When someone passes away in Kentucky, a petition is filed with the probate court. The probate process helps with estate administration and the distribution of assets. These assets include tangible assets, like a home or a car, along with financial assets, such as savings and investments.
Most bank accounts will go through probate. Say you have a simple will that states that your financial assets should be divided evenly among your adult children. The estate executor will be able to access the bank account to pay off any financial obligations, like final debts or taxes, and they can then distribute the remainder of the money in accordance with your will.
Strategies to help your accounts avoid probate
There are, however, some ways that you can avoid having a bank account go through probate. One example is if the account has joint ownership. For instance, perhaps you and your spouse own the bank account together. If you pass away, then your spouse will likely become the sole owner of the account, and it does not need to go through probate.
Another example is if you use a payable-on-death (POD) designation. This essentially means choosing a beneficiary, such as one of your adult children, and applying that beneficiary designation to the bank account. When you pass away, the person you selected then takes over as the new owner of that account.
There are a number of ways to prevent your bank accounts as well as other assets from having to go through probate. This can save your loved ones time, money and stress. Having experienced estate planning guidance can help you understand all of your legal options.
