Kentucky Probate Inventory: Form AOC-841 and the 60-Day Deadline

Sixty days. That's how long Kentucky gives a newly appointed executor to complete and file a full inventory of the estate. The clock starts the day the District Court judge signs your Order of Appointment — not the day you feel ready, not when the family has finished grieving. Day 60 is a hard deadline under KRS 395.250, and missing it is a breach of fiduciary duty.

Here's exactly what you need to know to complete Form AOC-841 correctly.

What the Inventory Is and Why It Matters

The Inventory and Appraisement of Estate (Form AOC-841) is a sworn, itemized list of every probatable asset the decedent owned at the time of death, along with each asset's estimated fair market value on the date of death.

It serves two critical functions. First, it gives the court a financial baseline to evaluate your final settlement accounting — the opening balance against which every subsequent transaction is measured. Second, it establishes the taxable values for Kentucky inheritance tax purposes. Class B and Class C beneficiaries pay tax on inherited assets based on the values you report here.

Getting the inventory wrong in either direction causes problems. Overvaluing assets inflates any inheritance tax liability and may mislead creditors about what's available. Undervaluing assets creates discrepancies that surface during the final accounting.

What to Include: Probatable Assets Only

Include every asset that was titled solely in the decedent's name with no surviving beneficiary designation. Common categories:

Financial accounts: Checking, savings, money market, and CD accounts without a payable-on-death designation. Include the balance as of the date of death.

Investment accounts: Brokerage accounts, stocks, bonds, and mutual funds titled individually. For publicly traded securities, use the mean of the high and low trading prices on the date of death.

Real estate: Any property titled solely in the decedent's name. Include the county property ID and the estimated fair market value, not the tax assessment value. A professional appraisal is helpful for significant property.

Vehicles: Automobiles, boats, motorcycles, and recreational vehicles titled in the decedent's name alone. Use Kelley Blue Book or NADA values for fair market value.

Business interests: Ownership interest in LLCs, partnerships, or closely held corporations. Valuing these often requires a business appraiser.

Personal property: Jewelry, artwork, antiques, firearms, and collectibles of significant value. Document these carefully — small personal items that seem minor can cause significant disputes among heirs.

Receivables: Money owed to the decedent — promissory notes, outstanding loans to family members, unpaid wages. These are estate assets.

Accrued income: Interest earned but not yet credited to bond or savings accounts as of the date of death.

What to Exclude: Non-Probate Assets

The single most common inventory error is including non-probate assets that pass automatically outside the probate process. These do not belong on Form AOC-841:

Joint tenancy accounts — if the account was titled "John Doe or Jane Doe" with right of survivorship, the surviving co-owner receives it automatically. Not a probate asset.

Payable-on-death (POD) and transfer-on-death (TOD) accounts — bank and investment accounts with named beneficiaries pass directly to those beneficiaries.

Life insurance — proceeds payable to a named beneficiary are not estate assets and are not taxable under Kentucky inheritance tax.

Retirement accounts (IRA, 401k, 403b) — if a beneficiary is named, these pass outside probate.

Jointly owned real estate with right of survivorship — if the deed reads "as joint tenants with right of survivorship," the surviving owner takes automatically.

Trust assets — property held in a properly funded revocable or irrevocable trust at the time of death is not a probate asset (though it may still be subject to Medicaid estate recovery under Kentucky's expanded definition).

Including these assets on AOC-841 inflates the probatable estate, potentially triggering unnecessary bond increases and overestimating creditor recovery — then creating accounting problems when assets don't flow through the estate.

How to Value Assets

Kentucky requires assets to be valued at their fair cash value on the exact date of death. The state does not permit alternate valuation dates (used for federal estate tax purposes) except for qualifying agricultural real estate under specific statutes.

Use these valuation benchmarks:

• Bank accounts: Balance on date of death (get a statement or letter from the bank)
• Stocks/bonds: Mean of high and low price on date of death (get historical trading data)
• Real estate: Estimated market value, not tax assessment; appraisal recommended for high-value property
• Vehicles: Kelley Blue Book Private Party Value on date of death
• Personal property: Reasonable estimated resale value, not replacement cost
• Business interests: Consult a CPA or business appraiser; book value is rarely equal to fair market value

The 60-Day Filing Requirement

Under KRS 395.250, the inventory must be filed in duplicate with the District Court within 60 days of appointment. Many new executors are surprised by how quickly this deadline arrives — especially when they're simultaneously managing grief, funeral logistics, and notifying agencies.

Start gathering asset information the week you're appointed. Request account statements and balances immediately. Inventory physical personal property before any items leave the residence.

If you genuinely cannot complete the inventory in 60 days due to circumstances beyond your control (for example, waiting for a business valuation), contact the court clerk about whether an extension can be requested. While not guaranteed, some courts will accommodate reasonable extensions when requested proactively.

What Happens After You File

The inventory becomes part of the public court record. Creditors can review it to understand what assets are available for their claims. The court uses it to verify the bond amount is adequate.

Later, when you file your final settlement (Form AOC-846 or AOC-850), the court will compare your closing accounting against this opening inventory. Every asset listed here must be accounted for — either distributed to a beneficiary, used to pay a legitimate expense, or explained.

The Kentucky Probate Process Guide includes a structured inventory worksheet that maps each asset category to the correct AOC-841 line, helps you separate probate from non-probate assets, and tracks valuation sources — so your 60-day filing is complete and defensible.

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