What Are My Duties as Trustee in Kentucky?
Step-by-step guide for administering a trust after the grantor passes away. Answer a few questions to get a personalized checklist for your situation.
Frequently Asked Questions
A successor trustee in Kentucky has a fiduciary duty to manage trust assets prudently, notify beneficiaries, pay debts and taxes, and distribute assets according to the trust terms.KRS 386B.1-010 et seq.Verified May 31, 2026 Unlike probate, trust administration is private and does not require court involvement.
Kentucky requires the successor trustee to notify qualified beneficiaries of the trust's existence and the trustee's contact information within 60 days of the grantor's death.KRS 386B.1-010 et seq.Verified May 31, 2026 The notice typically includes the trustee's name and address, and the beneficiary's right to request trust information.
When the grantor dies, the revocable trust becomes irrevocable and requires its own EIN (Employer Identification Number) from the IRS. The trustee must file Form 1041 (U.S. Income Tax Return for Estates and Trusts) for any income earned by trust assets after the date of death. The trust may also need to file a Kentucky state income tax return.
Kentucky requires trustees to maintain detailed records of all trust transactions, including income, expenses, distributions, and investment decisions.KRS 386B.1-010 et seq.Verified May 31, 2026 Beneficiaries have the right to request accountings. Proper documentation protects the trustee from liability claims and provides transparency for beneficiaries.
Trustee compensation in Kentucky is based on reasonable compensation for the services performed. Professional trustees typically charge 0.5-1.5% of trust assets annually. Individual (non-professional) trustees often reference executor fee guidelines (2-5% of estate value) as a benchmark. See the Kentucky trustee compensation guide for details.
Trust administration in Kentucky typically takes 6-12 months, compared to 12-18 months for average probate cases.KRS 391.030 (small estate exemption); KRS 395.450 (jurisdiction); KRS 395.455 (transfer of assets without administration); KRS 395.130 (bond); KRS 395.150 (executor compensation; personal-estate base); KRS 396.011 (creditor claims, 6 months); KRS 424.340 (publication of notice)Verified May 31, 2026 Trust creditors have 6 months to file claims, compared to 6 months for probate creditor claims. Trust administration avoids court involvement, public filings, and many of the procedural delays associated with probate. See the Kentucky estate settlement guide for a complete overview.
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Kentucky Estate Planning Resources
In-depth guides covering Kentucky probate laws, trust requirements, and estate planning strategies.
