Yes, trusts can avoid probate in Kentucky. By creating a trust and transferring assets into it, you can bypass the probate process, saving time and money for your beneficiaries. Assets held in a trust do not become part of your personal estate and are not subject to probate upon your death.
The cost of creating a trust in Kentucky varies depending on the complexity of your estate and the attorney's fees. The average cost for a basic Revocable Living Trust ranges from $1,000 to $3,000, while more complex trusts may cost more. Online legal services may offer lower-cost alternatives to traditional legal services for creating trusts.
The most common type of trust is a Revocable Living Trust, which allows you to maintain control over your assets during your lifetime and can be amended or revoked. Other types of trusts, such as Charitable Trusts or Special Needs Trusts, may be appropriate depending on your specific estate planning goals.
To fund a trust in Kentucky, you must transfer ownership of your assets to the trust. This includes re-titling real estate, changing account holders for bank accounts, and transferring ownership of personal property, vehicles, stocks, and bonds.
In Kentucky, any individual who is at least 18 years old and mentally competent can serve as a trustee. Additionally, Kentucky law allows for corporations, such as banks or trust companies, to serve as a trustee if they are authorized to exercise trust powers in the state. Trustees must be able to handle and take care of property, and they can't have been found guilty of serious crimes, including felonies or crimes that involve dishonest or immoral behavior.
In Kentucky, to change your living trust, you need to generate an amendment to the original trust document. This amendment should clearly state the changes you wish to make, such as adding or subtracting beneficiaries, changing trustees, or modifying distribution instructions. Make sure to include the date, your name, the name of the trust, and the date the trust was established. As with the original trust document, your amendment should be signed in the presence of a notary public. If there are numerous changes you want to make to your living trust, it may be more efficient to create a restatement of the trust. A restatement allows you to rewrite the whole trust, while keeping the original date and title of the trust, which can be beneficial for avoiding retitling assets. In the restatement, you would include all the changes you want to make, and the new provisions will supersede the old ones completely.
