Wills and Trusts in Kentucky
Many people assume estate planning is only necessary for the wealthy, but it benefits anyone who wants to protect their loved ones and ensure a smooth transfer of assets. Whether you have a large estate or modest savings, a will or trust provides clear instructions that simplify the process for your beneficiaries.
Taking the time to establish a comprehensive estate plan today can prevent unnecessary stress for your family in the future. Consulting an experienced estate planning attorney in Kentucky ensures that your plan meets legal requirements and reflects your wishes.
Wills vs. Trusts
A will is a legal document that dictates how your assets should be distributed upon your death. It allows you to name an executor to oversee the estate administration and designate guardians for minor children. Kentucky law requires that a will be written, signed by the testator, and witnessed by at least two competent individuals.
A trust, by contrast, is a fiduciary arrangement that allows a trustee to manage assets on behalf of beneficiaries. Trusts offer greater control over asset distribution and can help avoid probate. Kentucky recognizes several types of trusts, including revocable, irrevocable, and special needs trusts, each serving different financial and estate planning purposes.
How to Create a Will or Trust in Kentucky
Identify Assets
The first step in estate planning is identifying your assets. A detailed inventory of real estate, bank accounts, investments, and personal property ensures that nothing is left out of your will or trust.
Choose the Distribution
Next, decide how your assets should be distributed. While a will allows you to name beneficiaries, some accounts—such as retirement plans and life insurance policies—already have designated beneficiaries that take precedence over your will. It’s important to review these accounts regularly.
Choose the Executor of your Kentucky Will or Trust
Selecting an executor or trustee is a critical part of estate planning. In Kentucky, an executor must be at least 18 years old and of sound mind. While many people appoint family members, hiring an attorney or financial professional may provide added objectivity and efficiency in handling the estate.
Choose a Guardian
Parents should also name a guardian for minor children in their wills. Without this designation, a court will decide who takes responsibility for their upbringing, which may not align with the parents’ preferences.
Sign with Witnesses
Kentucky law requires that wills be signed in the presence of two competent witnesses, who must also sign the document. These legal formalities help ensure that your will is enforceable and prevents potential disputes.
Update and Create your Will or Trust as Necessary
Estate plans should be reviewed regularly, especially after major life changes such as marriage, divorce, or the birth of a child. Keeping your will or trust updated ensures it continues to reflect your intentions.
The Different Types of Wills in Kentucky
Simple Will
A simple will is a document that directs how assets should be distributed upon death. While it provides clear instructions, it does not prevent probate, which can be a lengthy and public process.
Joint Will
A joint will is a single will executed by two individuals, usually spouses, outlining the distribution of their combined assets. Though legal in Kentucky, joint wills can be inflexible because they typically cannot be altered after one spouse’s death.
Living Will
A living will, also known as an advance directive, specifies your preferences for medical treatment in the event that you become incapacitated. This document ensures that your healthcare decisions align with your wishes while alleviating the burden on family members.
Holographic Will
Kentucky recognizes holographic wills, which are handwritten and signed by the testator. However, they are more likely to be contested in probate court due to the lack of witnesses, making formally executed wills a more secure option.
Pour-Over Will
A pour-over will works in conjunction with a trust by directing any remaining assets into the trust upon death. This structure simplifies estate management and ensures that all assets are distributed according to the trust’s terms.
The Different Types of Trusts in Kentucky
Irrevocable Trust
An irrevocable trust cannot be modified once established. It is often used to shield assets from creditors, qualify for Medicaid benefits, or reduce estate taxes. Since assets are no longer part of the grantor’s estate, they offer long-term financial protection.
Revocable Trust
A revocable living trust allows the grantor to retain control over their assets while they are alive and provides a seamless transition to beneficiaries upon death. Since trust assets bypass probate, they are distributed more efficiently.
Family Trust
Many create this type of trust to ensure their loved ones are provided for after they’re gone. It offers peace of mind, knowing that children, siblings, or extended family members will receive the assets you’ve set aside for them.
Charitable Trust
A charitable trust enables individuals to allocate assets to nonprofit organizations while also receiving tax advantages. Some trusts allow donors to provide for their heirs first before the remaining assets are transferred to charity.
How to Avoid Probate in Kentucky
Probate can be costly and time-consuming, but there are several ways to avoid it. Creating a revocable living trust is one of the most effective strategies for transferring assets outside of probate.
Joint ownership with rights of survivorship allows the property to pass directly to a surviving owner without probate. This is commonly used for real estate and financial accounts.
Payable-on-death (POD) and transfer-on-death (TOD) designations can be assigned to bank accounts, securities, and real estate, ensuring that these assets pass to named beneficiaries without court involvement.
Kentucky also offers a simplified probate process for small estates valued under $30,000. This allows heirs to claim assets without formal probate proceedings. (Kentucky Probate Rules)
Work with an Experienced Kentucky Estate Planning Will and Trust Attorney
Planning for your eventual death is not a pleasant task. Along the way, you are bound to wonder how wills and trusts work in Kentucky? How can I make this process easier?
It is tedious, but it’s crucial to ensure that your family and legacy are secured. The law does not require an individual to hire a trust attorney or will lawyer, but they can prove invaluable if they catch issues that could result in your estate going to probate. If you feel like you need help, it’s worth your time to consider hiring an experienced estate planning attorney. We can even help you connect with legal help across Kentucky state lines.
Submit a request or call us today at (866)-345-6784 to speak to a local will and trust attorney!
About the Author
Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.
With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations.
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