep.
A Revocable Living Trust
A trust is a legal arrangement in which a person (the grantor) transfers property to a trustee to hold and manage for named beneficiaries. If the grantor retains the power to amend or revoke the trust, it is a revocable or “living” trust; if that power is given up, the trust is irrevocable. A revocable living trust typically becomes irrevocable at the grantor’s death.
Property properly titled in the name of a revocable living trust does not pass through probate. At death, the successor trustee simply administers and distributes the trust assets according to the trust document – privately, and usually far faster than a court proceeding. Revocable and irrevocable trusts carry different tax, creditor-protection, and Medicaid-planning consequences, so the right structure depends on your goals.
Joint Ownership with Right of Survivorship
When property is owned jointly with a right of survivorship, the surviving owner automatically takes full ownership at the co-owner’s death, outside of probate – regardless of what the deceased owner’s will says. This includes real estate held in a survivorship joint tenancy and, for married couples, tenancy by the entirety.
A critical caution: in Kentucky, survivorship is not presumed. Under KRS 381.120, co-owners generally hold as tenants in common – with no survivorship rights – unless the deed or instrument expressly creates a right of survivorship. A tenant in common’s share does not pass to the co-owner; it passes through the deceased owner’s estate. Many families discover this distinction only after a death, when it is too late to fix. If avoiding probate is the goal, the deed language must be reviewed and, if necessary, corrected now.
Transfer-on-Death (TOD) Securities
Kentucky has adopted the Uniform TOD Security Registration Act, KRS 292.6501 to 292.6512, which allows stocks, bonds, brokerage accounts, and mutual funds to be registered in transfer-on-death form. At the owner’s death, the securities pass directly to the designated beneficiary without probate.
Note that Kentucky has not adopted a transfer-on-death deed for real estate, as many states have. A bill to do so – Senate Bill 34 in the 2026 session – passed the Senate but died in a House committee, so real property in Kentucky still cannot be passed by a simple beneficiary designation. Avoiding probate for real estate requires a survivorship deed, a trust, or another planning technique.
Payable-on-Death (POD) Bank Accounts
Kentucky’s multiple-party account statutes, KRS 391.300 to 391.360, allow checking accounts, savings accounts, and certificates of deposit to carry a payable-on-death designation. At death, the funds belong to the named POD beneficiary and never enter the probate estate.
Whatever combination of beneficiary designations you use, keep them current. If your named beneficiary dies before you, is a minor, or is incapacitated at your death, the asset may end up in probate anyway – or in a court-supervised guardianship or conservatorship – which is exactly the result the designation was meant to avoid. Beneficiary designations should be reviewed after every major life event: marriage, divorce, births, and deaths.
A New Wrinkle: The Surviving Spouse’s Claim Against Non-Probate Assets
Avoiding probate is not the same as avoiding a surviving spouse’s statutory rights – and after the 2026 reform, the difference matters more than ever.
Kentucky has long protected surviving spouses through KRS 392.020, which entitles a spouse to an absolute one-half of the decedent’s “surplus personalty” and a life estate in one-third of certain real estate, in addition to the $30,000 exempt property allowance under KRS 391.030. Before July 15, 2026, that spousal share reached only the probate estate, so a decedent could effectively route assets around a spouse by naming other beneficiaries on accounts and policies.
Senate Bill 50 changed that. As amended, KRS 392.020 now defines “surplus personalty” to include property passing by beneficiary designation, transfer-on-death designation, or payable-on-death designation – expressly including retirement accounts – as well as property jointly owned with a right of survivorship. Life insurance proceeds are excluded from the pool, but they are credited against the spouse’s share. Property the decedent transferred to another person or a trust two or more years before death is not counted; more recent transfers may be.
In practical terms, a surviving spouse who was left off the beneficiary forms may now have a statutory claim that reaches POD accounts, TOD securities, retirement plans, and survivorship property. The personal representative must also list non-probate assets on the new general financial disclosure statement filed when the estate is opened. For blended families and business owners in particular, this is a reason to revisit any plan that relied on beneficiary designations alone.
How Debts and Distributions Are Handled in Probate
When an estate does go through probate, Kentucky law dictates the order in which it is paid out. Under KRS 396.095, claims against the estate are paid by statutory class: the costs and expenses of administration come first, followed by funeral expenses (preferred up to the statutory amount), then debts and taxes entitled to preference under federal law, then those preferred under Kentucky law, and finally all other claims. The surviving spouse’s or children’s $30,000 exempt property set-aside under KRS 391.030 is also protected from most creditor claims.
Creditors do not have unlimited time to act. Under KRS 396.011, most claims must be presented within six months after the appointment of the personal representative, or they are barred. This is one reason probate can actually benefit a family when the decedent had creditor problems or was facing a lawsuit: the process forces claims into the open, cuts them off on a statutory deadline, and lets the family close the book with finality.
The personal representative, for his or her part, must file an inventory of the estate within 90 days of appointment (extended by the 2026 reform from two months), and that inventory – like the estate’s periodic and final settlements – is now filed under seal. Only after valid claims are satisfied are the remaining assets distributed to the will’s beneficiaries or, in an intestate estate, to the heirs under KRS 391.010.
Small Estates: A Simplified Path
Not every estate needs full administration. When a Kentucky estate is modest, the District Court may dispense with administration under KRS 395.455. In broad terms, this option is available when the surviving spouse’s or children’s $30,000 exemption under KRS 391.030 – alone or together with preferred claims that have been paid – equals or exceeds the estate’s distributable personal property. The petition is filed on Form AOC-830, and when granted, the court’s order transfers the property directly to the entitled parties without appointing a personal representative.
For a full discussion of who qualifies and how the process works, see our companion article on the petition to dispense with administration in Kentucky. Whether an estate qualifies for this shortcut – or must proceed through regular probate – is a fact-specific question best answered with the help of a Kentucky probate attorney.
Frequently Asked Questions
Do assets with a named beneficiary go through probate in Kentucky?
Generally, no. Life insurance, retirement accounts, POD bank accounts, and TOD securities pass directly to the named beneficiary – provided the designation is valid and the beneficiary survives the owner and is legally able to take. Keep in mind, however, that since July 15, 2026 a surviving spouse’s statutory share under KRS 392.020 may reach many of these assets even though they avoid probate.
Does jointly owned property avoid probate?
Only if the ownership includes a right of survivorship. Kentucky presumes a tenancy in common unless the deed expressly provides survivorship, and a tenant in common’s interest passes through probate.
Does having a will avoid probate?
No. A will controls how the probate estate is distributed, but the will itself must be probated. Avoiding probate requires non-probate transfer tools – trusts, survivorship ownership, and beneficiary designations.
Does Kentucky have a transfer-on-death deed for real estate?
Not yet. A 2026 bill to adopt one (Senate Bill 34) passed the Kentucky Senate but did not become law. Real estate in Kentucky still passes outside probate only through a survivorship deed, a trust, or a similar planning technique.
What happens if someone dies without a will in Kentucky?
The intestate succession statutes control. For deaths on or after July 15, 2026, amended KRS 391.010 gives the surviving spouse the entire estate when there are no descendants or when all descendants are shared by both spouses (and the spouse has no children from outside the marriage). In blended families, the spouse takes one-half and the decedent’s descendants share the rest. Stepchildren now appear in the line of succession, but only after aunts, uncles, and their descendants. Deaths before July 15, 2026 are governed by the prior statutes, under which the spouse’s automatic share was considerably smaller.
Is probate ever a good thing?
It can be. Probate provides a court-supervised forum to resolve creditor claims on a fixed deadline, clear title to property, and put disputes to rest – valuable finality when a decedent had debts, pending litigation, or a complicated family situation.
Talk to the Probate and Estate Planning Attorneys at Bunch & Brock
Whether you are planning your own estate or settling a loved one’s, knowing which assets pass through probate – and which can bypass it – is where sound decisions begin. The attorneys at Bunch & Brock have decades of experience guiding Central Kentucky families through probate and building estate plans tailored to estates large and modest alike. We will review your assets, explain your options under current Kentucky law in plain language, and design a plan that protects your family, your privacy, and your wishes.
Call our Lexington office today at 859-254-5522 or contact us online to schedule a consultation.
This article is for general informational purposes only and does not constitute legal advice. Reading this article does not create an attorney-client relationship with Bunch & Brock, PSC. Statutory references reflect Kentucky law as of September 2026, including 2026 Ky. Acts ch. 134 (SB 50), effective July 15, 2026. For advice about a specific estate, please consult a licensed Kentucky attorney.
