What happens to a Person's Estate Who Dies Without a Will and Large Debts in Kentucky?

Full question:

What happens to my mother's estate upon her death? She had no will, a retirement fund without a beneficiary list, and a large debt balance.

• Category: Wills and Estates
• Subcategory: Probate
• Date: 04/07/2025
• State: Kentucky

Answer:

Generally, when a person dies, the estate passes as a will specifies or else it is distributed according to state intestacy distribution laws. When a person dies intestate, a petition for adminstering the estate and appointment of an adminstrator (male) or administratrix (female) is filed with the court, requesting letters of administration to be issued so that the adminstrator(-trix) may settle the affairs of the decedent's estate. Depending on the type of funds involved, there are requirements for having the assets transferred to another, such as presenting a copy of the letters of administration. In WA, a surviving spouse if entitled to inherit all of the community property and half of the separate proprety if children of the deceased survive.

An intestate estate is any part of the estate of a decedent not effectively disposed of by his will, which passes to his heirs as prescribed in the applicable state's laws of intestate succession. The estate of a decedent who dies intestate is distributed according to the intestacy laws where the decedent was domiciled and/or where the decedent owned real property. Under the intestate laws of succession, the spouse and heirs will receive property by the laws of descent and distribution and marital rights in the estate which may apply to a surviving spouse. Each state has an intestacy law which specifies who is to inherit property in the absence of a will. If a person dies without a will, the probate court will appoint a personal representative (or administrator) for his or her estate to receive creditors' claims against the estate, pay debts, and distribute the deceased person’s remaining property according to state laws. Certain assets are not included as part of a person's estate and may pass outside of probate, such as trust assets and transfer on death accounts or property owned by joint tenants which passes under a right of survivorship when one tenant dies.

In cases where the decedent didn't own property valued at more than a certain amount, which varies by state, the estate may go through a small estate administration process, rather than the formal probate process.

In each state, if the value of a decedent's estate doesn't exceed a certain amount, the small estate procedures may be used to collect and distribute the assets of the estate. An heirship affidavit may be used in place of letters of administration. In Krntucky, $15,000 of personal property is exempt and will go to either a survivinfg spouse or the children if there isn’t one. If debts exceed assets, the court may dispense with administration.