Author: Joseph Wolfe

Worried the Executor Is Misusing Estate Funds? What Kentucky Beneficiaries Can Do

Posted by Joseph Wolfe on

Months can pass after a loved one’s death with no updates and no answers from the executor or administrator. Over the years, Wolfe & Houlehan has represented many beneficiaries and heirs who came to us with the same quiet worry: Is the person in charge of this estate taking money that isn’t theirs?

Here is what a Kentucky fiduciary owes you and how to get answers, including under Senate Bill 50 (2026 Ky. Acts ch. 134), which took effect July 15, 2026.

At a Glance

  • Heirs and beneficiaries are entitled to see the sealed Financial Disclosure and inventory, even though the public cannot.
  • You can ask the court to order an accounting, file exceptions to a settlement, and, in the right case, seek removal and recovery of lost funds.
  • Wolfe & Houlehan offers a $300 flat-fee Motion for an Accounting (with an optional $200 attorney consultation), other à la carte services, and full-service representation.

Why the Suspicion Arises

In our experience, the suspicion usually starts not with hard evidence but with a lack of voluntary transparency. Calls go unreturned. Questions about bank accounts get vague answers. A house is sold, and no one explains where the money went.

Sometimes the Worry Is Justified

Sometimes a beneficiary’s instincts are exactly right. Over the years, we have handled a number of matters where those suspicions proved well founded. Here are just a couple of examples.

In one, a Kentucky attorney serving as personal representative of our clients’ mother’s estate sold the family farm. Public disciplinary records show he received more than $700,000 for the estate, then filed a false inventory with the probate court and misrepresented where the money was held. By the time the family hired us, the money had been routed through a dozen or so shell companies and was, for all practical purposes, unrecoverable. He pleaded guilty to felony theft, was sentenced to ten years in prison, and was permanently disbarred. That prison sentence was the only justice our clients received, and they told us they wished they had acted on their suspicions sooner.

In another, a church deacon serving as trustee of the trust our clients inherited from their father took millions of dollars of their inheritance and would not provide a real accounting despite repeated requests. He was later sentenced to 20 years in prison on theft and securities-fraud charges.

This doesn’t mean most fiduciaries are dishonest. But matters like these come up often enough that reasonable suspicions deserve prompt attention.

Silence Isn’t Always Theft

Often there is an innocent explanation: an inexperienced, grieving relative, or an estate that simply takes time. Kentucky law generally does not allow a personal representative to distribute the estate until six months after qualifying (KRS 395.190), and creditor claims and taxes must be dealt with first. Still, a fiduciary must account for other people’s money, so silence warrants action.

Warning Signs to Watch For

None of these proves misconduct, but each deserves a closer look:

  • No inventory filed within 90 days of appointment.
  • Refusal to provide a copy of the inventory when asked.
  • The executor using estate property, or selling it to themselves or a relative, or below market value.
  • Personal and estate funds mixed in the same account.
  • Large or unexplained “expenses.”
  • Missed settlement deadlines.
  • Pressure to sign a waiver before you have seen any numbers.

What a Kentucky Fiduciary Owes You

An executor (named in a will) or administrator (appointed when there is no will) is a fiduciary who must act for the estate and its beneficiaries, not for themselves.

Loyalty and Good Faith

A fiduciary may not use estate property for personal gain or put their own interests ahead of the beneficiaries’. When applying for appointment in Kentucky, a personal representative must acknowledge in writing that they are subject to removal if they fail to perform their duties, and to “possible civil and criminal penalties for improper conversion of any property” they hold as a fiduciary (KRS 395.015(1)(e)).

Inventory

The personal representative must file an inventory within 90 days after qualifying, and an amended inventory if they find more property or a listed value was wrong (KRS 395.250).

Periodic and Final Settlements

A settlement is an accounting to the court. Under KRS 395.610, a fiduciary must file a periodic settlement two years after appointment and annually after that, until the estate is fully distributed and all debts, costs, fees, and taxes are paid. A settlement must:

  • list the estate’s assets, with beginning and current values;
  • account for every receipt and disbursement, with supporting documentation; and
  • for a final settlement, show how assets were distributed and the fees paid to the fiduciary and their attorney.

Under KRS 395.615, no credit is allowed a fiduciary for disbursements, fees, or services “without legal evidence to justify it.”

How Senate Bill 50 Changed What You Can See

SB 50 made estate finances more private, but not from heirs and beneficiaries. (See our post on Kentucky’s 2026 probate changes under Senate Bill 50.)

  • The Financial Disclosure is sealed. The probate petition (AOC-805, Rev. 7-26) no longer lists property values. They now go on a separate Financial Disclosure (AOC-808). Under KRS 395.015(3)(c), it is confidential and may be disclosed only to the personal representative, the personal representative’s attorney, any beneficiary or heir at law, the Department of Revenue, or others by court order on good cause.
  • The inventory is sealed, too. The 90-day inventory is filed under seal, but the personal representative must furnish a filed copy to an heir or beneficiary who requests one (KRS 395.250(2)(a)). Settlements must also follow these confidentiality rules (KRS 395.250(6)).
  • CourtNet won’t show them. Since July 15, 2026, CourtNet does not display images of Financial Disclosures, Inventories, and Settlements, so you may need to request them from the district court clerk.

One caution: you may not copy or release sealed information without court authorization, or you risk contempt (KRS 395.250(2)(b)).

Practical Tools for Kentucky Beneficiaries

1. Ask for Information, and File a Demand for Notice

Start with a written request to the personal representative (or their attorney) for the inventory and a status update. You may also file a demand for notice with the court; after that, the court sends you copies of orders in the estate, and related orders cannot be entered until you have received written notice (KRS 395.012).

2. Review the Court File

Check the district court file for what has, and hasn’t, been filed: the appointment order, any bond, the inventory, and settlements.

3. Compel an Inventory or Accounting

If the inventory or a settlement is overdue, the court must set a deadline and, if it is missed, order the fiduciary to show cause why they should not be removed, held in contempt, fined ($100 per day under KRS 395.990), or denied compensation (KRS 395.255).

You also don’t have to wait two years for an accounting. On the motion of any interested person, for good cause shown, the court may order the fiduciary to file a settlement at any time (KRS 395.610(4)).

4. Object: File Exceptions to a Settlement

When a settlement is set for hearing, exceptions must be filed before the hearing (KRS 395.625). If no exceptions are filed, a settlement made according to law will be approved. If exceptions are filed, the court can hear evidence and “reject, confirm, alter, or amend the settlement” (KRS 395.630). A confirmed settlement becomes prima facie evidence between the parties, so silence can make it harder to challenge later.

Be careful with waivers. If asked to sign a waiver so the estate can close with an informal final settlement, you have the right to request an accounting of the estate’s assets before you sign (KRS 395.605(2)(b)).

5. Seek Removal of the Fiduciary

Kentucky law requires removal in specific situations, such as incapacity, insolvency, or moving out of state without designating a process agent (KRS 395.160). A fiduciary who fails to appear at a show-cause hearing on an overdue inventory or settlement is automatically removed (KRS 395.255(4)(b)). Where the problem is serious mismanagement or self-dealing, a beneficiary can ask the court to remove the fiduciary. A removed representative must settle their accounts and turn the estate over to a successor.

6. Bond and Surety Claims

Under SB 50, a personal representative no longer posts a surety bond by default. The court orders one for public administrators and curators, or when it decides a bond is needed to protect the estate (KRS 395.130). Any interested party may ask the court to increase a bond. If a bond was posted, the surety can be a source of recovery: a successor fiduciary may sue the former personal representative and the sureties on the bond for damages caused by maladministration (KRS 395.300).

7. Surcharge and Recovery

If money was misused, the court can disallow improper credits and alter the settlement, holding the fiduciary personally responsible for the loss (often called a “surcharge”). In more complex cases, a beneficiary may bring an action in circuit court to settle the estate, starting six months after the representative qualifies (KRS 395.510).

Why Acting Promptly Matters

Money that has been spent is hard to get back. Deadlines for exceptions can be short, and once a settlement is confirmed or the estate closes, undoing it is much harder. The sooner you look at the records, the more options you are likely to have.

How Wolfe & Houlehan Can Help

Flat-Fee Motion for an Accounting

Asking the court to order an accounting is often the right first step. We offer it as a flat-fee, à la carte service:

  • Motion for an Accounting, $300 flat fee: Under limited-scope representation, we prepare the motion from a questionnaire you complete. No attorney consultation is included.
  • Optional add-on, $200: Add up to a one-hour consultation with Joe Wolfe, for a total of $500.

Other À La Carte (Limited-Scope) Services

With limited-scope representation, we handle discrete tasks without formally entering an appearance for the whole matter, such as:

  • reviewing the court file, including the sealed Financial Disclosure and inventory;
  • drafting a demand letter requesting an accounting; and
  • drafting exceptions or objections for you to file.

These tasks are priced per task, and we will quote you before work begins.

Full-Service Representation

When a dispute calls for an attorney on the record, such as contested exceptions, removal, or recovering misused funds, Joe formally enters his appearance and represents you. Full-service representation is billed at $300 per hour, reduced to $250 per hour when invoices are paid on time.

Talk With a Kentucky Probate Attorney

Contact Wolfe & Houlehan PLLC to schedule a consultation. Call us at (859) 444-4693 or visit our office at 226 North Upper Street, Lexington, KY 40507.

Sources

This article provides general information about Kentucky law and is not legal advice. Reading it does not create an attorney-client relationship. For advice about your specific situation, consult an attorney.

Kentucky’s 2026 Probate Changes: What Senate Bill 50 Means for Families and Executors

Posted by Joseph Wolfe on

If you are opening a probate case in Kentucky, or you are a family member watching a loved one’s estate move through district court, the process looks a little different than it did a year ago. Senate Bill 50 (2026 Ky. Acts ch. 134) took effect on July 15, 2026. It changed how estate values are reported, who can see them, and how personal representatives are appointed.

At a Glance

  • Property values no longer appear on the petition for probate (AOC-805).
  • A separate, sealed Financial Disclosure (AOC-808) is now filed with the application for appointment.
  • The inventory deadline moved from 60 to 90 days, and the inventory is also filed under seal.
  • Financial Disclosures, Inventories, and Settlements are no longer viewable online through CourtNet.
  • A new Declaration of Oath of Fiduciary (AOC-809) is required, and some appointments may now happen without a hearing.
  • Heirs and beneficiaries still have the right to see the sealed financial documents.
  • Wolfe & Houlehan offers a $1,000 flat-fee, limited-scope probate document package for executors and administrators, as well as full-service representation.

Property Values Are Off the Petition

For decades, the Kentucky petition for probate asked for the known values of the decedent’s real and personal property. Anyone who pulled the court file could see a snapshot of what the estate was worth.

That is no longer the case. The current Petition for Probate, AOC-805 (Rev. 7-26), no longer has a property-values section. Estate values are now reported on a separate, sealed document, explained below.

The New Financial Disclosure (AOC-808)

Instead, values now go on a separate document: the Financial Disclosure, AOC-808 (Rev. 7-26), which must be filed with the application for appointment. The disclosure lists approximate, good-faith values of:

  • the decedent’s real estate (excluding joint survivorship property); and
  • the decedent’s personal property, including household goods, jewelry, collectibles, stocks, bonds, bank accounts, retirement accounts, and insurance payable to the estate.

The form itself is stamped “CLERK: FILE UNDER SEAL PURSUANT TO KRS 395.015.”

Who Can See It

Under KRS 395.015(3)(c), the Financial Disclosure is confidential, placed under seal, and disclosed only to:

  • the personal representative;
  • the personal representative’s attorney;
  • any beneficiary or heir at law;
  • the Department of Revenue, as required by subsection (9) and KRS 395.250; or
  • others by court order on good cause, which includes a creditor who has filed a verified claim.

KRS 395.015(3)(d) adds that good cause cannot rest solely on the fact that the decedent was a public official or public figure.

The Inventory: More Time, More Privacy

The deadline for filing the estate inventory moved from 60 days to 90 days.

Like the disclosure, the inventory is now confidential and filed under seal under KRS 395.250. Anyone given access to sealed records may not copy or release the information without court authorization, and doing so can be treated as contempt of court. If you receive these documents as an heir or beneficiary, treat them as confidential.

CourtNet and Redacted Copies

On July 15, 2026, CourtNet was updated so that images of Financial Disclosures, Inventories, and Settlements are no longer visible online. Because these documents are now protected, redacted copies of them are no longer required.

A New Oath and, Sometimes, No Hearing

SB 50 also brought a new Declaration of Oath of Fiduciary, AOC-809 (Rev. 7-26). The law allows an appointment to be made without a hearing in some cases when a notarized oath is submitted.

Courts are putting this into practice in their own ways. Jefferson District Court, for example, began reviewing uncontested appointment petitions off the docket starting September 8, 2026, unless the court decides a hearing is needed. We have not found a Fayette County-specific order on this point, and local practice may vary from county to county. If your case is in Fayette or elsewhere in Central Kentucky, confirm how that court is handling appointments before assuming a hearing will, or will not, take place.

What This Means for Heirs and Beneficiaries

You Can Still See the Numbers

The public can no longer browse estate values, but heirs and beneficiaries still can. If you are an heir with concerns about how an estate is being handled, you have the right to request the Financial Disclosure and the inventory.

Timing Matters

If you have concerns about who should serve as personal representative, objecting before the fiduciary is appointed, at or before the appointment hearing, is often easier than trying to remove one later. With some appointments now happening without a hearing, that window may be shorter than you expect. Find out early whether a hearing will even be held.

Read Waivers Carefully

You may be asked to sign an Affidavit of Waiver of Appointment (AOC-815). This form lets an heir tell the court, in advance, where they stand on the proposed appointment so the case can move forward. It is not all-or-nothing. You can choose which waivers to check:

  • No objection to the appointment of the proposed personal representative;
  • Waiver of the hearing on the appointment; and/or
  • Waiver of notice.

Each box gives up something different. Waiving notice, for example, may mean you do not receive formal notice of the appointment proceedings. Don’t sign a waiver casually, especially now that a waived hearing may mean no hearing at all. If you are comfortable with the proposed fiduciary but want to stay informed, you may decide to check only some of the boxes.

What This Means for Personal Representatives

If you are opening a probate case:

  • Use the current Rev. 7-26 forms, including the AOC-805 petition, the AOC-808 Financial Disclosure, and the AOC-809 Declaration of Oath of Fiduciary.
  • Prepare good-faith value estimates for the Financial Disclosure at the start of the case.
  • Calendar the 90-day inventory deadline.
  • Remember that heirs and beneficiaries are entitled to see the disclosure and inventory, so accuracy and transparency still matter.
  • Check local practice on whether your appointment will be decided with or without a hearing.

Sources

A Flat-Fee Option: Limited-Scope Probate Package

SB 50 added new pieces to the process: revised forms, a sealed Financial Disclosure, a 90-day inventory deadline, and a new oath of fiduciary. With some appointments now handled without a hearing, there may be fewer chances to catch a mistake in court. That makes getting the paperwork right from the start more important than ever.

For executors and administrators who want professional help without full representation, Wolfe & Houlehan offers a bundled, limited-scope representation package. For a $1,000 flat fee, the firm drafts all of the documents needed to complete the probate process.

How Limited-Scope Representation Works

Under this arrangement, Joe Wolfe does not formally enter an appearance on the court record for the executor or administrator. The personal representative files the documents and appears in court on their own, but with professionally prepared paperwork. The exact scope of the firm’s services is set out in a written agreement.

Kentucky Inheritance Tax Returns

If the estate has a Class B and/or Class C beneficiary under Kentucky’s inheritance tax, the firm can also prepare the Kentucky inheritance tax return for an additional $500 flat fee. In general, Class A beneficiaries (the closest family members) are exempt from Kentucky inheritance tax. Class B and Class C beneficiaries, who are generally more distant relatives and non-relatives, may owe it.

Full-Service Representation

Some estates need more hands-on help, such as contested matters, estates with complex assets, or situations where the personal representative would rather not handle court filings and appearances alone. For those estates, the firm offers full-service representation. Joe formally enters his appearance and represents the executor or administrator on the record. Full-service representation is billed hourly at $300 per hour, reduced to $250 per hour when invoices are paid on time.

Who Pays the Fee

Legal fees for administering an estate count as an expense of the estate. That means they are generally paid from estate funds, not out of the personal representative’s own pocket.

Talk With a Kentucky Probate Attorney

Whether you are opening an estate or have questions about how a loved one’s estate is being handled, Wolfe & Houlehan PLLC can help you understand your options under the new rules, whether you need our $1,000 flat-fee, limited-scope document package or full-service representation. Call us at (859) 444-4693 or visit our office at 226 North Upper Street, Lexington, KY 40507.

This article provides general information about Kentucky law and is not legal advice. Reading it does not create an attorney-client relationship. For advice about your specific situation, consult an attorney.