Is Creating a Kentucky Revocable Living Trust Agreement Necessary?
You are probably asking yourself if creating a Kentucky revocable living trust is necessary. And the truth is that there are many benefits of a revocable living trust, including:
Avoiding probate: Probate is the legal process of distributing a person's assets after death. For example, if you die with a will, your assets will go through probate. However, if you die with a revocable living trust, your assets can be distributed without going through probate.
Privacy: Probate is a public process, which means anyone can access the documents filed with the court. A revocable living trust is a private document whose contents will not be publicized.
Flexibility: As the Trustor, you can change the terms of the trust at any time. You can also revoke the trust entirely if you choose so.
Manage Your Assets: You can use a revocable living trust to manage your assets while alive and healthy. For example, if you become incapacitated, the trustee can step in and manage the trust assets on your behalf.
Who Can Make a Revocable Living Trust in Kentucky?
Anyone above 18 years and with a sound mind can create a revocable living trust. Whether creating a revocable living trust for a married couple or anything in between, you should identify a trustworthy person to name as trustee and another as successor trustee in case the first trustee is unable or unwilling to serve.
It would be best if you established your beneficiaries. A beneficiary can be a relative, a friend, or a charitable organization. You can name more than one beneficiary and specify how you want the assets distributed among them.
Once you have identified your trustee and beneficiaries, you will need to gather your assets and transfer them into the trust. This can be done by retitling your bank accounts and investment accounts in the name of the trust. For real estate properties, you will need to change the deed to reflect the new ownership by the trust.
You then need a legal document called a Declaration of Trust, which will state the terms of the trust. The Declaration of Trust should be signed and notarized.
Do You Need a Kentucky Living Trust?
Kentucky has not adopted the Uniform Probate Code, meaning the probate process can be lengthy and expensive. However, Kentucky has a simplified probate process for estates below $30,000. This also applies to revocable joint trusts for married couples. Also, individuals that have paid preferred claims, such as funeral expenses or taxes, can file an affidavit to have their estate exempt from the probate process.
Do You Still Need a Will If You Have a Living Trust?
Yes, you should consider creating a will even if you have a revocable living trust. This is because not all of your assets may be transferred into the trust. For example, remember to retitle your bank accounts in the name of the trust. In this case, your bank accounts would not be distributed according to the terms of the trust and would instead go through probate.
A will can also be used to name a guardian for your minor children. Kentucky law will decide who will raise your children if you die without a will.
Does a Living Trust Lower Your Estate Taxes?
Federal Estate taxes in Kentucky are only levied for estates above $12 million, so most residents will not have to worry about estate taxes. However, if your estate is valued at $12 million or more, you can use AB trust planning to lower your estate taxes.
If you wish to create a revocable living trust online, Forms.legal offers free Kentucky revocable living trust forms that you can use to make the process easier. You can also access the form in PDF, so all you need to do is fill, download and print it.