Update Your Estate Plan After Moving to Kentucky: Three Traps New Residents Miss

Your Out-of-State Plan May Not Work Here

Kentucky generally honors wills that were validly executed in another state. If your will met the legal requirements of your former home state, it's technically valid in Kentucky too. But "valid" doesn't mean "effective." Kentucky has several rules that can silently undermine an out-of-state estate plan in ways you won't discover until it's too late.

Three issues catch new Kentucky residents most often.

Trap 1: Your TOD Deed Is Void

If you came from a state that allows transfer on death deeds — Colorado, Missouri, Ohio, Illinois, and about 30 others — you may have recorded a TOD deed on property you owned there. That tool let you name a beneficiary directly on the deed, bypassing probate at death.

Kentucky does not recognize TOD deeds for real property. Senate Bill 34, which would have adopted the Uniform Real Property Transfer on Death Act, passed the Kentucky Senate in March 2026 but died in the House committee. Any attempt to record a TOD deed on Kentucky real estate is legally void.

If you've purchased a home in Kentucky and assumed you could use the same TOD deed mechanism you relied on in your previous state, that property will go through probate when you die. You need to either retitle it as joint tenancy with right of survivorship, transfer it into a revocable living trust, or accept that it will require probate administration.

Trap 2: Your Out-of-State Executor May Not Qualify

Under KRS 395.005, a nonresident can only serve as personal representative of a Kentucky estate if they are related to the decedent by blood, marriage, or adoption. Many states have no such restriction — your trusted accountant in California, your college roommate in New York, or your financial advisor in Texas could serve as executor in those states without issue.

In Kentucky, they can't. If the executor named in your out-of-state will is an unrelated nonresident, the court will refuse to appoint them. You'll need to either name a Kentucky resident or name a relative who lives out of state and designate a Kentucky resident as their agent for service of process.

Review your will and confirm that your named executor — and your alternate — qualify under Kentucky's rules.

Trap 3: You're Missing the Community Property Trust Benefit

Kentucky is a common law property state, meaning each spouse owns the assets titled in their name. But if you moved from a community property state — California, Texas, Washington, Arizona, Nevada, Wisconsin, Louisiana, Idaho, or New Mexico — you may have assets that were originally characterized as community property.

Kentucky adopted the Uniform Disposition of Community Property Rights at Death Act (KRS 391.210-391.220), which preserves the community property character of assets you bring into the state. This matters enormously for taxes.

Under IRC 1014(b)(6), community property receives a "double step-up" in cost basis when one spouse dies — both halves are stepped up to fair market value, completely erasing capital gains. Common law property only steps up the decedent's half.

If you moved from a community property state with appreciated assets — a home that's gained $200,000 in value, a stock portfolio with substantial unrealized gains — preserving their community property character through a community property trust can save the surviving spouse tens of thousands of dollars in capital gains tax when they eventually sell.

Couples who relocated from common law states can also voluntarily elect community property treatment by establishing a Kentucky community property trust — one of the unique planning advantages of living in the Commonwealth.

Your Post-Move Checklist

After relocating to Kentucky, review and update:

• Will and executor: Confirm your named executor qualifies under KRS 395.005
• Real estate titles: Verify your Kentucky property is titled to avoid probate (JTWROS, tenancy by entirety, or trust)
• Power of attorney: Consider executing a new Kentucky-specific durable POA to avoid any questions about out-of-state recognition
• Living will and healthcare surrogate: Kentucky's specific statutory requirements differ from other states — a new Kentucky-compliant form eliminates ambiguity
• Community property analysis: Consult with a tax advisor about whether a community property trust makes sense for your appreciated assets

The Kentucky Basic Estate Planning Kit includes all the Kentucky-specific document templates you need to rebuild your estate plan after a move — plus a transplant checklist that walks through every item above.

See more Kentucky guides →